Sembcorp Industries (Sembcorp) posted a Group net profit of S$46 million for the first half of 2021 (1H2021) compared to a net loss of S$42 million in 1H2020.
Turnover was S$3.3 billion, up 26% from S$2.6 billion in 1H2020. Group net profit before exceptional items grew 69% to S$252 million, mainly due to higher contribution from the Conventional Energy segment. In 1H2021, exceptional items totalling a negative S$206 million were recognised, due to an impairment of S$212 million made for the 49%-owned Chongqing Songzao coal-fired power plant in China.
In 1H2021, the Conventional Energy segment delivered a net profit of S$185 million before exceptional items compared to S$127 million in 1H2020. Higher contribution from the Conventional Energy segment was attributable to better performance in Singapore and India driven by higher energy demand and margins compared to 1H2020. The Renewables segment recorded a net profit of S$24 million in 1H2021 compared to S$33 million in 1H2020 due to lower wind resource for its wind energy assets in India. In the period, net profit before exceptional items from the Integrated Urban Solutions segment was S$63 million compared to S$64 million in 1H2020.
Despite the impact of the COVID-19 pandemic, the company’s delivery of essential products and services to the community has continued without disruption to date. In 1H2021, an additional 105MW of renewable energy projects was secured in Singapore and Vietnam, and 78MW of renewable energy capacity installed.
Significant challenges remain for economies around the world. Uncertainties continue to persist with regard to the COVID-19 pandemic with the potential resurgence of infections globally.
The Group is continuing to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable development. In 1H2021, 78MW of renewable energy capacity was installed. Approximately 87MW of renewable energy capacity is expected to come onstream by end 2021.