Sembcorp Industries profits crashed 84.6% to $22.8m in Q4

It was hit by a $35m loss due to the poor performance of its marine rig business.

Sembcorp Industries’ profit crashed 84.6% YoY to $22.8m in 4Q2017, bringing its full-year net profit to $230.8m, which dropped 41.6% YoY.

OCBC Investment Research noted that SCI’s results were dragged by poorer performance in marine and one-off items in utilities. Excluding exceptionals worth about S$120.8m in utilities, the segment saw a 25% drop in core net profit to about S$260.8m in FY17. Sembcorp Marine (Sembmarine) was hit by a loss of $34.99m in Q4, no thanks to the poor performance of its rigs & floaters and offshore platforms businesses.

Meanwhile, SCI announced that it has initiated the process of an IPO of Sembcorp Energy India, which is “no surprise to the market,” OCBC analyst Low Pei Han said. The firm also plans to divest a number of peripheral utilities assets which are estimated to deliver cash proceeds of up to $0.5b. The utilities business will also focus on growing three business lines: Gas & Power, Renewables & Environment, and Merchant & Retail.

A final dividend of S$0.02/share has been proposed, bringing its full-year dividend to 5 cents per share.