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Sembcorp's Q4 profit up 7.5% on higher gains from utilities business

Tuesday, February 17, 2015 - 19:12
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Sembcorp Industries' fourth quarter net profit for the three months ended Dec 31, 2014 grew 7.5 per cent to S$240.62 million, as the group recorded higher contribution from its utilities business in China and the UK.

Sembcorp Industries' fourth quarter net profit for the three months ended Dec 31, 2014 grew 7.5 per cent to S$240.62 million, as the group recorded higher contribution from its utilities business in China and the UK.

Net profit for FY14 fell 2.4 per cent to S$801 million, mainly because FY13 included the gains from the initial public offering of its joint venture in Oman, Sembcorp Salalah Power & Water Company, which were offset by an impairment made on its UK Teesside operations.

Excluding these significant items, Sembcorp achieved a seven per cent net profit growth in FY14 from S$381.3 million in FY13.

In Q4 FY14, Sembcorp's revenue fell 10.4 per cent to S$2.66 billion. The reduced turnover was mainly due to lower revenue recognition for rig building projects, which fell 15 per cent to S$1.44 billion. Meanwhile, turnover from its utilities business also fell five per cent to S$1.17 billion due to lower high sulphur fuel oil prices.

FY14 turnover inched up 1 per cent to S$10.89 billion mainly due to the higher revenue recognition for rig building projects in the first three quarters and offshore and conversion projects.

For the three months ended Dec 31, 2014, earnings per share stood at 13.33 cents while net asset value per share was S$3.15.

Cash dividend of 16 cents were declared for FY14, which includes interim dividend of five cents and a proposed final dividend of 11 cents.

On Tuesday, Sembcorp's counter closed down 0.474 per cent at S$4.20.