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Sembcorp Posts Underlying FY2020 Net Profit of S$301 Million Amid a Challenging Year

Wednesday, 24 February 2021 | 01:00

Sembcorp Industries (Sembcorp) posted a Group net profit of S$301 million for full year 2020 (FY2020) excluding exceptional items and the discontinued Marine business, compared to S$456 million in FY2019. Including the Marine business and exceptional items, the Group recorded a net loss of S$997 million for FY2020, compared to a profit of S$247 million in FY2019. This was mainly due to a non-cash, non-recurring fair value loss of S$970 million recorded following the completion of the distribution in specie of ordinary shares in the capital of Sembcorp Marine (the Distribution) in September 2020 and a net loss of S$184 million from the Marine business prior to the Distribution. In addition, the Group recorded exceptional items of negative S$144 million.

Amid a challenging global market environment, underlying performance of the Energy and Urban businesses remained resilient and the Group continued to deliver positive operating cash flow. Net profit before exceptional items for the Energy business was S$297 million compared to S$360 million in FY2019. The Urban business’ net profit before exceptional items was S$60 million compared to S$117 million in FY2019. Including exceptional items, the Energy and Urban businesses posted net profit of S$160 million and S$92 million compared to S$195 million and S$117 million in FY2019 respectively.

In view of the Group’s underlying profitability, a final and total dividend of 4.0 cents per ordinary share for 2020 is proposed, subject to shareholders’ approval.

Significant challenges remain for economies around the world. Uncertainties continue to persist with regard to the strength of recovery from the COVID-19 pandemic.

Underlying performance of the Group will also be impacted by changes in customer profile in the United Kingdom and Singapore, as well as the loss of income from divested assets in Panama and Chile.

The Group will continue to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable development. In 2021, approximately 200MW of renewable energy capacity is expected to come onstream.
Source: Sembcorp Industries

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