SEMBCORP Industries posted an 11 per cent decline in net profit to S$540 million for the first half ended June on a continuing operations basis, from S$608 million in the previous corresponding period.
Before exceptional items, net profit for the half-year period would have stood at S$532 million, down 12 per cent on the year from S$602 million, based on the group’s financial results released on Tuesday (Aug 6).
Exceptional items comprise gains from the purchase of a 100 per cent equity interest in two special purpose vehicles from green energy supplier Leap Green Energy.
The results translate to an earnings per share of S$0.303, down from S$0.3408 the year before.
Revenue fell 12 per cent to S$3.2 billion in H1 2024 from S$3.7 billion previously.
The group attributed the decrease to lower contributions from the gas and related services segment, which was caused mainly by the planned major maintenance in Singapore. It added that the renewables segment also experienced higher curtailment in China.
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Sembcorp noted that its business had performed well in H1 2024, despite lower wholesale power prices and the major maintenance of its gas-fired power plant in Singapore.
Wong Kim Yin, group president and chief executive officer of Sembcorp, said: “The robust contribution from our portfolio provides a strong anchor for our 2024 to 2028 strategy, with our portfolio of gas and renewable energy uniquely positioned to meet the strong and increasing demand expected from corporate customers including data centres.”
Sembcorp also said its full-year results before exceptional items are expected to be fairly stable.
“The group is well-positioned to navigate the path of energy transition and grow its renewables’ portfolio,” it said.
Its board has approved an interim cash dividend of S$0.06 per share for the first half, up from S$0.05 per share in the year before. It will be paid out on Aug 22.
Separately, the group also announced its plans to invest about S$700 million in its integrated urban solutions segment. It would represent 5 per cent of its total investments for 2024 to 2028.
As part of the plan, Sembcorp aims to expand Sembcorp’s land bank from 14,000 to 18,000 hectares by 2028.
It also targets to grow recurring income by increasing industrial properties to 1.5 million square metres (sqm) by 2028 from 100,000 sqm, to support manufacturing demand, growing domestic consumption and e-commerce.
The investment will be funded through operating cash flow, project financing, internal funding, as well as capital recycling.
It added that it is also exploring partnerships to develop and grow an asset management platform, with an option to expand further.
Shares of Sembcorp closed 2.4 per cent or S$0.11 lower at S$4.51 on Monday.
