SEMBCORP AT A GLANCE
WHO WE ARE
Sembcorp Industries is a leading energy, water and marine group operating across five continents worldwide. With facilities of around 11,000 megawatts of gross power capacity and close to nine million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in offshore and marine engineering, as well as an established brand name in urban development.
Group FY2016 Snapshot
TURNOVERS$7.9billionUS$5.5 billion |
EBITDAS$1.3billionUS$919 million |
PROFIT FROM OPERATIONS (PFO)S$909millionUS$635 million |
NET PROFITS$395millionUS$276 million |
TOTAL ASSETSS$22.3billionUS$15.6 billion |
RETURN ON EQUITY6.2% |
TOTAL DIVIDEND8.0cents per ordinary share |
EMPLOYEES8,000 |
GLOBAL PRESENCE15countries |
bn: billion; m: million; EBITDA: earnings before interest, taxes, depreciation and amortisation
FY2016 Key Figures
|
SEMBCORP UTILITIES
100%
|
UTILITIES
TURNOVER
S$4.1bn
US$2.9bn
PFO
S$737m
US$515m
NET PROFIT
S$348m
US$243m
|
|
SEMBCORP MARINE
60.9%*
|
MARINE**
TURNOVER
S$3.5bn
US$2.5bn
PFO
S$171m
US$119m
NET PROFIT
S$79m
US$55mm
|
|
SEMBCORP DEVELOPMENT
100%
|
URBAN DEVELOPMENT
TURNOVER
S$7.0m
US$4.9m
PFO
S$38m
US$27m
NET PROFIT
S$33m
US$23m
|
* As at December 31, 2016. Shareholding figures are calculated based on the number of issued ordinary shares excluding treasury shares
** Figures taken at Sembcorp Marine level
** Figures taken at Sembcorp Marine level
Vision
To be a global company, a leader in our industry sectors by responsibly operating and excelling in sustainable businesses that support development, improve the quality of life and deliver long-term value and growth.
Mission
Vital Partners. Essential Solutions.
As a vital partner to our customers, we leverage our group strength and sector expertise to deliver essential solutions that enable them to do their business better or improve the quality of life. In partnership with our stakeholders, we build sustainable businesses that deliver long-term growth and create value for all – our customers, employees, shareholders, partners and communities in which we operate.
Our Strategic Focus
Our Values
At the core of how Sembcorp operates are our three values: Insight, Integrity, and Integral. Our values are translated into day-to-day action and practical behaviour through our group-wide policies and frameworks, creating within Sembcorp a common culture founded on these values.
Code of Business Conduct and Policies
We are guided by well-defined policies, frameworks and a code of business conduct, which express the high standards of behaviour and integrity that the company requires from our employees worldwide. These cover all facets of business and personal conduct across the Group, from governance, risk and compliance matters to ethics and employee conduct.
Sembcorp Core Competency Framework
Sembcorp’s core competency framework is based on our values of Insight, Integrity and Integral and spells out the competencies and behaviours expected of a Sembcorp employee. The framework is deployed through recruitment, assessment, development and career progression, promoting transparency in what is expected of every Sembcorp employee.
OUR MATERIAL ISSUES
At Sembcorp, we believe in building sustainable businesses that support development, improve the quality of life and deliver long-term value and growth. Through engagement with our stakeholders and our materiality identification and review process, the following issues have been identified to be material to us. Mitigating the risks and pursuing the opportunities presented by these issues are part and parcel of how we drive success for the Group.
Further details of our materiality process and material issues may be found in our Environmental, Social and Governance Review as well as in other sections of this annual report.
HOW WE CREATE VALUE
Our Strategy
UTILITIES
- Expand our global presence in growth markets and build new capabilities to enhance competitiveness
- Grow our energy business with a balanced portfolio of
high-efficiency thermal and renewable energy assets, including gas, coal, wind, solar and biomass, as well as energy-from-waste assets - Deliver specialised total water management solutions, including the upgrading of existing wastewater treatment plants and the provision of pre-treatment and other services
- Leverage our leadership in utilities supply for multiple customers on industrial sites
MARINE
- Offer diversified solutions for the offshore and marine industry, and expand into new businesses to capture existing and growth markets
- Enhance competitiveness through technology and innovation, including strategic investments in new solutions and the development and ownership of proprietary designs
- Leverage strong track record and integrated yard facilities for quality and on-time delivery to strengthen our position as a leading player in the global market
URBAN DEVELOPMENT
- Leverage our core competency in transforming raw land into self-sufficient urban developments and delivering the economic engine to support industrialisation and urbanisation
- Build on strong brand name to attract high-quality local and international investments
- Enhance value of our land bank, such as through the development of commercial and residential real estate at choice sites
Harnessing Innovation
We recognise that technology and innovation are important in maintaining and enhancing our relevance, profitability and competitive advantage. This includes applied research and development and improvements that optimise our operations and enhance our efficiency, as well as new technologies and methodologies that offer wider sustainability benefits.
Sembcorp’s Technology Advisory Panel, which includes our Chairman, Group President & CEO and other invited experts, provides strategic direction for our technology and innovation programmes. The panel oversees the development and application of significant emerging technologies in the energy and water sectors and provides guidance to Sembcorp’s leadership on technological trends and
opportunities. It is supported by an in-house Group Technology department.
Headed by our Chief Technology Officer, our Group Technology department oversees our technology and innovation efforts which seek to apply new and improved proven technologies to increase efficiency, reduce costs and drive growth. Our ongoing engagement with venture capitalists, technology companies and tertiary research institutes helps us keep abreast of rapid technology advancements, enabling us to adopt early innovations to strengthen our competitive edge.
Delivering Sustainable Value and Growth
Sembcorp is committed to delivering long-term value and growth. We aim to create value and achieve growth by enhancing our existing income sources and deepening our investment in assets which add the most value, while pursuing new business opportunities with agility.
We understand that making the right decisions about our portfolio is key to value creation. We actively manage our portfolio of assets, and take a disciplined approach, applying a stringent evaluation process to all our projects and investments.
To deliver sustainable growth, we are focused on developing a strong project pipeline, including both greenfield and brownfield investments, that will expand our income base and provide visibility on future growth. We also actively invest in sustainable and green business lines, which give us an edge in an increasingly resource-scarce world.
Above all, we recognise that sustainable value and growth can only be achieved by having talented people, strong capabilities, the right solutions and innovation, as well as robust governance and discipline across all our businesses.
