Sembcorp Industries' Q3 earnings dive as all engines stall

SEMBCORP Industries posted a marked drop in earnings in the third quarter with declines in all three of its major business segments, particularly its marine arm.

Net profit for the three months ended Sept 30 plummeted 37.8 per cent to S$122.30 million, on the back of a 21.8 per cent tumble in turnover to S$2.40 billion year-on-year.

Earnings per share for Q3 came in at 6.29 Singapore cents, a 42.1 per cent plunge from the previous year, the group said in a press release on Thursday.

The bottomline was weighed down mainly by the group's downbeat marine arm, followed by its utilities segment.

Net profit from the marine unit nosedived 75 per cent to S$19.65 million due to lower contribution from rig building projects, the group said.

The utilities arm, which made up the bulk of earnings, also saw a 21 per cent slide in earnings to S$90.25 million, which the group said was partly due to lower spark spreads in its Singapore operations. "2015 is challenging for the Singapore energy business with continued intense competition in the power market as well as low oil prices," it said in its statement.

Urban development also recorded a 7 per cent decrease in net profit to S$4.57 million.

The group's net asset value per share was S$3.64 as at Sept 30, 2015, up from S$3.15 as at Dec 31, 2014.

Sembcorp Industries shares dipped three cents to S$3.58 on Thursday before the results were released.