SINGAPORE - Singapore conglomerate Sembcorp Industries reported strong second quarter results mainly owing to profits from the divestment of a subsidiary. Excluding this, profits from its main businesses, utilties and marine, were lower than the corresponding period a year before.
Net profit was S$223.563 million for the three months ending June 30, up 24.9 per cent from the same period a year ago. Revenue fell to S$2.4 billion, down 5.8 per cent.
For the first half of this year, net profit was S$365.774 million, up 0.5 per cent from the same period a year ago, the company said in a release on Tuesday.
Revenue fell to S$4.7 billion, down 8.4 per cent from a year ago.
Sembcorp Industries said net profits of the utilities business for the first half of the year was S$215.986 milion, up 17 per cent from the corresponding period last year. This was mainly due to the gain on the sale of Sembcorp Bournemouth Water Investment in April this year. Excluding this sale, net profit would have been lower due to intense competition in the Singapore power market and the low oil prices, it said.
Net profit of the marine business was S$131.380 million for the first six months, down 15 per cent. This was mainly due to lower contribution from rig building projects, higher finance costs and lower associates and joint ventures contributions, Sembcorp Industries said.
Revenue from utilities was lower in the second quarter mainly due to "(the) Singapore operations' lower high sulphur fuel oil prices recorded during the period." This decline was partially mitigated because Thermal Powertech Corporation India's operations commenced and Green Infra Limited, a renewable energy company in India, was acquired, the company said.
Earnings per ordinary share for the three months to June was 12.19 cents as at June 30, up from 9.87 cents a year ago. This was based on the weighed average number of shares.
The net asset value per ordinary share was S$3.61 as at June 30, up from S$3.15 at Dec 31.
The comany declared an interim dividend of five cents per ordinary share, the same as the dividend paid in the corresponding period last year.
It said: "Despite the challenges of a low oil price environment and a mixed global economic outlook for 2015, the Group, underpinned by sound business fundamentals and a healthy pipeline of projects, remains committed to delivering long-term value and growth."