Revenue was down but Sembcorp Industries still managed to lift earnings in the second quarter, the company announced yesterday.
Net profit came in at $98 million for the three months to June 30, up 20 per cent from the $82 million recorded in the same period a year earlier. The improvement in the bottom line was achieved despite a 29 per cent fall in revenue to $2.37 billion. The firm said the 33 per cent decline in cost of sales outstripped the drop in revenue.
Earnings per share rose 26 per cent to 4.98 cents from 3.94 cents.
Net profit of $191 million for the first half was up 20 per cent, but revenue similarly took a hit, falling 21 per cent to $4.85 billion.
Group chief executive Neil McGregor said: "This performance was underpinned by our energy business. We continue to make progress in our strategy to reposition the business to become a more sustainable integrated energy player in the global energy transition. Our focus remains on lifting performance, building capabilities and sharpening our competitive edge."
The company declared an interim dividend of two cents a share to be paid on Sept 4.
AT A GLANCE
REVENUE: $2.37 billion (-29%)
NET PROFIT: $98 million (+20%)
DIVIDEND PER SHARE: 2 cents
"The market environment continues to be challenging for the offshore and marine sector and Sembcorp Marine is expecting full-year losses," it noted yesterday.
Sembcorp Industries shares closed down 0.4 per cent at $2.26 before results were announced.