Sembcorp’s net profit plunges 47.1% to S$193.5

Its utilities arm is still battered in the power market.

With its business confronting uncertainties and intense market competition, Sembcorp Industry’s group net profit crashed to S$193.5 million in 1H16.

A press release from Sembcorp showed that in 1H16, the Utilities business contributed S$149.9 million in net profit to the Group compared to S$216.0 million in 1H15. In 1H15, the business recorded a gain of S$54.7 million form the divestment of its municipal water operations in the UK. The Marine business contributed a net profit of S$40.6 million compared to S$131.4 million in 1H15 mainly due to lower contribution from rig building projects, higher finance costs and share of losses from associates. The Urban Development business recorded a net profit of S$7.4 million compared to S$13.0 million in 1H15.