Sembcorp Industries' Q2 profit jumps on divestment gain

EARNINGS for utilities and marine group Sembcorp Industries climbed in the second quarter, but that was mostly due to gains from the sale of a subsidiary.

Net profit rose 24.9 per cent from the previous year to S$223.56 million for the three months ended June 30, the group said on Tuesday.

This was on the back of a S$54.71 million gain on disposal for selling a unit, Sembcorp Bournemouth Water Investment, in April 2015.

Turnover fell 5.8 per cent to S$2.39 billion in Q2 2015, with poorer revenue contributions from its utilities, marine and urban development segments.

Those declines were mitigated by higher contributions from a unit dealing with "specialised construction activities", the group said.

It said this year is "expected to be challenging" for the Singapore energy business amid stiff competition in the power market and low oil prices, but its overseas business is expected to "continue to deliver a steady performance".

Earnings per share came in at 12.19 cents for the quarter, up from 9.87 cents the previous year. Net asset value per share expanded to S$3.61 as at June 30 from S$3.15 as at Dec 31, 2014.

The group declared an interim dividend of five cents, unchanged from the previous year.

Sembcorp Industries shares rose S$0.10 to S$3.46 on Tuesday before the results were released.