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Sembcorp sinks into the red with S$15m Q4 loss

SEMBCORP Industries sank into the red with a net loss of S$15 million for its fourth quarter ended Dec 31, 2019, compared with a net profit of S$106 million a year ago, dragged by lower revenue from its energy and marine segments. 

Loss per share stood at 1.34 Singapore cents for the quarter, from an earnings per share of 5.42 cents a year ago, the conglomerate said in a regulatory filing on Thursday.

Revenue for Q4 fell 10 per cent to S$2.32 billion from S$2.56 billion a year ago.

A final cash dividend of three Singapore cents per share has been recommended for the full year, up from two cents per share a year ago. The final cash dividend is subject to shareholders' approval at its annual general meeting on April 22, with books closure on April 29. If approved, the dividend will be paid on May 15.

Together with an interim dividend of two Singapore cents per share paid in September 2019, the group's total dividend for the year will be five cents per share.

For the full year ended Dec 31, 2019, net profit was down 29 per cent to S$247 million, while revenue was down 18 per cent to S$9.62 billion.

On outlook, Sembcorp said there are still downside risks to global economic growth expectations with heightened geopolitical tensions as well as the impact of the Covid-19 outbreak on China and the region.

The group's energy and urban business will continue to underpin its performance in 2020, while the offshore and marine sectors continue to experience sustained downturns.

"The group remains committed to its transformation plan, anchored by strong fundamentals and increasing opportunities to provide sustainable solutions to support the global energy transition," Sembcorp said.

Shares of Sembcorp closed at S$2.02 on Thursday, down S$0.02 or 1 per cent.