Sembcorp Industries Q4 net profit falls 74.7%

SEMBCORP Industries posted S$60.78 million of net attributable profit to shareholders in the fourth quarter, 74.7 per cent down from S$240.62 million last year as its marine business slid into the red.

Turnover was S$2.42 billion, down from S$2.66 billion.

Earnings per share was 2.86 Singapore cents compared to 13.33 Singapore cents a year ago.

Full-year net attributable profit was S$548.85 million, down 31.5 per cent from S$801 million for FY14.

Turnover was S$9.54 billion for FY15, down from S$10.89 billion for the previous year.

Earnings per share was 29.17 Singapore cents, down from 44.31 Singapore cents.

Sembcorp Industries proposed a final dividend of 6 Singapore cents per share for FY15, bringing the total dividend for the year to 11 cents per share including an interim pay-out of 5 Singapore cents.

Its utilities business delivered a 72 per cent expansion in full-year net profit to S$701.5 million, but the increase was offset by S$176.4 million in net loss posted by its marine business unit, Sembcorp Marine, and a decline in the net profit of its urban development business to S$33.5 million from S$44.3 million.

Tang Kin Fei, group president & CEO of Sembcorp Industries, said the group has built up "a strong income base" in its utilities business. Despite the challenging times and uncertainties in Brazil affecting its marine business, the company remains confident in the long-term fundamentals for the offshore and marine industry, Mr Tang said.

Mr Tang also flagged over S$400 million in net gain from divestments in FY15, which provides the group with "additional resources to invest in businesses and markets with high growth potential".

"We also secured over 3000 megawatts of new thermal and renewable energy projects in China, India, Myanmar and Bangladesh which will expand our income base and provide visibility on future growth," he added.

Shares in Sembcorp Industries closed 2 cents up at S$2.53 on Wednesday before the results were announced.

Sembcorp Industries posed full-year net profit of S$701.5 million for its utilities division, not S$408 million as previously stated. We apologise for the error.