Sembcorp Industries H1 profits dipped 7.9% to $158.57m

It blamed losses in its marine and construction businesses.

Sembcorp Industries is still stuck in the doldrums for the first half of 2018 as its profits dropped by 7.9% to $158.57m from $172.11m last year. However, revenue jumped by 38.6% to $6.1b from $4.4b last year.

According to its financial statement, lower profits were attributed to the losses from the marine and construction businesses. However, utilities net profit jumped 58.1% as India operations contributed a $23.8m profit.

Utilities turnover jumped to $3.2b thanks to its key markets. “Singapore operations benefited from higher HSFO prices, India from higher volume and prices, the UK from higher generation, and China from the contribution of the Changzhi water treatment plant which commenced commercial operation in September 2017,” the company said.

This was offset by lower service concession revenues for Myingyan and Sirajganj in line with the project’s construction progress.

Marine’s turnover jumped by $1.4b higher mainly due to revenue recognition for the delivery of five jack-up rigs and sale of a semi-submersible rig. Excluding the delivery and sale of these rigs, Marine’s turnover would have been 24%.

For Q2, profits soared by 46.8% to $81.92m from $55.82m last year, whilst revenue grew by 46.6% to $3.34b from $2.28b. The increase was mainly from its marine and utilities businesses.

Sembcorp declared an interim dividend of 2 cents per share to be given on 31 August 2018.