Sembcorp Industries (Sembcorp) posted a strong performance for the full year of 2022 (FY2022). Including discontinued operation, turnover was S$9.4 billion, 21% higher than turnover of S$7.8 billion in FY2021. Group net profit before exceptional items in FY2022 was S$883 million, an increase from S$472 million in FY2021, due to higher contributions from the Conventional Energy and Renewables segments. The Group recorded exceptional items of negative S$35 million in FY2022, compared to negative S$193 million in FY2021. Group net profit after exceptional items was S$848 million, compared to S$279 million in FY2021.
Net profit before exceptional items for the Renewables segment grew 150% to S$140 million, from S$56 million in FY2021, driven by contributions from Shenzhen Huiyang New Energy (HYNE) and 35%-owned SDIC New Energy, as well as higher power prices for the solar assets in Singapore. During the year, we secured 3.6GW of renewables capacity through acquisitions and organic growth across key markets, bringing the Group’s renewables capacity as at end 2022 to 9.8GW of renewables capacity.
Net profit before exceptional items from the Integrated Urban Solutions segment was S$148 million compared to S$155 million in FY2021. Lower land and property sales due to a slowdown in the China market were mitigated by higher contribution from the waste-to-resource operations in the UK on higher power prices. Sustainable Solutions businesses comprising the Renewables and Integrated Urban Solutions segments accounted for 27% of the Group’s net profit before exceptional items and corporate costs in FY2022.
The Conventional Energy segment posted net profit before exceptional items of S$766 million in FY2022, up from S$373 million in FY2021. This was mainly due to better performance in Singapore and the UK on higher energy demand and margins.
FINANCIAL SUMMARY
GROUP OUTLOOK
The Group performed exceptionally in 2022, driven by strong performance from the Conventional Energy segment on the back of elevated power prices in Singapore and the UK, as well as increased operational capacity in the Renewables segment.
Performance of the Renewables segment will grow, as a result of contributions from acquisitions announced in 2022. The Urban business continues to secure land bank to ensure a steady land pipeline. Performance of the Conventional Energy segment is subject to energy market conditions. The sale of SEIL was completed in January 2023. Henceforth, we will recognise income from the Deferred Payment Note.
We expect macro headwinds to persist, with elevated inflation and rising interest rates weighing down on global demand. Further escalations in geopolitical tensions could also worsen supply disruptions and impact business performance.
The Group continues to focus on the execution of its transformation strategy and will leverage its energy and urban development capabilities to seize opportunities in the global energy transition.
. Including discontinued operation, turnover was S$9.4 billion, 21% higher than turnover of S$7.8 billion in FY2021.){kind=link}