Sembcorp Industries Q2 net profit down 36%

HIGHER refinancing cost for a power plant in India took a toll on results for Sembcorp Industries in its second quarter.

Net profit dived 36.1 per cent to S$55.3 million from the previous year, the group said in a Singapore Exchange filing on Thursday evening.

For the three months ended June 30, revenue climbed 23.2 per cent to S$2.28 billion from the previous year. The increase in revenue was due partly to a boost in contribution from the utilities division though this was offset by poorer performance in the marine division, it said.

Earnings per share sank to 2.54 Singapore cents from 4.29 Singapore cents in the previous year. Sembcorp's board announced an interim dividend of 3 Singapore cents, against 4 Singapore cents in the year-ago period.

Said group president and CEO Neil McGregor: "With a deep industry downturn on one hand and market disruptions on the other, we recognise the need to be both prudent and agile.

"We will be disciplined on cost, cash flow and balance sheet, while at the same time smart about capturing opportunities and reshaping Sembcorp for the future."