Sembcorp Industries Ltd – FY 2011 Annual Report

This post is on the financial results of Sembcorp Industries Limited (Sembcorp) for the year ended 31 December 2011.

Figures in brackets relate to previous year.

Turnover $9.0 billion (up 3.0%)
Net Profit $809 million (up 2.1%)
ROE   20.4% (22.2%)
Return on Assets (ROA) 10.7% (12.2%)
EPS     45.3 cents (44.4 cents)
Total dividend per share consists of 15.0 cents ordinary and 2.0 cents bonus dividend (17.0 cents)
Dividend payout 37.5% (38.3% of EPS)
Dividend yield 3.3% (based on same $5.14 for 31.12.2010 and 27.02.2012)
Net Assets per share $2.31 ($2.13)
Cash and cash equivalents $3.0 billion ($3.5 billion)
Net gearing is net cash position.

Turnover was 3.0% higher at $9.0 billion. Net profit increased 2.1% to $809 million. As a consequence, earnings per share rose to 45.3 cents from 44.4 cents. Return of equity (ROE) was lower by 1.8% points to 20.4%. Return on assets (ROA) was lower by 1.5% points to 10.7%.

Sembcorp proposed identical total cash dividend as the year before  (17.0 cents). This includes 2.0 cents bonus dividend for both years. Dividend payout is 37.5% on earnings per share. Interestingly, the share price for 31 December 2010 was the same as share price last traded today ($5.14). The dividend yield is therefore the same at 3.3%.

What is different from previous year is net assets per share figure. It improved 18 cents to $2.31. On the Price-to-book ratio, FY2011 is 2.23 times and FY2010 was 2.41.

Cash and cash equivalents was half a million dollars lower at $3.0 billion. Net gearing is net cash position, ie cash is more than borrowings.

Net order book for the marine business as at February 2012 was $6.3 billion.

Strategic Business Units
Sembcorp has three key business segments: Marine, Utilities, and Integrated Urban Development. Biggest operations come from Marine business segment (ship repair, shipbuilding, ship conversion, rig building and offshore engineering and construction) followed by Utilities business segment (energy and water).

For marine business, it was carried out by SGX-listed firm Sembcorp Marine Ltd and four other private limited companies. Sembcorp industries owns 60.60% of Sembcorp Marine Ltd.

Contribution by revenue in percentage term:
Marine 44%
Utilities 54%
Integrated Urban development 0.09%

Net profit contribution in percentage term:
Marine 56%
Utilities 38%
Integrated Urban development 5%

Marine business contributed the highest net profit for the group at 56% of total net profit. Performance of Sembcorp Marine Ltd on Singapore stock exchange has impact on its parent company – Sembcorp Industries.

Major shareholder
Temasek Holdings owns 48.84% of Sembcorp Industries.

Copyright © 2012, limkimtong for Living Investment

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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