Sembcorp’s net profit up 2% to S$809m in 2011

The group’s Marine segment continues to be its main contributor, accounting for 55% of Group net profit.

Sembcorp Industries reported that its net profit for the full year 2011 grew 2% from S$792.9 million in 2010 to S$809.3 million, while turnover was up 3% from S$8.8 billion in the previous year to S$9.0 billion.

The group’s main profit contributors continued to be its Utilities and Marine businesses, which accounted for 37% and 55% of Group net profit respectively. Our Utilities business delivered robust profit growth in FY2011, with net profit growing 32% to S$304.4 million.

Record profits for the business were driven by good operating performance in Singapore, China and Middle East & Africa. Marine’s FY2011 net profit contribution to the Group was S$456.2 million compared to S$492.8 million in FY2010.

Return on equity for the Group was 20.4% and earnings per share amounted to 45.3 cents for the year. Economic value added was a positive S$728.2 million while cash and cash equivalents stood at S$3.0 billion.

In 4Q2011, Group net profit increased 10% to S$251.9 million against the previous year. Utilities delivered a strong 62% increase in net profit to S$88.2 million, growing its contribution to the Group’s net profit to 35% from 24% in 4Q2010. Marine’s 4Q2011 net profit was S$138.3 million, compared to S$145.8 million last year.

The Board of Directors proposed a final tax exempt one-tier dividend of 17.0 cents per ordinary share comprising an ordinary dividend of 15.0 cents and a bonus dividend of 2.0 cents per ordinary share for FY2011. If approved by shareholders, this will be paid on May 15, 2012.