Sembcorp Industries has new growth engines: DBS

With the Singapore divison cooling which of its two segments are expected to fire up?

Its Middle East and North Africa projects, for one, will contribute more to growth. Industrial parks will also take the lead, said DBS, on the back of lucrative land sales in one of its China parks.

Here's more from DBS:

Strong finale.4Q11 group profit of S$251m beat our S$216m forecast as both. Utilities and Marine outperformed. Utilities headline profit of S$88m (+49% y-o-y, +12% q-o-q) beat our S$82m forecast despite weaker than expected sales of S$1222m (+17% y-o-y, -6% q-o-q). Excluding impairment charges, core Utilities profit will be closer to S$90m. Singapore continued to power ahead with firm power spread and additional gas inflow in Nov. Salalah 1st phase and Fujairah also drove MENA higher by 31% y-o-y. Cascal integration was remarkable with the unit earning S$38.8m, up from S$11.8m. As a result, Water was the fastest growing segment with a 59% y-o-y surge in profit to S

$79.7m, rising to almost 10% of group profit. Singapore steady while MENA and Industrial parks will drive upside in FY12. Although SembGas expansion will contribute more in 2012, the full benefit will be negated by a maintenance shutdown of the cogen plant in Jurong Island. Hence, we scale down growth for Singapore and see MENA growing as Salalah contributes more from April when 2nd phase gets completed. The expected launch of land sales for the Nanjing Eco Hi-tech park will also drive growth for Industrial Parks. Together with higher earnings forecast for Marine, we raised FY12F by 3%.