Shares slide 6% after Sembcorp flags S$245m impairment

Singapore

SHARES in Sembcorp Industries (SCI) were sold down on Friday after the conglomerate issued a profit guidance overnight.

Its energy business is expected to turn in a loss for the fourth quarter ended Dec 31 due to an impairment of S$245 million. The amount represents about 4 per cent of the company's net asset value as at Sept 30.

SCI shares closed S$0.13, or 6 per cent, lower at S$2.03 on a volume of 16.3 million, making it among the Straits Times Index's most active counters.

The S$245 million impairment that the company announced after market close on Thursday comprises a S$158 million write-down of its UK Power Reserve (UKPR) assets, S$64 million reduction in value after the divestment of its Chilean water business, and S$23 million impairment of its China wastewater treat…