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Stiff competition in utilities market dims Sembcorp Q1 earnings

A GLOOMIER showing from its utilities arm and weakness in its marine division dragged down first-quarter earnings for Sembcorp Industries.

Net profit fell 23.1 per cent to S$142.2 million for the three months to March 31 from the preceding year, the group said on Thursday.

The drop came on the back of a 11 per cent slide in turnover to S$2.34 billion in the period.

Sembcorp's utilities business was hit by "continued intense competition in the Singapore power market", it said in a statement, adding that its marine business brought in lower rig building and repair earnings.

Earnings per share fell to 7.83 Singapore cents for Q1, down from 10.25 Singapore cents the preceding year. Net asset value per share rose slightly to S$3.31 as at March 31, from S$3.15 as at Dec 31.

Sembcorp Industries shares dipped a cent to S$4.49 on Thursday before it released results.