Sembcorp Industries – Annual Report 2009

The following key indicators were extracted from the annual report of Sembcorp Industries (SCI) for the year ended 31 December 2009.

 

 

2009

Change over 2008

Revenue

$9.6b

-4%

Profit to shareholders

$683m

+35%

Earnings per share

38.4¢

+9.9¢

Return on equity (ROE)

23%

+5.1% points

Return on Assets (ROA)

11.9%

+2.9% points

Dividend per share

15¢

+4¢

Dividend yield

4.05%

-0.69% point

Debt to Equity (times)

0.29

-0.02

Net Tangible Assets per share

$1.80

+40¢

Price of share as at 31 Dec

$3.70

+$1.38

 

Sembcorp Industries (SCI) operates in 4 key business segments: Utilities, Marine, Environment and Industrial Parks. Utilities business covers energy and water generation. Marine business includes ship repair, shipbuilding, ship conversion and rig building. Environment business provides integrated environmental management solutions to industries, municipalities and government agencies. Industrial Parks business owns, develops, markets and manages integrated townships and industrial parks in Vietnam, China and Indonesia.

 

Of the 4 business segments, Utilities contributed 36% of SCI’s turnover and Marine contributed 60%.

 

61.3% of Sembcorp Marine, another Singapore Exchange listed company, was owned by SCI.  Hence, the performance of Sembcorp Marine has significant impact on SCI.

 

Temasek Holdings is the major shareholder of SCI and owned 49.7% of SCI.

 

On most accounts, SCI in 2009 performed better than 2008. Despite turnover was reduced by 4 per cent, its profit after tax and minority shareholders increased by 35 per cent to $683m. Shareholders will be rewarded with 15 cents dividend per share resulting with a dividend yield of 4.05 per cent based on share price at 31 December 2009 of $3.70. Debt to equity ratio was a manageable ratio of 0.29 times (or 29%).

 

The Net tangible asset per share as at 31 December 2009 was $1.80. The Price to Book ratio was 2.05 on that date (based on $3.70). The last traded price of Sembcorp Industries was $4.21 on 9 April 2010. It has gone up substantially since the end of last year.

 

Copyright © 2010, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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