Sembcorp Industries Q2 profit edges up

Q2 profit edges up

Marine, utilities units help earn conglomerate $142m

by Kelvin Chow
05:55 AM Aug 07, 2009

NET profit of Mainboard-listed conglomerate, Sembcorp Industries (SCI), edged-up 3 per cent to $141.9 million for its second quarter, thanks to the higher earnings from its utilities and rig building divisions.

In comparison, SCI recorded a $138.2 million net profit in the same three-month period a year ago.

However, group revenue fell to $2.43 billion in the same quarter from $2.58 billion a year ago due to lower contributions from its environment and industrial parks business. The group said yesterday that its utilities and marine business segments accounted for 94 per cent of total profits. Profit contribution from its utilities segment saw an 11 per cent increase to $47.9 million while its marine business contributed $85.9 million, up 9 per cent.

Mr Tang Kin Fei, SCI's chief executive said: "Sembcorp's healthy performance in this difficult global business environment reflects the underlying strength of our businesses." For example, its marine business has a net orderbook of $7.9 billion with completions and deliveries until early 2012. "Long-term fundamentals driving future deepwater activities continue to be strong," Mr Tang said in a statement.

Sembcorp also said that while global economic and financial environment appears to have improved, its outlook remains uncertain. However, the company said that it is "committed to deliver satisfactory operating results for the year."