Slapped by massive losses in its marine operations.
A 72% surge in the net profit in its utilities business proved futile as its sinking marine business proved the weight in the firm’s neck, ultimately dragging Sembcorp’s net profit for 2015 to $549m from $801m the previous year.
According to a press release by Sembcorp Industries, the net loss of $176.4m in its marine arm compared to a net profit of $340m the same time last year proved the punch in the gut for the company.
However, Sembcorp contends that it is sufficiently prepared, not just to ride the storm, but to also recover strongly when the market recovers.
“Sembcorp Marine remains optimistic on the longer term prospects of its business as its facilities have been built to cater to the industry’s demand for the long-term,” the press release said.
Meanwhile, this massive loss clearly overshadows the 72% growth in net profit of its utilities business due to the growth from its overseas operations as well as gains from the sale of its
Australian waste management joint venture and municipal water operations in the UK and Zhumadian, China.
Its urban development business also posted a net profit of $33.5m compared to $44.3m last year.
Do you know more about this story? Contact us anonymously through this link.