Sembcorp flags ‘materially higher’ first-half profit on continued high electricity prices

SINGAPORE (THE BUSINESS TIMES) – Sembcorp Industries’ financial results are expected to be materially higher for the first half of 2022 compared to a year ago, on the back of continued high electricity prices in Singapore and India, it said in a Tuesday (Jul 19) bourse filing.

The group added that it is in the process of finalising the unaudited consolidated financial results for H1 2022 and further details will be disclosed when the results are announced on Aug 5.

Sembcorp swung to a net profit of $46 million for the first half of 2021 from a net loss of $42 million in the year-ago period. Before exceptional items, earnings swelled 69 per cent to $252 million, mainly due to higher energy demand and margins.

Also on Tuesday, Sembcorp said in a separate filing that contrary to a report that Myanmar’s central bank has ordered a halt on repayment of foreign loans, its subsidiary in Myanmar has not received such a directive. It has also received prompt payment from its offtaker and continues operation of its Myanmar power plant, Sembcorp said.

As at June 30, 2022, the net book value of the project was US$97 million (S$135.6 million). US$209 million of the project’s loan remains outstanding, backed by a corporate guarantee issued by the company’s wholly-owned subsidiary Sembcorp Utilities.

Sembcorp’s shares closed up three cents or 1 per cent to 2.93 on Monday.

• With additional information from The Straits Times

source https://eastmud.com/latest-news/sembcorp-flags-materially-higher-first-half-profit-on-continued-high-electricity-prices/