SEMBCORP Industries on Tuesday (Feb 21) posted a 54 per cent increase in its net profit for H2 ended Dec 31, 2022, to S$358 million, from S$233 million for H2 2021.

The group attributed the improved profits 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 Singapore cents for H2 2022, from 13.06 Singapore cents for H2 2021.

Sembcorp’s H2 turnover grew 3 per cent to S$3.9 billion, from S$3.8 billion.

The company has proposed to pay out a final dividend of S$0.04 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 Apr 20.

If approved, the dividends will be paid on May 8, after record date on Apr 27.

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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 S$56 million for H2 2022, from S$32 million.

The energy group also stood to gain from high power prices in the UK and Singapore as it registered a 67 per cent growth in profits from conventional energy to S$307 million. 

Net profit from integrated urban solutions, however, saw a weaker performance in H2 2022, slipping 15 per cent to S$78 million, from S$92 million. The group attributed this to lower land and property sales from the urban business in China due to a slowdown in the China market, and lower contribution from the waste management business in Singapore with the cessation of a public waste collection contract in December 2021. 

Meanwhile, Sembcorp’s net profit for the full year trebled. Profit attributable to owners of the company was up 204 per cent for FY2022 at S$848 million, from S$279 million for FY2021.

Turnover for the full year gained 22 per cent to S$7.8 billion, from S$6.4 billion.

The company expects performance for its renewables segment to continue growing in 2023 as a result of contributions from acquisitions announced in 2022, while performance of its conventional energy segment would be subject to market conditions.

Shares in the company lost 0.3 per cent or S$0.01 to S$3.74 on Monday.