Sembcorp Industries Reports Decline in First-Half Earnings
Sembcorp Industries Ltd, a Singapore-based investment holding company, has released its first-half earnings report, revealing a 1% decline in profit to $536 million. The company’s gas business was a major contributor to this decline, with lower turnover impacting the bottom line.
The news sent shockwaves through the Singapore stock market, with Sembcorp’s shares plummeting by over 13% on Friday. However, the company has proposed an interim dividend of 9 cents per share, a 10% increase from the previous year. This move is likely to be seen as a positive sign by investors, despite the decline in earnings.
The company’s earnings were also affected by lower generation spreads in Singapore and the absence of contributions from its Phu My 3 power plant in Vietnam. This has led to a mixed performance in the Singapore stock market, with the Straits Times Index (STI) closing 0.4% lower on Friday.
Key Factors Contributing to the Decline
- Lower turnover from the gas business
- Lower generation spreads in Singapore
- Absence of contributions from the Phu My 3 power plant in Vietnam
What’s Next for Sembcorp Industries?
While the decline in earnings is a setback for the company, the proposed increase in interim dividend is a positive sign. Investors will be watching closely to see how the company responds to these challenges and whether it can regain its footing in the market.