Sembcorp suffers 24% net profit loss in Singapore
Here's why analyst isn't surprised.
According to CIMB, Sembcorp Singapore’s 3Q13 net profit dipped 23-24% qoq and yoy to S$53m, within its expectations. The yoy weakness was mainly due to a 19% dip in spark spreads and the expiry of favourable gas sale contracts in 3Q13.
Here's more:
While spark spreads remained stable qoq, the lower qoq performance was affected by higher maintenance and manpower costs in 3Q13. We have factored in zero growth for Singapore operations in FY14.