In the context of constantly evolving requirements
of disclosure, transparency and corporate governance,
we aim to provide investors with an accurate,
coherent and balanced account of the Group’s
performance. Sembcorp has a dedicated investor
relations team and communicates with the investing
public through multiple platforms and channels.
These include group briefings to analysts, investors
and the media; one-on-one meetings with
shareholders and potential investors; investor
roadshows as well as the
investor relations section
of our corporate website. In addition, company
visits and facility tours are also organised to help
investors gain insights into the Group’s operations.
PROACTIVE COMMUNICATION WITH THE FINANCIAL COMMUNITY
During the year, senior management and the
investor relations team continued to actively engage
with the financial community. We held over 150
one-on-one and group meetings with shareholders,
analysts and potential investors. These included
non-deal roadshows to international financial
centres. In the Asia Pacific, we covered Singapore,
Malaysia and Australia; in Europe, England, Scotland
and Switzerland; and in North America, Canada
and the US. We also participated in six investor
conferences: the Credit Suisse 17
th Annual Asian
Investment Conference in Hong Kong, and in
Singapore, the Maybank Invest ASEAN Conference
the dbAccess Asia Conference, the Citibank ASEAN
Investor Conference, the Macquarie ASEAN
Conference and the Morgan Stanley 13
th Annual
Asia Pacific Summit. We also continued to organise
site visits to our facilities on Jurong Island, Singapore
to provide analysts and investors a first-hand look at
our operations and allow them to gain a better
understanding of Sembcorp’s capabilities and
operational track record.
COMMITMENT TO GOOD CORPORATE GOVERNANCE
As a strong endorsement of Sembcorp’s excellence
in corporate governance management and
disclosure, Sembcorp won top awards in three out
of five categories at the 2014 Singapore Corporate
Awards. These included gold awards for Best
Managed Board and Best Annual Report for
companies with S$1 billion and above in market
capitalisation, as well as the gold award for Best
Chief Executive Officer, which was awarded to
Sembcorp Industries’ Group President & CEO Tang
Kin Fei. The Singapore Corporate Awards celebrate
the best in corporate governance among listed
companies, as well as individuals who, through
their corporate practices, have helped to raise
Singapore's standard of governance and disclosure.
The awards are organised by the Institute of
Singapore Chartered Accountants, the Singapore
Institute of Directors and The Business Times, and
supported by the Accounting and Corporate
Regulatory Authority and the Singapore Exchange.
In 2014, Sembcorp also improved its ranking
on the Governance and Transparency Index (GTI)
and became the third-highest ranked company on
the GTI. A well-respected ranking exercise by the
National University of Singapore Business School’s
Centre for Governance, Institutions and
Organisations in collaboration with CPA Australia
and The Business Times, the GTI assesses the
transparency of 644 Singapore-listed companies’
financial disclosures as well as their governance,
ethics and rigour in financial reporting.
TOTAL SHAREHOLDER RETURN
Sembcorp Industries’ last traded share price in
2014 was S$4.45, and the company ended the
year with a market capitalisation of S$8.0 billion.
The company’s share price averaged S$5.16 during
the year, registering a high of S$5.55 in April
and a low of S$4.10 in December. Daily turnover
averaged 2.1 million shares. In May 2014, we paid
out a final tax exempt one-tier dividend of 17 cents
per ordinary share for the financial year 2013,
comprising a final ordinary dividend of 15 cents
per ordinary share and a final bonus dividend of
2 cents per ordinary share.
Falling oil prices, exacerbated by the decision
of the Organization of the Petroleum Exporting
Countries (OPEC) to maintain oil production levels,
sparked a sell-off in oil and gas-related stocks
globally. The negative sentiment on the sector has
had an impact on the performance of Sembcorp
Industries shares, and for 2014, total shareholder
return stood at negative 16%. In relative terms,
this performance compared favourably against the
FTSE ST Oil & Gas Sector Index’s negative 23%;
but against the broader market, this was below
the Straits Times Index’s positive 10% return
and the MSCI Asia Pacific ex-Japan Industrials
Index’s flat performance.
Based on feedback from shareholders and in line
with Sembcorp’s commitment to deliver shareholder
value, we paid an interim dividend for the first
time to shareholders, increasing the frequency of
dividend payments to twice a year. For the financial
year 2014, an interim tax exempt one-tier dividend
of 5 cents per ordinary share was declared
and paid to shareholders in September 2014.
In addition, a final tax exempt one-tier dividend
of 11 cents per ordinary share has been proposed,
subject to approval by shareholders at the next
annual general meeting. Together with the interim
dividend, this brings our total dividend for FY2014
to 16 cents per ordinary share.
SHAREHOLDER INFORMATION
In 2014, institutional shareholders as a group
continued to dominate Sembcorp’s shareholder
base. Other than our major shareholder Temasek
Holdings which held 49.5% of our shares at the
end of 2014, institutional shareholders accounted
for 33.3% of our issued share capital or 66% of
free float, while retail shareholders
1 and unidentified
shareholders
2 held 17.2% of issued share capital or
34% of free float. In terms of geographical spread,
excluding the stake held by Temasek Holdings,
our largest geographical shareholding base was
Europe with 14% of issued share capital, followed
by shareholders from North America and Asia
which accounted for 12% and 9% of our
company’s issued share capital respectively.
