SINGAPORE (Nov 6): Sembcorp Industries says earnings for the first nine months of 2014 (9M14) fell 6% to $560.5 million from a year ago while turnover increased 5% to $8.2 billion.

However, in 9M13, Sembcorp’s utilities business recorded gains from the IPO of Sembcorp Salalah Power and Water Company in September, which were offset by an impairment made for its UK operations.

Excluding these significant items, Sembcorp says group earnings for 9M14 would have been 6% higher from 9M13.

In the 3Q13 ended Sept, Sembcorp saw a 22.7% fall in earnings to $196.6 million while revenue rose 3.2% to $3.1 billion.

For the nine-month period, Sembcorp says the Utilities and Marine businesses continued to be the main profit contributors, accounting for 53% and 42% of group earnings respectively.

Sembcorp’s Utilities business delivered a profit of $298.6 million compared to $373.7 million in 9M13. Meanwhile, the Marine business reported a profit of $234.1 million, an increase of 3% from $226.3 million, while the Urban Development business reported a 132% growth in profit to $29.3 million from $12.6 million in 9M13.

In its outlook for FY2014, Sembcorp says competition in the Singapore power market continues to be intense and is expected to affect the performance of the Utilities business. However, contribution from its overseas business is expected to grow.

Despite the current low oil price environment, Sembcorp says its Marine business expects long-term fundamentals driving the offshore exploration and production (E&P) market remain stable. However, reduction in capex spending could impact new orders and keen competition continues to exert pressure on margins.

Nevertheless, the Marine business has achieved a net orderbook of $12.6 billion with completion and deliveries stretching into 2019. This includes a total of $4.2 billion in contracts secured since the start of 2014.

The Urban Development business is expected to deliver a comparable performance in 2014, underpinned by land sales in its urban developments in China and Vietnam.

Sembcorp closed 2.7% lower at $4.69.