Sembcorp Industries net profit up 37% YoY in 3Q

More sparks expected from utilities.

Here's from DBS Vickers:

2QFYMar13 results slightly ahead.

Headline net profit of S$17.3m (+37% y-o-y, +4% q-o-q) was  slightly ahead of our estimates, due to growth in crane  rental businesses and JV/associates income. Tower and  mobile crane rental businesses grew 27% and 52% y-oy on the back of higher fleet utilisation. Gross margins  were relatively stable at 37%. JV and associates income contribution improved, aided by a turnaround from Papua New Guinea’s JV.

1H13 earnings now account  for 54% of our full year forecasts. TAT declared an interim dividend of 1Scent. 

Raise FY13F/14F earnings by 15%/16% on better  utilisation, rates.

We are positive on fleet utilisation  and rental rates going forward, supported by robust crane demand in contrast with tight crane supply in the market. Regional construction projects and oil & gas  projects in Australia remain buoyant, while limited production capacity of crane manufacturers will ensure that crane rental demand continues to outstrip crane supply. Hence, we remain optimistic on TAT’s fleet utilization and rental rates going forward. We revise our earnings by 15%/16% for FY13F/FY14F in  anticipation of higher utilisation and rental rates