Sembcorp Industries 2021 net profit jumps 78 percent

Electricity advertisement for Sembcorp Industries. Note: Photo taken pre-CovidElectricity advertisement for Sembcorp Industries. Note: Photo taken pre-Covid

Sembcorp Industries reported Wednesday its full year net profit rose 78 percent on-year to S$279 million amid higher contributions across all segments. 

Net profit before exceptional items for 2021, which were a negative S$193 million, rose 57 percent on-year to S$472 million, Sembcorp said in a filing to SGX. The main contributor to the exceptional items was a S$212 million impairment for the 49 percent-owned Chongqing Songzao coal-fired power plant in China, Sembcorp said.

Turnover for the 12 months ended 31 December climbed 43 percent on-year to S$7.80 billion, the filing said.

“Less than a year into executing our strategic transformation plan, we have made good progress,” Wong Kim Yin, group president and CEO of Sembcorp Industries, said in the statement.

During the year, Sembcorp obtained 2.9 gigawatts of new renewable energy projects, and after completing the acquisition of a China portfolio of 658 megawatts in the first half of this year, gross renewables capacity, both installed and under development, will be at 6.1 gigawatts, Wong noted. 

“Our focus on execution is delivering results and we are pushing confidently towards our target of 10GW of gross installed renewables capacity by 2025,” Wong said.

Segment performance

The renewables segment posted net profit rose 22 percent on-year to S$56 million in 2021, mainly on higher contributions from the wind business.

The integrated urban solutions business reported 2021 net profit before exceptional items rose 37 percent on-year to S$155 million on stronger performance from the urban business and waste and waste-to-resource businesses. 

The sustainable solutions segment, including both renewables and integrated urban solutions, accounted for 35 percent of 2021 group net profit before exceptionals and corporate costs, Sembcorp said. 

The conventional energy segment reported 2021 net profit before exceptional items rose 52 percent on-year to S$373 million, mainly on better performance in India, Singapore and the U.K. on higher energy demand and margins in the fourth quarter.

“The group remains focused on the transformation of its portfolio from brown to green and the achievement of its 2025 targets,” Sembcorp said.

Sembcorp declared a final dividend of 3 Singapore cents a share, bringing the year’s total dividend to 5.0 Singapore cents. In 2020, Sembcorp paid a sole, final dividend of 4.0 Singapore cents, the filing said.

Read more details of Sembcorp’s earnings.