Sembcorp Industries Q3 profits slipped 11.6% to $82.33m

It blamed its marine segment upon the sale of a semi-submersible and continued low business volume.

Sembcorp Industries saw its profits fall 11.6% YoY to $82.33m in Q3 from $93.14m in the previous year, an announcement revealed. However, its revenue jumped 36.3% to $3.02b from $2.22b in 2017.

It noted that the sale of semi-submersible West Rigel and an overall continued low business volume which impacted the absorption of overhead costs from its marine segment were to blame for net loss in Q3.

The marine division saw a net loss of $17.93m in Q3 from $60.41m in 2017, according to its financial statement.

The firm saw similar results in H1 with profits dipping 7.9% to $158.57m which it also mainly attributed to its marine business.

Also read: Sembcorp Industries H1 profits dipped 7.9% to $158.57m

Sembcorp’s urban development business on the other hand continued to perform well as it delivered a steady profit of $53.1m YTD which was mainly backed by land sales in Vietnam and China.

Meanwhile, its utilities business continued to be the biggest contributor to profits, with revenue jumping 26.7% to $1.78b in Q3 from $1.41b the previous year, the report highlighted.

The increase was due to higher revenue in Singapore which benefited from higher High Sulphur Fuel Oil (HSFO) price, higher volume and prices for India, higher generation from Teesside and contribution from UK Power Reserve (UKPR) that was acquired in Q2 and contribution from its Changzi water treatment plant in China, the company said.

Sembcorp continues to remain cautious yet positive on its business outlook amidst rising trade and geopolitical challenges.

“Our focus continues to be on lifting performance and investing in capabilities in line with our strategy to reposition in a rapidly changing global energy market,” Sembcorp president and CEO Neil McGregor said.