Sembcorp Industries' net profit after exceptional items and discontinued operation was $540 million in 1HFY2024 for the six months to end-June, 2% higher y-o-y compared to $530 million in 1HFY2023. The group's 1HFY2024 revenue fell by 12% y-o-y to $3.2 billion, and net profit before exceptional items (EI) fell by 11.6% y-o-y to $532 million.
Net profit before EI for the Gas and Related Services segment was $339 million, compared to $435 million in 1HFY2023. 99% of the group’s gas-fired power portfolio in Singapore is contracted, backed by long-term power purchase agreements.
Net profit before EI for the Renewables segment decreased 13% to $104 million in 1HFY2024, due to higher curtailment in China. This was offset by contributions from new acquisitions. The Integrated Urban Solutions segment posted net profit before EI of $70 million, up 43% y-o-y, due to a recovery in Vietnam and Indonesia land sales.
The board of directors announced an interim dividend of 6 cents per share (up 1 cent y-o-y), to be paid on Aug 22.
With the completion of the planned maintenance for the cogeneration plant in Singapore and a significantly contracted position, earnings for the Gas and Related Services segment are expected to be higher in 2HFY2024 compared to the first half.
However, earnings for the Renewables segment are expected to be lower, due to seasonality in the second half of 2024, partially offset by new project contributions. Additionally, weak demand in in China could continue to negatively impact renewable energy demand.
See also: GKE Corp expects 1HFY2025 earnings to be a 'significant' increase over 1HFY2024
Shares in Sembcorp opened 14 cents higher, or 3.10% up, at $4.65 on Aug 6.
