The loss resulted from the fair value of $1.60 billion being lower than the carrying amount of SembMarine’s $2.72 billion as at June 30, 3030.
SEE:Sembcorp Industries and SP Group to jointly develop environmental sustainability platform
According to Sembcorp, the loss will be adjusted based on the carrying value of SembMarine shares up to Sept 11, 2020.
The group also announced that there will be impairments of some $89 million in its 2HFY2020 financial statements, arising from its periodic assessment of the recoverable amounts based on expected future cash flows of its assets.
The impairment comprises the $21 million impairment for utilities assets on Jurong Island, an $8 million impairment for a dedicated wastewater treatment plant in Nanjing, China, as well as a $60 million impairment of UK Power Reserve assets.
The group adds that it expects to maintain positive operating cash flow in 2020 due to the underlying profitable performance of its Energy and Urban businesses.
Shares in Sembcorp closed 1 cent lower or 0.5% down at $1.85 on Dec 4.
