Sembcorp Industries Q1 profit down 25%

Singapore

SEMBCORP Industries' profits fell in the first quarter, weighed down by its oil-and-gas exposure through its marine arm, and also as higher borrowing costs partly from Sembcorp Marine (SembMarine) ate into the bottom line.

On Wednesday, it posted a 25 per cent fall in net profit for the first quarter to S$107 million from S$142 million in the same period a year ago. This translated into earnings per share of 5.45 Singapore cents, down 30 per cent from 7.83 cents.

Gross profit fell 6.9 per cent from a year ago to S$269 million, dragged by weaker operations linked to rig building projects. Its share of net profit from SembMarine fell 48 per cent to S$33.5 million. This was cushioned in part by a slight lift in earnings on its utilities business - which now makes up 72 per cent of the group's net profit - with earnings from the segment gaining one per cent to S$75.2 million. Overseas operations lifted performance, with the group securing long-term power purchase agreeme…