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Sembcorp Announces H1 Result

Power News - Published on Tue, 20 Aug 2019

Image Source: BW
Sembcorp Industries posted a net profit of SGD 191 million for the first half of 2019 (1H2019), up from SGD 159 million in 1H2018, on improved performance from the Energy business. Turnover was SGD 4.9 billion compared to SGD 6.1 billion in 1H2018.

BUSINESS UPDATES
1. The Energy business’ net profit increased by 14% to SGD 177 million in 1H2019 compared to SGD 155 million in 1H2018, driven mainly by good performance in Southeast Asia (ex-Singapore), China and India.

o Strengthening Singapore home base with integrated energy offering, evaluating investment decision on a new combined heat and power facility
Singapore solar power capacity grew by over 40% year-to-date to 166 megawatt peak. Sembcorp is a renewable energy partner to companies in Singapore including YCH Logistics, Cache Logistics Trust, Experia Events and CapitaLand.
The nationwide launch of the Open Electricity Market was in May 2019. We have secured 60,000 customers to date.
Sembcorp is evaluating an investment decision to replace one of the combined heat and power facilities on Jurong Island with more efficient technology.
Major maintenance shutdowns for the power generation assets will take place in the second half of 2019.

o Profitability in India continued to improve with 1H2019 net profit growing by 46% to SGD 35 million
An equity injection of SGD 101.6 million was undertaken to support the growth of the India renewables business.
The business commissioned 200 megawatts out of 550 megawatts of the SECI 2 and SECI 3 wind power projects. SEIL currently has 450 megawatts of operational SECI wind capacity, the largest generating capacity amongst SECI wind developers.

2. The Urban business posted a net profit of SGD 18 million compared to SGD 45 million in 1H2018, with stable contribution from Vietnam and lower contribution from China.

3. The Marine business recorded a loss of SGD 6 million in 1H2019 compared to SGD 32 million net loss in 1H2018, mainly due to continued lower overall business volume offset by margin recognition from newly secured production floater projects and the delivery of a rig. In June, Sembcorp Industries provided a SGD 2 billion subordinated loan facility to Sembcorp Marine to strengthen its financial position.

Source :

Posted By : Ratan Singh on Tue, 20 Aug 2019
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