Blame its weak-performing thermal power project in India.
Sembcorp Industries posted a decline in net profit for the past six months, down 13.7% to $194.9m.
According to the group, its utilities business contributed $98.3m in net profit to the Group compared to $149.9m in 1H16 due to weak performance from its second thermal power project SGPL in India.
The project was refinanced in the period, leading to the group incurring a cost of $39.1m. Excluding this, its utilities business would have recorded $137.4m.
Its operations in Singapore grew net profit by 29% and contributed 50% of Utilities’ net profit during the period.
Meanwhile, the urban development business delivered a strong net profit of $45.7m compared to $7.4m in 1H16, driven by land sales in China and Vietnam.
On the other hand, the marine business continued to be subdued and contributed a net profit of $27.4m compared to $40.6m in 1H16. This was mainly due to lower contribution from rig building and offshore platform projects.
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