Sembcorp Industries' new CEO announces strategic review; Q1 profit up 11.3%

SEMBCORP Industries' new CEO Neil McGregor said the firm will be undertaking a strategic review of its business, as the firm recorded an 11.3 per cent rise in net profit for the first quarter of this year compared to the year-ago period.

The strategic review, to be conducted over the next few months, will be focused on performance, sustainability and value creation, said Mr McGregor in a statement.

"We face a challenging macro environment with rapidly changing market dynamics. This requires us to focus on cost discipline and strengthening operating performance," he said. "As we reshape Sembcorp, we will continue to build businesses that are durable and sustainable."

Meanwhile, higher other income and lower tax expense gave a fillip to results for Sembcorp Industries for its first quarter.

Net profit increased to S$119.1 million, from S$107 million in the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

Earnings per share expanded to 6.13 Singapore cents from 5.45 Singapore cents in the year-ago period.

For the three months ended March 31, revenue rose 12.9 per cent to S$2.14 billion from the previous year. The gain in revenue was due to higher contribution from its utilities division, offsetting a drop in the marine division.

The market environment is expected to remain challenging this year, the firm said.