Sembcorp's utilities segment in Singapore predicted to drop 10%

But here's a bit of good news.

According to CIMB, it expects a 10% yoy dip in Sembcorp Singapore utilities’ profit for FY13 and a flat growth in FY14.

Here's more:

However, upside can come from 1) the new Bayan cogen (400MW) plant contributing to capacity despatch and profit by 1Q14; and 2) favourable CFDs for bilateral contracts out of the wholesale market (30% of SCI’s power sale).

Stripping the S$8m one-off effects of the strategic fuel sale and settlement for CFDs, Singapore’s net profit of S$61m can be sustained going forward as it has taken the impact of the 15% dip in power prices.

Assuming no significant retreat in power prices, we can see Singapore utilities’ net profit growing by 3% to S$244m in FY14. This is still not including the additional capacity from its 400MW Bayan cogen plant that will be available by 1Q14.