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Sembcorp Industries suffers 13.3% profit drop to $165.4m
Slower order book in marine segment.
According to OCBC, Sembcorp Industries (SCI) reported a 6.3% YoY fall in revenue to S$2.5b and a 13.3% decrease in net profit to S$165.4m in 2Q13, such that 1H13 figures accounted for about 45% of the firm's full year estimates.
There was a slower order book drawdown in the marine division in the quarter as fewer projects achieved their initial recognition milestones, while 1H13 revenue from the utilities division accounted for about 47% of our full year estimate. Utilities and marine contributed 53% and 39% of SCI’s net profit in 1H13, respectively.
Here's more from OCBC:
SCI saw a S$24.5m loss in fair value of available-for-sale (AFS) assets, mainly due to Gallant Venture’s drop in share price. Recall that the investment was reclassified as an AFS financial asset on 30 Apr 2013 with SCI’s dilution in stake.
Excluding this one-off item, 2Q13 net profit would have been flat vs a year ago. Looking ahead, we understand that subsequent upward revaluations (if any) will be recorded under comprehensive income and will not impact the income statement.
Sembcorp Marine, which competes with crosstown rival Keppel Corporation Ltd in winning orders for offshore drilling rigs, said demand for rigs is expected to remain strong but competition from Chinese and Korean yards will impact margin.
Sembcorp Marine's order book stood at S$12.7 billion, down from S$13.6 billion at the end of the last quarter. - Reuters
Singapore-based Sembcorp eyes stake in NCC Power Projects
HYDERABAD: A Singapore-based company is in advanced talks to buy a power project in Andhra Pradesh, a rare instance of foreign interest in India's infrastructure sector which has been in the doldrums.
A unit of Sembcorp, which is backed by Singapore's sovereign investor Temasek Holdings, is expected to buy a majority stake in NCC Power Projects for $250 million (about Rs 1,500 crore), according to two people with direct knowledge of the negotiations. The deal is expected to be signed in about a month.
NCC Power Projects, a joint venture between Hyderabad-based infrastructure firms NCC and Gayatri Projects, is developing a 1,320MW coal-based thermal power project in Andhra's Nellore District.
While the talks are for the 55% that NCC owns in the project-which is about half complete now and is expected to be ready by March 2015-there are indications that Gayatri ProjectsBSE 0.63 % could sell part of the 45% stake it owns, a source said.
India's infrastructure sector has been mostly shunned by foreign investors because of troubles related to clearances and problems with land acquisition. Power projects have also suffered because of difficulties in sewing up supply of fuel.
But analysts said that any investment by Sembcorp Utilities may not indicate a revival. " This could be one-off deal in the Indian power sector," said Anubhav Gupta, an analyst with the Indian arm of Singapore-based Kim Eng Securities. " I don't think this will trigger investors' interest in power companies." Kim Eng has a negative view on the power sector.
Sembcorp did not reply to an email seeking its comment and an NCC spokesman declined to comment. Gayatri Projects Managing Director Tikkavarapu Sandeep Reddy, who is currently in Singapore, said, " Nothing has been crystallised yet." The deal will be the third major investment in India for Sembcorp, which had revenues of S$10.2 billion (about Rs 48,000 crore) in fiscal 2012, and its second in the country's power sector.
Its previous investments include Kakinada Seaports and Thermal Powertech Corp, a subsidiary of Gayatri Projects. If a deal is reached it will take the total portfolio of Sembcorp-which bought 49% of Thermal Powertech's 1,320MW power project for 1,042 crore in 2010-to 2,640MW, making it the third-largest foreign player in the Indian power sector after Hong Kong's CLP Holdings and US-based AES Corporation.
" Gayatri may either choose to retain 45% stake in NCC Power Projects or consider diluting a minority stake to Sembcorp," said one of the sources, requesting anonymity. " A decision is yet to be made." In February, Thermal Powertech had agreed to buy about 1 MT of coal a year for 10 years from Indonesia's PT Bayan Resources. The contract is expected to commence in 2014. " If the deal happens at decent valuations, it will help NCC reduce its overall debt burden, bring down interest burden and improve its profit margins," said analyst Teena Virmani of Kotak Securities.
Sembcorp Industries - 1Q13 – Flat quarter, as expected - OUTPERFORM - TP $5.80 - MacQ
Singapore Utilities weakens positioning for regional growth - HOLD - TP $5.25 - DB
SembCorp - Flat results as utility fights rising capacity - BUY - TP $6.00 - NOMURA
SembCorp - 1Q13: Expect Further Pressure on Singapore Utilities - OVERWEIGHT - MS
SembCorp IndustUtilities fell less than expected HOLD Price Target : 12-month S$ 4.80 (Prev S$ 5.20) by DBS Vickersries (SCIL.SI) Results in Line with Expectations - BUY - TP $6.00 - CITI
krisluke ( Date: 09-May-2013 09:31) Posted:
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despite lower sales. FY13/14F earnings cut by 13%/2%
mainly for Marine earnings downgrade and fair value loss for
Gallant Venture. TP reduced to S$4.80 (Prev S$ 5.20),
maintain HOLD.
krisluke ( Date: 09-May-2013 10:07) Posted:
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Long-term positive outlook on utilities remains intact. UOBKH reduce target price marginally from S$6.10 to S$5.90
Sembcorp Industries: Building a Strong Recurring Base Buy TP $5.74 KE
Fruitful overseas operations - (OUTPERFORM - Maintained | S$4.98 - Tgt. S$5.95 Conglomerate) - CIMB
Sembcorp Posts 1Q2013 Net Profit of S$176.9 Million
SINGAPORE, May 8, 2013 – Sembcorp Industries (Sembcorp) reported a net profit of S$176.9 million and turnover of S$2.4 billion in the first quarter of 2013 (1Q2013), comparable to 1Q2012’s net profit of S$176.7 million and turnover of S$2.4 billion. Sembcorp’s main profit contributors, the Utilities and Marine businesses, accounted for 49% and 39% of Group net profit respectively.
The Utilities business’ net profit was S$89.4 million compared to S$99.0 million in 1Q2012. The business was impacted by lower contribution from Singapore, mitigated by better performance from China and the Middle East. The Marine business’ 1Q2013 net profit was up 5% to S$72.0 million from S$68.7 million in 1Q2012, due to higher operating profit, offset by lower contribution from Cosco Shipyard Group. Meanwhile, the Urban Development business posted a net profit of S$6.7 million, an increase from S$4.7 million in 1Q2012.
Return on equity (annualised) for the Group was 14.6% and earnings per share amounted to 9.9 cents for the quarter. Economic value added was S$131.5 million while cash and cash equivalents stood at S$2.1 billion.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “In 1Q2013, we continued to position our company for long-term growth, in particular from our overseas investments. Our Utilities business achieved significant milestones in the execution and development of our pipeline of projects, which will grow our recurring income base. We secured a 25-year power purchase agreement for our coal-fired power plant in India, and a 20-year water purchase agreement for our Fujairah 1 Independent Water and Power Plant in the UAE. Our UK operation was also selected as the preferred bidder to develop a new energy-from-waste facility on our Wilton International site on Teesside. Meanwhile, our Marine business achieved a net orderbook of S$13.6 billion with completions and deliveries stretching till 2019.”
Utilities 2013 will see a full year’s contribution from our newly-acquired power assets in China and the completion of our second woodchip boiler in Singapore in June.
The Utilities business, underpinned by long-term contracts and strong operational performance, will remain focused on the execution of its pipeline of projects and pursuit of new growth opportunities to deliver long-term growth.
Marine Overall, enquiries remain healthy across Marine’s diverse business segments of ship repair, ship conversion & offshore platforms and rig building. However, competition is intense and impacts margin.
Urban Development Group Highlights from Sembcorp’s 1Q2013 Financial Results - END -
FY2013 Outlook
In 2013, the completion of Singapore’s liquefied natural gas (LNG) terminal is expected to increase natural gas supply to the country. In addition, over 2,400 megawatts of new generation capacity is expected to come onstream in 2013 and 2014. The increase in gas supply and generation capacity is expected to intensify competition and may impact the performance of our Singapore operations.
Our Marine business has a strong net order book of S$13.6 billion with completion and deliveries stretching till 2019. This includes S$1.7 billion in rig orders and offshore platform contracts secured since the start of 2013.
The new yard at Tuas will commence operations in the second half of 2013 and the construction of the Brazilian yard is on track.
The Urban Development business is expected to deliver a better operating performance in 2013.
The Group, underpinned by sound business fundamentals and a healthy pipeline of projects and orderbook, continues to be well-positioned to deliver long-term growth.
• Turnover at S$2.4 billion, down 3%
• Profit from Operations at S$313.3 million, up 10%
• Net Profit flat at S$176.9 million
• EPS at 9.9 cents
• ROE (annualised) at 14.6%
*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).
For media and analysts’ queries please contact:
Melissa Yee (Ms)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: melissa.yee@sembcorp.com
Aleve Co (Ms)
Senior Manager
Group Corporate Relations
DID: +65 6723 3178
Email: aleve.co@sembcorp.com
The configuration is mixed.
4.82 is our pivot point.
Our preference: short term rebound towards 5.27.
Alternative scenario: the downside breakout of 4.82 would call for 4.67 and 4.58.
Comment: the RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the share stands below its 20 and 50 day MA (respectively at 4.99 and 5.11).
Supports and resistances:
5.36 *
5.27 **
5.18
4.94 last
4.88
4.82 **
4.67 *
Copyright 1999 - 2013 TRADING CENTRAL
As the largest and most energy-efficient power and water plant in Dhofar, in southern Oman, the Salalah IWPP plays a major role in meeting the growing power and water demand in this region. The first phase of the project was completed in July 2011, the second phase was subsequently completed in the first quarter of 2012, and the third and final phase was completed a few months later.
Two other major independent power projects in Oman--Al Batinah Power Company and Al Suwaidi Power Company--are also expected to offer shares to the investing public. Since both companies signed agreements with the government at some point in 2010, these share offers will probably be seen by next year. Sohar 2 (owned and operated by Al Batinah Power Company) and Barka 3 (owned and operated by Al Suwaidi Power Company) have achieved full commercial operations on April 3 and 4, respectively.
Salalah power company's IPO likely this year
By A. E. James28 April 2013
Muscat: Sembcorp Salalah Power and Water Company, which owns and operates Salalah's $1 billion independent water and power project (IWPP), is planning to float an initial public offering (IPO) this year.
The promoters of the Salalah IWPP, which started full operations last year, are diluting their 35-per cent stake in line with a contractual commitment with the government, which stipulates that an IPO has to be floated within a certain period of signing the agreement. The agreement for the power project was signed in 2009.
" We are on track (for floating the IPO), and all agreements are in place," said a company official, who did not want to be named. However, he declined to comment on the size of the issue or the timeframe for floating the share offer.
Like other independent power producers, the profitability of Sembcorp Salalah is pre-determined and, therefore, is not vulnerable to market fluctuations. The price of natural gas (feedstock for power plants) and the price at which power is sold to Oman Power and Water Procurement (OPWP) Company are all pre-determined through long-term contracts.
Sembcorp Salalah Power and Water Company is a joint venture of Sembcorp's wholly owned subsidiary Sembcorp Utilities, the Oman Investment Corporation (OIC), and Bahrain-based Instrata Capital. Sembcorp holds a 60-per cent stake in Sembcorp Salalah Power and Water Company, which is the largest investment by a Singaporean company in Oman. OIC and Instrata have 35 per cent and five per cent holdings, respectively, in the power company.
The Salalah IWPP consists of a gas-fired power plant, with a total gross capacity of 490 megawatts, and a desalination plant, with a water-production capacity of 15 million gallons per day.
As the largest and most energy-efficient power and water plant in Dhofar, in southern Oman, the Salalah IWPP plays a major role in meeting the growing power and water demand in this region. The first phase of the project was completed in July 2011, the second phase was subsequently completed in the first quarter of 2012, and the third and final phase was completed a few months later.
Two other major independent power projects in Oman--Al Batinah Power Company and Al Suwaidi Power Company--are also expected to offer shares to the investing public. Since both companies signed agreements with the government at some point in 2010, these share offers will probably be seen by next year. Sohar 2 (owned and operated by Al Batinah Power Company) and Barka 3 (owned and operated by Al Suwaidi Power Company) have achieved full commercial operations on April 3 and 4, respectively.
© Times of Oman 2013
WanSiTong ( Date: 19-Apr-2013 17:26) Posted:
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marubozu1688 ( Date: 03-Mar-2013 00:54) Posted:
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SEMBCORP TO DEVELOP ITS FIRST OVERSEAS ENERGY-FROM-WASTE FACILITY IN THE UK
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_92F2F09FAB74C7AF48257B520027A7B5/$file/Sembcorp-DevelopFirstOverseasEnergy-From-WasteFacilityinUK-19Apr2013.pdf?openelement
WanSiTong ( Date: 19-Apr-2013 17:09) Posted:
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Extraded from 2012 Full yr results announcement:
2013 Prospects look good !!! 15 cents dividend ex 29/4
13. PROSPECTS
Utilities
In 2013, the completion of Singapore’s liquefied natural gas (LNG) terminal is expected to increase natural
gas supply to the country. In addition, over 2,400 megawatts of new generation capacity is expected to
come onstream over the next few years, starting from 2013. The increase in gas supply and generation
capacity is expected to intensify competition and may impact the performance of our Singapore
operations.
2013 will see a full year’s contribution from our newly-acquired power assets in China and the completion
of our second woodchip boiler in Singapore in June.
The Utilities business, underpinned by long-term contracts and strong operational performance, will remain
focused on the execution of its pipeline of projects and pursuit of new growth opportunities to deliver longterm
growth.
Marine
Our Marine business has a net orderbook of S$13.6 billion with completion and deliveries stretching into
2019. This includes S$11 billion in contract orders secured in 2012 and a S$900 million contract secured
since the start of 2013.
The new yard at Tuas will commence operations in the second half of 2013 and the construction of the
Brazilian yard is on track.
The business continues to receive healthy enquiries for the various segments although competition
remains keen with effects on margin.
Urban Development
The Urban Development business is expected to deliver a better performance in 2013.
Group
The Group, underpinned by sound business fundamentals and a healthy pipeline of projects and
orderbook, continues to be well-positioned to deliver long-term growth.