Sembcorp net profit at $46m in first half

Net profit before exceptional items went up at a nice 69% at $252m.

Sembcorp Industries had a net profit of $46m for the first half of 2021, making up for the $42m net loss reported for the same period last year.

Net profit before exceptional items was up 69% at $252m, driven by a higher contribution from its conventional energy segment. Exceptional items cost $206m, due to an impairment of $212m made for the 49% owned Chongqing Songzao coal-fired power plant in China.

“Whilse we delivered a resilient underlying performance in the first half of 2021, significant uncertainties remain across markets with the COVID-19 pandemic. Despite the challenges ahead, we will press on with the strategic transformation of our portfolio from brown to green and deliver long-term value and growth for our stakeholders,” said Sembcorp CEO and President Wong Kim Yin in a bourse disclosure.

Its conventional energy segment recorded a net profit of $185m before exceptional items, driven by better performance in Singapore and India. Its renewables segment had a net profit of $24m, $9m less than last year’s, due to lower wind resources for its wind energy assets in India.

An additional 105 megawatts (MW) of renewable energy products was secured in Singapore and Vietnam, and 78 MW of renewable capacity installed, for the first half.

Moving forward, Sembcorp expects a continued negative impact from changes in customer profile in the UK and Singapore, and a loss of income from divested assets in Panama and Chile.

It flagged high market volatility and higher fuel costs as a downside risk for its conventional energy segment. There will also be planned maintenance shutdowns in its plants in Singapore, Myanmar, and India in the second half.

It plans to continue transforming its portfolio to focus on sustainable energy.