SEMBCORP INDUSTRIES 1H20 RESULTS In this article, I provide my view on Sembcorp Industries’ latest 1H20 performance followed by some commentary pertaining to its demerger exercise with Sembcorp Marine. Sembcorp Industries announced after market hours on Friday that the Group has posted a net loss of S$131m and warns of worse to come. Sembcorp Industries posting such a substantial net loss might have been a surprise to some. While its marine division, Sembcorp Marine had earlier on 15 July announced a massive loss of S$192m for 1H20, the expectations are for Sembcorp Industries’ Energy division to offset those losses and still post a marginal profit for 1H20. Instead, Sembcorp Industries’ Energy division recorded a net loss of S$5m in 1H20 vs. S$177m in profits for 1H19. This was due to substantial extraordinary losses incurred for 1H20, amounting to S$161m for this division. Without this supposed “one-off exceptional items”, the adjusted normalized net profit for...