Engineering conglomerate Sembcorp Industries posted a 25 per cent jump in second-quarter earnings to $223.6 million, boosted by gains from the sale of a subsidiary.
The bottom line got a lift from the sale of Sembcorp Bournemouth Water Investment for $54.7 million in April this year.
Revenue slid 5.8 per cent to $2.39 billion, largely on the back of thinner contributions from the core utilities and marine businesses.
Turnover for the utilities unit dipped 3 per cent to $1.12 billion owing to lower high-sulfur fuel oil prices in operations here, as the marine segment sank 10 per cent to $1.21 billion, dragged down by lower revenue recognition for rig building. Its urban development business shrank 7 per cent to $1.93 million.
But the decreases were mitigated by a 62 per cent surge in turnover from a unit dealing with "specialised construction activities", it said.
AT A GLANCE
REVENUE: $2.39 billion (-5.8%)
NET PROFIT: $223.6 million (+25%)
DIVIDEND PER SHARE: 5 cents (unchanged)
Net profit for the half year inched up 0.5 per cent to $365.8 million, while revenue slid 8.4 per cent to $4.73 billion. Earnings per share for the quarter was 12.19 cents, up from the 9.87 cents previously.
Net asset value per share stood at $3.61 as at June 30, higher than the $3.15 as at Dec 31 last year.
Sembcorp Industries declared an interim dividend of five cents a share, unchanged from previously.
Group chief financial officer Koh Chiap Khiong said that the rest of the year is expected to be challenging for the Singapore energy business, with "continued intense competition in the power market as well as low oil prices".
But he added the group's overseas business is likely to continue to deliver a steady performance.
The first unit of the Thermal Powertech Corporation power plant in India, for one thing, commenced operation in the first quarter of the year and will be in full operation by the next quarter.
Sembcorp Marine has a net order book of $10.9 billion, including $1.35 billion in contracts secured so far this year.
Group president and chief executive Tang Kin Fei said Sembcorp Industries' overseas growth strategy "remains on track".
The group in February acquired a 60 per cent stake in Green Infra, a renewable energy company in India that has a wind and solar portfolio, while expanding its renewable energy footprint in China with another 150 megawatts of wind power capacity to be added in Hebei.
This brings its renewable energy portfolio to more than 1,200 megawatts. The group was also recently awarded a 225-megawatt project worth US$300 million (S$413 million) to develop the largest independent power plant in Myanmar.
Sembcorp Industries shares closed at $3.46, up 10 cents or 2.98 per cent, before the results were announced. SembMarine shares ended one cent or 0.388 per cent lower at $2.57.