Sembcorp Industries (SGX:U96) (Sembcorp) expects to incur losses for the full year ending 31 December 2020 (FY2020), with impairments (net of tax) of approximately S$89 million in its 2H2020 financial statements, announced in a profit guidance released on Monday 7 December.
Of the S$89 million, S$21 million impairment is for utilities assets for a wastewater treatment plant and a woodchip boiler facility on Jurong Island Singapore as sales volumes are expected to be adversely impaired by the exit of a major customer from its Singapore manufacturing site
S$8 million impairment will be for a dedicated wastewater treatment plant in Nanjing, China due to the termination of a service agreement, and the remaining S$60 million will be due to a revised strategy for the UK Power Reserve (UKPR) assets. The focus for the UKPR business is now on driving value from its existing portfolio, primarily in the grid services market and no longer include the provision of a platform for third parties to hedge or trade their positions.
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