Sembcorp Industries (Sembcorp) delivered a healthy performance for the first half of 2014 (1H2014). Net profit grew 6% to S$363.9 million from S$342.2 million in 1H2013, while turnover increased 6% to S$5.2 billion from S$4.8 billion in the previous year. The Utilities and Marine businesses continued to be the main profit contributors, accounting for 51% and 42% of Group net profit respectively.
In 1H2014, the Utilities business delivered a net profit of S$184.4 million compared to S$201.3 million in 1H2013. While its overseas operations grew, the business performance was affected by intense competition in the Singapore power market. The Marine business reported a net profit of S$154.1 million, an increase of 4% from S$147.7 million, while the Urban Development business reported a 136% growth in net profit to S$24.3 million from S$10.3 million in 1H2013.
Return on equity (annualised) for the Group was 13.7% and earnings per share amounted to 20.1 cents. Economic value added was a positive S$234.9 million while cash and cash equivalents stood at S$2.2 billion.
In the second quarter of 2014 (2Q2014), Group net profit grew 8% to S$179.0 million from S$165.4 million in 2Q2013, while turnover increased 1% to S$2.5 billion.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, In the first half of 2014, we continued to make good progress in the execution of our pipeline of projects which will underpin the future growth of the Group. We have completed the construction of our 400-megawatt cogeneration plant in Singapore, while the first unit of our 1,320-megawatt power plant in India is currently undergoing pre-commissioning. Meanwhile, our Marine business shipyard in Brazil remains on track to commence initial operations later this year.