Sembcorp swings back to black with $46 million first-half profit

SINGAPORE (THE BUSINESS TIMES) – Sembcorp Industries has swung back into the black with a $46 million net profit for the first half ended June 30, from a net loss of $131 million in the year-ago period.

This came as the energy and urban solutions provider’s turnover rose 26 per cent to $3.29 billion for the period, from $2.61 billion the year prior on a continuing operations basis. The increase came mainly from the group’s conventional energy segment, which continued to be a key contributor.

The results translate to earnings per share of 2.58 cents from continuing operations, from a loss per share of 3.31 cents the year before.

Without exceptional items, group net profit would have been $252 million. The group had recognised $206 million in exceptional items due to a $212 million impairment made for its 49-per-cent-owned Chongqing Songzao coal-fired power plant in China.

An interim dividend of two cents per share has been declared for first half of this year, compared with no interim dividend for the first half of last year. The interim dividend will be paid out on Aug 24, after the record date on Aug 17.

Shares of Sembcorp, an energy and urban solutions provider, closed three cents, or 1.5 per cent, lower at $2.03 on Thursday.