Sembcorp Energy India Ltd (SEIL), has posted a net profit of SGD 28.9 million (~$21.02 million) in the July-September quarter. In comparison, the company suffered a loss of SGD 2.7 million (~$1.96 million) in the same quarter last year. SEIL is part of Singapore-based Sembcorp Industries, an energy, water and marine group operating worldwide.
The company credited the turnaround to profit to the better operational performance and commissioning of a new wind power project in Chandragiri district of Tamil Nadu. Mercom reported that the company commissioned the 250 MW of interstate transmission system (ISTS)-connected wind power projects in October. The capacity was part of the 1,000 MW of wind projects tendered by the Solar Energy Corporation of India (SECI) in November 2016 under Tranche I. Sembcorp Green had won the project in the first round of wind auction conducted by SECI in April 2017. The project’s entire capacity was completed ahead of the SECI timelines.
“Improvement in third quarter of 2018 came from its renewable power plant with good wind season,” company said.
Sembcorp Industries Group President and CEO Neil McGregor said: “India continued to deliver a positive performance. We secured a long-term power purchase agreement for our second thermal power plant and commenced operations of the 250-megawatt wind power project, the first installed capacity delivered under India’s nationwide wind power tenders. We now have 2,600 megawatts of renewable energy assets in operation and under development globally.”
SEIL’s turnover increased by 9 percent to SGD 482.5 million (~$ 350.86 million) for the quarter. It posted net profit of SGD 52.7 million (~$ 38.32 million) during nine-month period ending September 30, 2018, as compared to a loss of SGD 22.5 million (~$16.36) in the same period last year.
The company’s financial accounting year is from January to December.
The company also reported that, Sembcorp Gayatri Power Limited, a subsidiary of SEIL, has been merged into SEIL and the merger process has been completed. Accordingly, the thermal business has been consolidated into SEIL and renewable business will remain with the SEIL subsidiary (Sembcorp Green Infra Limited).
Earlier, Mercom has reported that Sembcorp Industries has entered into an agreement to acquire the remaining 28 percent stake in Sembcorp Green Infra, a wind and solar project developer, from IDFC Private Equity Fund III (IDFC)’s for ₹14.1 billion (~$220.2 million). With this acquisition, Sembcorp Industries would become the sole owner of SGI.
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer