SEMBCORP Industries has posted a 15 per cent year-on-year rise in net profit to S$412 million for the second half year ended Dec 31, 2023.
This was mainly due to higher contributions from the gas and related services, as well as renewables segments, the energy group said on Tuesday (Feb 20).
Earnings per share stood at 23.12 Singapore cents for the half year, up from 20.09 cents the previous year.
Revenue for the period fell 14 per cent to S$3.4 billion, from S$3.9 billion a year earlier. This was due to lower gas prices, as well as lower power prices from the gas and related services segment, offset by higher turnover from the renewables and other businesses segments.
The group proposed a final dividend of eight Singapore cents, bringing the total dividend for FY2023 to 13 cents. Once approved by shareholders at the Apr 23 annual general meeting, the dividend will be paid on May 9, after the record date on Apr 30.
For the full year ended Dec 31, 2023, net profit was up 11 per cent to S$942 million, while revenue was down 10 per cent to S$7 billion.
Wong Kim Yin, group president and chief executive officer of Sembcorp, noted that 2023 experienced strong growth momentum in the renewables business.
“The signing of multiple long-term power purchase agreements creates strong recurring income for our gas and related services business, providing earnings certainty to fund our renewables growth.
“We are encouraged by our strong performance in 2023 and will focus on the execution of our 2024 – 2028 strategy, to transform our portfolio from brown to green and drive energy transition.”
Net profit before exceptional items of the gas and related services segment increased 30 per cent to S$809 million in FY2023, mainly driven by higher power prices in Singapore.
For the renewables segment, full year net profit before exceptional items grew 42 per cent to S$200 million, led by contributions from acquisitions in China and India, as well as higher contributions from energy storage and solar operations in Singapore.
The integrated urban solutions segment registered a 19 per cent drop in the full year net profit before exceptional items at S$121 million. This was mainly due to lower commercial and residential land sales in the Vietnam Urban business, as well as the cessation of a public cleaning contract in the waste business, said the group.
Shares of Sembcorp closed on Monday down 0.2 per cent, or S$0.01, to S$5.75.
