Written by The Edge
Sembcorp Industries reported a 16% growth in net profit attributable to shareholders of the company for the first six months of 2010 (1H2010). Group net profit was $320.1 million compared to $275.5 million in 1H2009, with all business units showing growth. 1H2010 turnover stood at $4.5 billion, while return on equity was a strong 18.4%.
In the second quarter of 2010 (2Q2010), group net profit grew 14% from $141.9 million to $161.3 million, while turnover was $2.1 billion compared to $2.4 billion in 2Q2009.
Marine’s contribution to group net profit grew 26% from $85.1 million to $107.5 million, while Utilities’ net profit increased 8% from $47.9 million to $51.6 million. In 2Q2010, net profit from Utilities’ Singapore operations grew 11%, while its earnings from China, Vietnam and the UAE grew 23%.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, says: “Sembcorp’s healthy first-half profit growth demonstrates the ability of our energy, water and marine businesses to deliver good performance. We also successfully acquired Cascal, which has transformed Sembcorp into a global water service provider, and made progress in expanding shipyard capacities in Singapore, India and Brazil. With operations in 17 countries across six continents, and a presence in some of the world’s fastest growing economies, Sembcorp is well-positioned to continue to expand our businesses internationally.”
Sembcorp Industries says in FY2010, the performance of its Utilities’ operations is expected to remain steady excluding one- off items. The consolidation of Cascal as a subsidiary under Sembcorp Utilities with effect from July 9, 2010 is not expected to have a material impact on FY2010 results. Marine expects to achieve satisfactory results for FY2010. In FY2010, the Industrial Parks and Environment businesses are expected to perform better than FY2009.
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