Sembcorp Industries has reported earnings of $233 million for 2HFY2021 ended Dec 2021, from a loss of $866 million in the year earlier period. Revenue in the same period was up 59% to $4.5 billion.
The company attributes part of the improved earnings to the so-called conventional energy segment that did “exceptionally well” in the last three months of 2021, when energy prices surged across the board.
For the whole of FY2021, earnings came in at $279 million, versus a loss of $997 million incurred in FY2020. Revenue was up 43% to $7.8 billion.
The drag on the FY2020 earnings were partly from loss on discontinued operations, specifically, Sembcorp Industries' stake in Sembcorp Marine, which it used to have a majority stake but has since separated.
The company plans to pay a final dividend of three cents per share, bringing the total dividend for FY2021 to five cents. For FY2020, the company paid four cents.
The company is in the midst of shifting its business focus to renewable energy related activities.
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Wong Kim Yin, group president and CEO, says the company is “making good progress.”
Last year, the company secured 2.9GW of new renewable energy projects across key markets.
Upon completion of the 658MW portfolio acquisition in China in the first half of 2022, gross renewables capacity installed and under development will reach 6.1GW.
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“Our focus on execution is delivering results and we are pushing confidently towards our target of 10GW of gross installed renewables capacity by 2025,” says Wong.
In its earnings, the company cautions that the underlying performance of the segment continues to be subject to global energy market conditions and commodity prices.
