|
|
Group |
Company |
|
|
2008 |
2007 |
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Bank overdrafts |
22 |
— |
889 |
— |
— |
Secured term loans |
(a) |
81,750 |
101,442 |
— |
— |
Unsecured term loans |
(b) |
202,613 |
406,615 |
— |
150,000 |
Finance lease liabilities |
(c) |
1,405 |
1,248 |
— |
— |
|
|
285,768 |
510,194 |
— |
150,000 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Secured term loans |
(a) |
319,740 |
470,997 |
— |
— |
Unsecured term loans |
(b) |
200,000 |
350,773 |
— |
— |
Finance lease liabilities |
(c) |
2,810 |
1,716 |
— |
— |
|
|
522,550 |
823,486 |
— |
— |
|
|
808,318 |
1,333,680 |
— |
150,000 |
Maturity of liabilities (excluding finance lease liabilities)
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
Within 1 year |
284,363 |
508,946 |
— |
150,000 |
After 1 year but within 5 years |
432,164 |
641,784 |
— |
— |
After 5 years |
87,576 |
179,986 |
— |
— |
Total borrowings |
804,103 |
1,330,716 |
— |
150,000 |
a. Secured Term Loans
The secured loans are collaterised by the following assets:
|
Group |
|
Net Book Value |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Property, plant and equipment and investment property |
925,180 |
1,118,579 |
b. Unsecured Term Loans
Included in the unsecured term loans are medium term notes of the Group as follows:
| • |
In 2004, a wholly-owned subsidiary of the Company, Sembcorp Financial Services Pte Ltd (the “Issuer”), established a S$1.5 billion Multicurrency Multi-Issuer Debt Issuance Programme (the “Programme”). Pursuant to this, the Company, together with the Issuer and other certain subsidiaries of the Company (the “Issuing Subsidiaries”), may from time to time issue debt under the Programme subject to availability of funds from the market. The obligations of the Issuing Subsidiaries under the notes will be fully guaranteed by the Company. The Programme has not been utilised as at December 31, 2008.
The Programme replaced the S$2.0 billion Multicurrency Debt Issuance Programme established by the Company (“the Existing Programme”) in October 2000. No further debt issuances will be made by the Company under its Existing Programme. The outstanding debt issuances of S$150 million was fully settled upon its maturity on June 6, 2008 and the Existing Programme was terminated.
|
| • |
In 2004, a subsidiary, Sembcorp Marine Ltd (“SCM”) established a S$500 million Multicurrency Multi-Issuer Debt Issuance Programme (the “Programme”) pursuant to which SCM with its subsidiaries, Jurong Shipyard Pte Ltd and Sembawang Shipyard Pte Ltd (“Issuing SCM Subsidiaries”), may from time to time issue the notes subject to availability of funds from the market. The obligations of Issuing SCM Subsidiaries under the notes will be fully guaranteed by SCM.
Under the Programme, SCM or any of the Issuing SCM Subsidiaries may from time to time issue notes in series or tranches in Singapore Dollars and / or any other currency. Such notes are listed on the Singapore Exchange Securities Trading Limited and are cleared through the Central Depository (Pte) Ltd.
The principal amount of the notes issued by SCM amounted to S$150 million (2007: S$285 million), bears an interest rate of 3.00% (2007: 2.82% to 3.00%) per annum and is due by September 26, 2009 (2007: 2008 to 2009). |
|
| |
c. Finance Lease Liabilities
The Group has obligations under finance leases that are payable as follows:
|
2008
 |
2007
|
|
Payments |
Interest |
Principal |
Payments |
Interest |
Principal |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
|
Group |
|
|
|
|
|
|
Within 1 year |
1,574 |
169 |
1,405 |
1,375 |
127 |
1,248 |
After 1 year but within 5 years |
3,178 |
368 |
2,810 |
1,968 |
252 |
1,716 |
Total |
4,752 |
537 |
4,215 |
3,343 |
379 |
2,964 |
Under the terms of the lease agreements, no contingent rents are payable. The interest rates range from 2.50% to 7.42% (2007: 2.50% to 7.42%) per annum.
|
|
Group |
Company |
|
|
2008 |
2007 |
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Deferred income |
(a) |
91,342 |
25,885 |
3,728 |
— |
Deferred grants |
(b) |
17,815 |
26,348 |
— |
— |
Other long-term payables |
(c) |
6,171 |
5,555 |
— |
— |
Other financial liabilities |
24 |
65,088 |
2,271 |
— |
— |
Amount due to related parties |
25 |
7,651 |
4,484 |
458,734 |
— |
Share of net liability of an associate |
9 |
— |
49,299 |
— |
— |
|
|
188,067 |
113,842 |
462,462 |
— |
| a. |
Deferred income relates mainly to advance payments received from customers in respect of connection and capacity charges for the supply and delivery of gas and utilities, the difference between the fair value of the construction services provided and the fair value of the financial asset receivable. |
| b. |
Deferred grants relate to government grants for capital assets. |
| c. |
Other long-term payables relate primarily to retention monies of subsidiaries. |
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Sale of gas, water, electricity and related services |
4,197,760 |
3,601,171 |
Ship and rig repair, building, conversion and related services |
4,989,922 |
4,442,078 |
Construction and engineering related activities |
131,957 |
115,497 |
Environment management and related services |
213,685 |
206,940 |
Service concession revenue |
129,964 |
— |
Others |
265,125 |
253,092 |
|
9,928,413 |
8,618,778 |
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Interest paid and payable to: |
|
|
– associates and joint ventures |
— |
69 |
– bank loans and others |
43,764 |
52,219 |
Amortisation of capitalised transaction costs and transactions costs written off |
1,099 |
1,189 |
Interest rate swap |
|
|
– fair value through profit or loss |
(456) |
448 |
|
44,407 |
53,925 |
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Current tax expense |
|
|
Current year |
125,311 |
150,715 |
Over provided in prior years |
(43,161) |
(44,228) |
|
82,150 |
106,487 |
Deferred tax expense |
|
|
Movements in temporary differences |
29,040 |
44,789 |
Under provided in prior years |
19,761 |
2,469 |
Change in tax rate |
— |
(17,981) |
|
48,801 |
29,277 |
Income tax expense |
130,951 |
135,764 |
Reconciliation of effective tax rate
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Profit for the year |
730,994 |
651,342 |
Total income tax expense |
130,951 |
135,764 |
Share of results of associates and joint ventures |
(126,096) |
(153,196) |
Profit before share of results of associates and joint ventures, and income tax expense |
735,849 |
633,910 |
|
|
|
Income tax using Singapore tax rate of 18% |
132,453 |
114,103 |
Effect of reduction in tax rates |
— |
(17,981) |
Effect of different tax rates in other countries |
13,013 |
20,118 |
Tax incentives and income not subject to tax |
(27,924) |
(12,189) |
Expenses not deductible for tax purposes |
38,433 |
76,759 |
Utilisation of tax benefits |
(6,118) |
(4,442) |
Over provided in prior years |
(23,400) |
(41,759) |
Deferred tax benefit not recognised |
8,241 |
990 |
Others |
(3,747) |
165 |
Income tax expense |
130,951 |
135,764 |
On January 22, 2009, the Minister for Finance announced in his Budget speech that the corporate income tax rate will be reduced from 18% to 17% from the year of assessment 2010. The tax expense for the Company and its Singapore subsidiaries within the Group for the year ended December 31, 2008 have been computed at the rate of 18%, being the corporate income tax rate in effect as at that date.
The following items have been included in arriving at profit for the year:
|
|
|
Group |
|
|
|
2008 |
2007 |
|
|
Note |
S$’000 |
S$’000 |
|
|
|
|
|
a. |
Staff costs |
|
|
|
|
Staff costs |
|
698,409 |
650,087 |
|
Included in staff costs are: |
|
|
|
|
Share-based payments |
|
31,253 |
26,237 |
|
Contributions to: |
|
|
|
|
– defined benefit plan |
|
3,302 |
4,338 |
|
– defined contribution plan |
|
28,593 |
26,187 |
|
|
|
|
|
b. |
Other expenses |
|
|
|
|
Allowance made / (written back) for impairment losses |
|
|
|
|
– property, plant and equipment |
6 |
7,807 |
219 |
|
– investments in subsidiaries |
|
— |
226 |
|
– interests in associates |
|
— |
918 |
|
– interests in joint ventures |
|
— |
560 |
|
– interests in other investments |
|
486 |
(619) |
|
– receivables |
|
1,291 |
(10,290) |
|
– investment properties |
7 |
69 |
555 |
|
– intangible assets |
16 |
— |
110 |
|
Allowance made / (written back) for: |
|
|
|
|
– inventory obsolescence |
|
2,465 |
(189) |
|
– foreseeable losses on construction contracts |
|
2,957 |
963 |
|
Amortisation of intangible assets |
16 |
102 |
2,118 |
|
Audit fees paid / payable |
|
|
|
|
– auditors of the Company |
|
1,421 |
907 |
|
– other auditors |
|
614 |
1,409 |
|
Non-audit fees paid / payable |
|
|
|
|
– auditors of the Company |
|
119 |
151 |
|
– other auditors |
|
307 |
390 |
|
Depreciation of property, plant and equipment, and investment properties |
|
194,863 |
180,741 |
|
Professional fee paid to directors or a firm in which a director is a member |
|
97 |
632 |
|
Operating lease expenses |
|
18,623 |
18,081 |
|
Property, plant and equipment written off |
|
3,203 |
1,154 |
|
Intangible assets written off |
16 |
100 |
3 |
|
Bad debts written off |
|
237 |
3,799 |
|
|
|
|
|
c. |
Non-operating income (net) |
|
|
|
|
Net exchange loss |
|
(19,564) |
(10,056) |
|
Net change in fair value of derivative instruments Grants received |
|
(36,668) |
922 |
|
– income related |
|
83 |
67 |
|
Gross dividend income |
|
9,771 |
6,985 |
|
Gain / (Loss) from disposal of |
|
|
|
|
– property, plant and equipment (net) |
|
18,393 |
4,788 |
|
– investment properties |
|
— |
5,125 |
|
– subsidiaries |
|
— |
5,284 |
|
– associates |
|
— |
46,865 |
|
– joint ventures |
|
35 |
261 |
|
– other financial assets |
|
(38,135) |
(72,320) |
|
Interest income |
|
|
|
|
– associates and joint ventures |
|
94 |
— |
|
– banks and others |
|
35,772 |
46,709 |
|
|
|
|
|
d. |
Material and unusual items included in: |
|
|
|
|
Non-operating income (net) |
|
|
|
|
Gain on divestment of investments |
|
— |
276,557 |
|
Foreign exchange losses arising from Unauthorised Transactions in a wholly-owned subsidiary of Sembcorp Marine Ltd |
(i) |
(43,749) |
(302,922) |
|
|
|
(43,749) |
(26,365) |
|
Income tax expense on material and unusual items above |
|
— |
(49,517) |
|
Net material and unusual items before minority interests |
|
(43,749) |
(75,882) |
|
Less: Minority interests |
|
16,821 |
44,860 |
|
|
|
(26,928) |
(31,022) |
| i. |
Arising from the various unauthorised foreign exchange transactions entered into previously by an employee of a subsidiary of the Company, Sembcorp Marine Ltd (“SCM”), for the account of one of its wholly-owned subsidiaries, Jurong Shipyard Pte Ltd (“JSPL”), S$302.9 million was charged to the income statement in 2007.
During the year, another S$43.7 million had been charged to the income statement following the full and final amicable settlement of BNP Paribas’s claim of S$73.1 million, strictly on commercial basis.
Going forward, JSPL intends to recover the S$289.9 million paid to Societe Generale (“SG”) in 2007 as JSPL’s position is that the underlying transactions with SG are not valid and binding. If JSPL succeeds in doing so, there will be an inflow of funds to be recognised in the financial statements at that relevant point in time. |
| |
|
| ii. |
Certain underbillings relating to prior years had been noted between two subsidiaries. No material impact on Group turnover and PATMI has arisen from this. Its net impact has been recognised in the current year, increasing profit attributable to minority interests and decreasing the profit attributable to the shareholders of the Company. |
|
|
|
|
|
