SINGAPORE (THE BUSINESS TIMES) – Sembcorp Industries on Friday (Aug 5) posted a surge in net profit to $490 million for the first half year ended June 30, from $46 million a year ago, with higher contributions from its renewables and conventional energy segment.
Before exceptional items, which include gains on the disposal of the Subic Water & Sewerage and write-back of impairment upon disposal of Biowater Technology, net profit for H1 2021 would be $252 million, representing a 94 per cent gain year on year.
Earnings per share jumped to 27.48 cents from 2.58 cents previously, while H1 turnover rose 45 per cent to $4.76 billion from $3.29 billion.
The group also doubled its interim dividend to four cent per ordinary share from two cents last year in view of its “strong underlying performance”.
The dividends will be paid out on Aug 23 after books closure on Aug 17.
Sembcorp noted that its business had performed well in the first half of 2022, mainly driven by the conventional energy segment due to higher electricity prices in Singapore and India, as well as realised gains from favourable gas hedges in Singapore.
Sembcorp said its full-year results are expected to be significantly higher than that for 2021.
It expects performance for its conventional energy business to remain strong in the second half of the year if market conditions seen in the first half remain.
Its renewables business is also expected to be underpinned by a half-year contribution from the China renewables portfolio acquired in H1 2022.
“We remain focused on the execution of our brown to green transformation strategy, to deliver lasting value and growth to our stakeholders,” said Wong Kim Yin, group president and chief executive officer of Sembcorp.
Sembcorp shares jumped nine cents or 3 per cent to $3.10 as at 9.04am on Friday, after its results announcement.