(Reuters) -Singapore’s Sembcorp Industries reported a mostly steady net profit on Friday, as a dip in earnings contribution from its gas and related services segment was offset by a jump in bottom-line performance at the renewables division.
The utility company said its net profit for the six-month period ended June 30 was S$536 million ($418.00 million), 1% below the S$543 million recorded a year ago.
It declared an interim dividend of 9 Singapore cents per share, higher than the six Singapore cents apiece declared last year.
Earnings before exceptional items at the gas and related services business fell 3% due to lower generation spreads in Singapore and the absence of any contribution from the Phu My 3 power plant in Vietnam.
These were, however, offset by contributions from Senoko Energy, a power station in Singapore, Sembcorp said.
The renewables segment saw a 27% rise in earnings during the first half, reflecting a higher contribution from India operations on better wind resource and improved operational renewables capacity.
However, the segment’s performance was still impacted by more curtailment and lower tariffs from in certain provinces in China.
Its integrated urban solutions arm delivered net profit before exceptional items of S$74 million, slightly higher than S$73 million reported last year. This was backed by higher land sales in Indonesia and higher earnings from the water business in China.
The company expects to maintain a sustainable dividend payout in fiscal 2025.
“We remain focused on strengthening and growing our businesses to drive Sembcorp’s strategic plan towards 2028 and beyond, to deliver increasing value to our shareholders,” said Group CEO Wong Kim Yin.
($1 = 1.2823 Singapore dollars)
(Reporting by Rishav Chatterjee & Rajasik Mukherjee in Bengaluru; Editing by Alan Barona)
