Sembcorp Industries, a Singapore-based renewable energy company, has announced a net profit of $137.8 million (₹ 9.8 billion) in the first half of 2019 (1H2019), up from $114.7 million (₹8.2 billion) recorded in the same period last year, on account of improved performance of its energy business.

The company’s turnover was $3.5 billion (₹252 billion) compared to $4.4 billion (₹314 billion) in 1H2018. Profitability in India continued to improve with 1H2019 net profit growing by 46% to $25.27 million (₹1.82 million).

Sembcorp’s energy business recorded an increase in net profit by 14% to ~$127.8 million (~₹9 billion) in 1H2019 compared to $155 million in 1H2018, driven mainly by its robust performance in Southeast Asia (excluding Singapore), China, and India.

“We continue to make progress in our strategy to reposition the business to become a more sustainable integrated energy player in the global energy transition. Our focus remains on lifting performance, building capabilities, and sharpening our competitive edge. We strengthened our renewables portfolio, with our Singapore solar power capacity growing over 40% to 166 MW peak and commissioned 200 MW of wind assets in India. We are also in the final stages of making a replacement decision on one of our combined heat and power facilities in Singapore to ensure we have a fleet of high-efficiency assets to better serve our customers there,” said Neil McGregor, the chief executive officer of Sembcorp Industries.

The company recently made an equity investment of ₹5,210 million (~$73 million) into its sister-concern, Sembcorp Energy India Limited (SEIL). The funds will be utilized for the development of its renewable business in India. In July 2019, Mercom had reported that the equity injection of Sembcorp was funded through a mix of internal funds and borrowings. This equity infusion resulted in the subscription of 275 million additional shares in SEIL by Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities (SCU).

According to the company, Sembcorp India has commissioned 200 MW out of the 550 MW capacity awarded by the Solar Energy Corporation of India (SECI) for wind power projects in Bhuj, Gujarat.

Last year, Semcorp commissioned 250 MW of interstate transmission system (ISTS)-connected wind power projects. The capacity was part of the 1,000MW of wind projects tendered by SECI in November 2016 under Tranche 1.  The project is located in Chandragiri district of Tamil Nadu.

Image Credit: Mercom