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MarketScreener Homepage  >  Equities  >  SINGAPORE EXCHANGE  >  SembCorp Industries Limited    SCIL   SG1R50925390

SEMBCORP INDUSTRIES LIMITED

(SCIL)
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SembCorp Industries : 1H2019 Net Profit Up 20% at S$191 Million SCI_1H2019_Financial-Statements.pdf SCI_1H2019_Results Slides.pdf SCI_1H2019_Press Release.pdf

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08/14/2019 | 06:37am EDT

PRESS RELEASE

Sembcorp Industries 1H2019 Results

SEMBCORP 1H2019 NET PROFIT UP 20% AT S$191 MILLION

Singapore, August 14, 2019 - Sembcorp Industries (Sembcorp) posted a net profit of S$191 million for the first half of 2019 (1H2019), up from S$159 million in 1H2018, on improved performance from the Energy business. Turnover was S$4.9 billion compared to S$6.1 billion in 1H2018.

Quote from Neil McGregor, Group President & CEO of Sembcorp Industries:

"With year-on-year earnings growth delivered in the first two quarters of the year, Sembcorp Group achieved a net profit growth of 20% in 1H2019, despite the challenging operating environment for the Marine business.

"This performance was underpinned by our Energy business. We continue to make progress in our strategy to reposition the business to become a more sustainable integrated energy player in the global energy transition. Our focus remains on lifting performance, building capabilities and sharpening our competitive edge. We strengthened our renewables portfolio, with our Singapore solar power capacity growing over 40% to 166 megawatt peak and commissioned 200 megawatts of wind assets in India. We are also in the final stages of making a replacement decision on one of our combined heat and power facilities in Singapore to ensure we have a fleet of high efficiency assets to better serve our customers there."

BUSINESS UPDATES

  • The Energy business' net profit increased by 14% to S$177 million in 1H2019 compared to S$155 million in 1H2018, driven mainly by good performance in Southeast Asia (ex- Singapore), China and India.
    o Strengthening Singapore home base with integrated energy offering, evaluating investment decision on a new combined heat and power facility

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  • Singapore solar power capacity grew by over 40% year-to-date to 166 megawatt peak. Sembcorp is a renewable energy partner to companies in Singapore including YCH Logistics, Cache Logistics Trust, Experia Events and CapitaLand.
  • The nationwide launch of the Open Electricity Market was in May 2019. We have secured 60,000 customers to date.
  • Sembcorp is evaluating an investment decision to replace one of the combined heat and power facilities on Jurong Island with more efficient technology.
  • Major maintenance shutdowns for the power generation assets will take place in the second half of 2019.
    1. Profitability in India continued to improve with 1H2019 net profit growing by 46% to S$35 million
      • An equity injection of S$101.6 million was undertaken to support the growth of the India renewables business.
      • The business commissioned 200 megawatts out of 550 megawatts of the SECI 2 and SECI 3 wind power projects. SEIL currently has 450 megawatts of operational SECI wind capacity, the largest generating capacity amongst SECI wind developers.
  • The Urban business posted a net profit of S$18 million compared to S$45 million in 1H2018, with stable contribution from Vietnam and lower contribution from China.
  • The Marine business recorded a loss of S$6 million in 1H2019 compared to S$32 million net loss in 1H2018, mainly due to continued lower overall business volume offset by margin recognition from newly secured production floater projects and the delivery of a rig. In June, Sembcorp Industries provided a S$2 billion subordinated loan facility to Sembcorp Marine to strengthen its financial position.

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FINANCIAL SUMMARY

S$ million

2Q2019

2Q2018

Δ%

1H2019

1H2018

Δ%

Turnover

2,372

3,344

(29)

4,851

6,102

(21)

Profit from Operations1

232

192

21

455

405

12

Net Profit

Energy

92

85

8

177

155

14

Urban

11

35

(69)

18

45

(60)

Other Businesses

7

1

NM

14

(1)

NM

Group Corporate

(6)

(5)

(20)

(12)

(8)

(50)

Net Profit (excluding Marine)

104

116

(10)

197

191

3

Marine

(6)

(34)

82

(6)

(32)

81

Net Profit

98

82

20

191

159

20

EPS (cents)

5.0

3.9

26

9.7

7.6

28

1 Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs' results (net of tax)

INTERIM DIVIDEND

The board of directors announces an interim dividend of 2.0 cents per ordinary share, which will be paid on September 4, 2019.

GROUP OUTLOOK

The Energy and Urban businesses continue to underpin the Group's performance. The market environment continues to be challenging for the offshore and marine sector and Sembcorp Marine is expecting full year losses. While there are downside risks to global economic growth expectations with heightened policy uncertainty and trade tensions, the Group's diversified business portfolio is expected to provide resilience to weather the prevailing macroeconomic uncertainties.

The Group remains focused on executing strategy, improving performance as well as strengthening its balance sheet, and is on track to deliver on its divestment programme.

- End -

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For analysts' and media queries, please contact:

Analysts

Media

Ling Xin Jin (Ms)

Lim Seng Jin (Mr)

Assistant Vice President

Vice President

Group Strategic Communications &

Group Strategic Communications &

Sustainability

Sustainability

DID: +65 6723 3384

DID: +65 6723 3434

Email: ling.xinjin@sembcorp.com

Email: lim.sengjin@sembcorp.com

ABOUT SEMBCORP INDUSTRIES

Sembcorp Industries is a leading energy, marine and urban development group, operating across multiple markets worldwide.

As an integrated energy player, Sembcorp is poised to benefit from the global energy transition. With a strong track record in developing and developed markets, we provide solutions across the energy and utilities value chain, with a focus on the Gas & Power, Renewables & Environment, and Merchant & Retail sectors. We have a balanced energy portfolio of 12,500 megawatts, including thermal power plants, renewable wind and solar power assets, as well as biomass and energy-from- waste facilities. In addition, Sembcorp is a world leader in offshore and marine engineering, as well as an established brand name in urban development.

Sembcorp Industries has total assets of over S$24 billion and over 7,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices, as well as the SGX Sustainability Leaders Index and the Dow Jones Sustainability Asia Pacific Index.

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Disclaimer

SCI - SembCorp Industries Ltd. published this content on 14 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2019 10:36:09 UTC

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Financials (SGD)
Sales 2019 10 045 M
EBIT 2019 798 M
Net income 2019 382 M
Debt 2019 9 683 M
Yield 2019 2,21%
P/E ratio 2019 10,5x
P/E ratio 2020 8,44x
EV / Sales2019 1,36x
EV / Sales2020 1,23x
Capitalization 3 986 M
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Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 2,92  SGD
Last Close Price 2,23  SGD
Spread / Highest target 68,2%
Spread / Average Target 31,0%
Spread / Lowest Target -7,17%
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Managers
NameTitle
Neil Garry McGregor Group President, CEO & Director
Kong Hua Ang Chairman
Meng Poh Ng Head-Global Operations Group
Graham John Cockroft Group Chief Financial Officer
Keng Boon Siah Chief Technology Officer
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