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| We are the largest engineering
and construction company in Southeast Asia, with
core capabilities in process engineering and design,
civil engineering and building construction. We
are also a leading process contractor for the world’s
chemical, nuclear, plastic, fertiliser, food and
pharmaceutical industries. |
| Operations
Review | Outlook
| Orderbook
|
Overseas |
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Operations
Review
As we continued to focus on the profitable execution
of our projects through good risk management and
cost control, SembCorp Engineers and Constructors’
(SembE&C) PATMI in 2003 improved over the previous
year. SembE&C contributed a small net profit
of S$0.6 million to the Group compared to the S$127.0
million loss incurred in 2002. Turnover reduced
from S$888.3 million in 2002 to S$817.8 million
in 2003 in line with our strategy to selectively
target projects in particular sectors. |
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| In 2003, our efforts were focused on turning the
company around and laying the foundation for profitability
and business improvement in 2004 and beyond. We
restructured and downsized our operations and strengthened
our risk management systems focusing on both project
and business risk. |
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| Capitalising on our front-end capabilities, we
shifted our business focus from civil to process
engineering and design. With an emphasis on emerging
markets such as China and India as well as the Middle
East, we target front-end process engineering, design,
procurement and construction of process plants,
design and build of high-end buildings as well as
selected petrochemical polymers and gas sectors.
Process engineering projects now comprise 60% of
our orderbook compared to 55% the year before. In
Singapore, we will continue to specialise in rail
infrastructure and environmental projects. |
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| In March 2003, SembE&C was awarded a S$13.4
million contract by Carsem-Suzhou to build a world-class
assembly and test facility in Suzhou, China. Completed
in December 2003, SembE&C designed and built
the assembly and test facility, which provides packaging
and test services for Carsem’s semiconductor
customers in China. We also continued to enhance
and build upon our existing client relationships.
In May 2003, SembE&C was awarded a S$125 million
contract by Singapore’s Public Utilities Board
(PUB) to construct a solids building to house sludge
processing equipment at the Changi Water Reclamation
Plant. To date, PUB has awarded SembE&C a total
of four contracts amounting to S$627 million to
develop various facilities for the Changi Water
Reclamation Plant and to manage the engineering,
procurement and construction aspects of process
engineering works for the major sections of the
water reclamation plant. These contracts exemplify
the long-term relationships that have been built
up between SembE&C and our repeat clients. |
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Outlook
Shrinking 30% in 2003, the construction industry
in Singapore will continue to see competitive pressure
in 2004. Despite continued weakness in the local
construction sector, we believe that there are opportunities
abroad in the selected sectors that we are focused
on, and will continue to intensify our marketing
efforts in these areas. |
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| Through comprehensive risk management and cost
control, we will also continue to ensure the profitable
execution of existing projects in our S$1.4 billion
orderbook. |
|
Orderbook
As at end December 2003, SembE&C’s
orderbook stood at S$1.4 billion. Our major projects
are:
|
| Project |
Original Contract Value (S$m) |
Client |
Scope of Work |
Date of Completion |
 |
| Kallang/Paya Lebar Expressway (C421) |
235 |
Land Transport Authority |
Construction of a 1.5 km tunnel November connecting
to one flyover expressway and ancillary works |
November 2005 |
|
| Kallang/Paya Lebar Expressway (C422) |
257 |
Land Transport Authority |
Construction of a 1.6 km tunnel connecting to
two flyover expressways and ancillary works |
November 2005 |
|
| Changi Water Reclamation Plant Contract C4C |
160 |
Public Utilities Board |
Construction of a sludge digester facility for
the Changi Water Reclamation Plant |
September 2007 |
|
| Changi Water Reclamation Plant Contract C4B |
125 |
Public Utilities Board |
Solids building, civil and mechanical and engineering
works |
December 2007 |
|
| Changi Water Reclamation Plant Contract EP3 |
141 |
Public Utilities Board |
Construction of a sludge drying system for the
Changi Water Reclamation Plant |
January 2008 |
Overseas
| Project |
Original Contract Value (S$m) |
Client |
Scope of Work |
Date of Completion |
|
| Nanjing-LDPE-E&P |
175 |
C.T.C.I |
Construction of a low density polyethylene
plant in Nanjing, China |
February 2005 |
|
| Betara Complex Development in Sumatra,
Indonesia |
187 |
PetroChina Jabung International |
Engineering, procurement and construction
of the Betara Complex Development |
April 2005 |
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2003 |
2002 |
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S$m |
S$m |
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Revenue |
817.8 |
888.3 |
|
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PATMI |
0.6 |
(127.0) |
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| Note:
Figures are taken at SembCorp Engineers & Constructors’
Group Level |
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| Key Facts |
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| • |
Southeast Asia’s largest engineering
and construction company |
| • |
Experience across 35 countries with operations
in China, India, Mexico, Middle East, Southeast
Asia and United Kingdom |
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More than 1,300 employees worldwide |
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Track record in process engineering |
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| Competitive
Edge |
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Unique ability to offer a full range
of turnkey capabilities across the entire engineering,
procurement and construction value chain for our
projects |
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One of the most IT-advanced construction
companies in the region with a developed infrastructure
which empowers our operations with timely, relevant
and accurate information |
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Strong reputation and track record
in delivering state of the art construction methods
including pre-cast construction solutions |
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