SINGAPORE - Sembcorp Industries posted a 25 per cent drop in its interim dividend amid a sharp fall n second quarter earnings.
Net profit for the three months to June 30 plunged 36.1 per cent from a year ago to $55.3 million despite higher revenue.
The interim dividend recommended for the quarter was three cents per share, down from four cents last year, the firm reported on Thursday (3 Aug).
Second-quarter revenue climbed 23.2 per cent year-on-year to $2.3 billion, driven by higher contributions from the utilities segment.
The increase was offset by weaker turnover in the marine segment, which posted a 28 per cent decline due to lower contribution from its rig building and offshore platform projects, it added.
The firm also posted a 20.7 per cent rise in general and administrative expenses to $113.9 million in the second quarter.
"With a deep industry downturn on one hand and market disruptions on the other, we recognise the need to be both prudent and agile," noted Mr Neil McGregor, group president and chief executive.
"We will be disciplined on cost, cash flow and balance sheet, while at the same time smart about capturing opportunities and reshaping Sembcorp for the future,"
Quarterly earnings per share shrank to 2.54 cents from 4.29 cents in the previous year, while net asset value per share inched up slightly to $3.85 as at June 30, from $3.75 as at Dec 31 last year.
First-half net profit came it at $174.4 million - down 9.9 per cent year-on-year - while turnover rose 18 per cent to $4.4 billion.
The counter closed two cents lower to $3.22 on Thursday (Aug 2) before the results were announced.