Sembcorp 2022 earnings triple as second-half profit jumps 54% to $358m
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Sembcorp attributed the improved profits to higher contributions from its renewables and conventional energy segments.
PHOTO: ST FILE
Yong Hui Ting
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SINGAPORE – Sembcorp Industries on Tuesday posted a 54 per cent increase in its second-half net profit to $358 million, from $233 million in the year-ago period.
The group attributed the improved profits for the six months to December to higher contributions from its renewables and conventional energy segments.
Earnings per share for the energy company also rose 54 per cent to 20.09 cents for the second half of 2022, from 13.06 cents for the same period in 2021.
Sembcorp’s second-half turnover grew 3 per cent to $3.9 billion from $3.8 billion.
The company has proposed a final dividend of four cents per ordinary share and a special dividend of the same amount. This is two times the amount declared for the same period last year. It is, however, pending approval at the next annual general meeting, which will be held on April 20.
If approved, the dividends will be paid on May 8, after the record date on April 27.
Sembcorp’s net profit for the full year trebled. Profit attributable to owners of the company was up 204 per cent for financial year 2022 at $848 million, from $279 million for financial year 2021.
Turnover for the full year gained 22 per cent to $7.8 billion from $6.4 billion.
Sembcorp’s renewables arm in the second half of the year saw the biggest improvement among all its business segments. Net profit for its renewables segment rose 75 per cent to $56 million for the second half of 2022, from $32 million.
The energy group also gained from high power prices in Britain and Singapore, registering a 67 per cent growth in profits from conventional energy to $307 million.
Net profit from integrated urban solutions, however, saw a weaker performance in the second half of 2022, slipping 15 per cent to $78 million from $92 million.
The group attributed this to lower land and property sales from the urban business in China due to a slowdown in that market, and lower contribution from the waste management business in Singapore with the cessation of a public waste collection contract in December 2021.
The company expects the performance of its renewables segment to continue growing in 2023 as a result of contributions from acquisitions announced in 2022, while the performance of its conventional energy segment would be subject to market conditions.
Sembcorp shares rose 0.5 per cent to $3.76 apiece at the close on Tuesday. THE BUSINESS TIMES
