1H 2024 Financial Results Webcast & Q&A Session

On the loss from the legacy offshore and marine (O&M) assets, is it possible to give us a further breakdown as to how much was due to the Seatrium shares, Floatel, Dyna-Mac and vendor notes?

LCH

Thank you for the question. I will ask CFO to respond.

KC

Thanks for the question. On the breakdown of the S$209 million loss from the legacy O&M assets, approximately S$67 million of that is due to the fair value losses from Seatrium shares. It is relatively volatile. I will cover that later on. On the associates, Floatel and Dyna-Mac, the loss was about S$34 million, and the remaining S$108 million was the result of the vendor notes portion of it. That adds up to the S$209 million. Just coming back to the Seatrium shares – it is relatively volatile. If you look at the closing price, Seatrium shares have done very well over the course of the last couple of weeks. The variance that we are looking at in terms of the S$67 million loss, if you look at the closing price as of yesterday, we would have written back approximately S$21 million, in terms of the timing of the closing price. On Infrastructure, the integrated power business is still very strong, just slightly more than 1H last year. How should we think about the business dynamics ahead?

LCH

Cindy, do you want to provide some insights?

CL

Thank you, CEO. Thanks, Pei Hwa. I think if you were to compare with 2H 2023, there is always seasonality when it comes to energy and power performance. In terms of how we look at the integrated power business, suffice to say that based on the breakdown of our long-term contracts that we have secured, you will see that 60% of our contracted capacity is signed on for more than three years. I think this augurs very well because this will give us predictability of future cash flow. The second, very important point is that beyond the healthy contracted spread that we have secured, we are also very laser-focused on improving the operating margins by enhancing the efficiency of our generation units as well as ensuring high reliability. Especially in a very volatile market, you do not want to have reliability issues when it comes to outages. As CEO presented earlier, we have planned for and will be embarking on a turbine upgrade come early next year. This is on the back of the very successful performance of the first turbine upgrade. Such continuous planning and investments behind the upgrades of our generation units will position us very well in the quarters ahead.

Your asset management revenues for Real Estate had a nice jump. But on the profit side, it appears quite flat-ish. I am just curious whether, with the contribution from Aermont, how does it look like from the profit angle? Are there any one-offs that we should be aware of? If not, cost appears quite high.

LCH

Thank you, Derek. Can I invite Christina to address this question?

CT

Hi Derek, good morning. With regard to our asset management revenue1, the contribution from Aermont, in terms of revenue is about S$30 million because we only recorded its contributions since April this year when we closed the deal. So it is only for three months. For the profitability, we actually also netted off amortisation. I mean in accounting terms, you buy it so you have to apply some amortisation to the business you acquired so it is not just pure profits. The net profit is actually less amortisation. Could you give us some colour on your size of your data centre funds from the private funds side? Do you have any ambitions that you can share, in terms of growth, in terms of FUM? I know you are doing a lot of stuff there. If you can give us a growth target, it would be helpful. My last question is on Genting Lane Data Centre. I think it is TOP-ing nicely. Is it time that you should be thinking of monetising that?