In addition, the sole net loss from discontinued operation in FY2024 refers to Chongqing Songzao Sembcorp Electric Power. Sembcorp disposed of its 49% stake in the coal-fired power plant joint venture (JV) with Chongqing Energy Investment Group in December 2024, selling it to an undisclosed buyer. Sembcorp had formed the JV in 2015 and its stake was fully impaired in 2021.
Sembcorp Industries has given analysts, shareholders and perhaps even environmentalists something to cheer about. Starting with its financials, Sembcorp’s adjusted earnings for FY2024 ended Dec 31, 2024 grew 7% y-o-y to beat consensus forecasts, coming in at around $1.01 billion.
The adjustments, according to statements released Feb 27, involve “exceptional items” (EI) totalling a positive $1 million. This comprised a net gain of $3 million on disposal of assets and a $8 million gain on a “bargain purchase” on the acquisition of two special purpose vehicles of Leap Green Energy in India. These were partially offset by impairments of $6 million for project expenses incurred in Singapore and Vietnam, and a $4 million change in fair value of contingent consideration for a past acquisition in India upon collection of certain receivables.
