SCI

SCI: is considering the acquisition of distressed assets in India, has dispatched a team to seek investments in Myanmar, and is also seeking opportunities in Indonesia, says CEO Tang Kin Fei in an interview. Adds, “we’re still very bullish; over a longer period of time, we still see increasing demand for devt in the Asian region. With this growth and population moving from rural areas to new urbanization there is demand for power and water.” SCI currently gets 68% of its profit from utilities, but aims to boost its energy output by 72% in the next three to four years, and water production by 37% in 4-6 years. The co has moved into Oman through a venture and expanded into renewable energy with the acquisition of a stake in a wind farm in China. Sembcorp is developing a coal-fired power plant in India under a partnership, and may expand its utilities business in the country by adding more capacity to the power plant that is under construction, or acquire distressed assets. In Myanmar, the co is keen on developing so-called townships, where Sembcorp could build industrial parks and apartments, before branching out to the supply of power and water. In Singapore, Sembcorp is building its second combined- cycle gas turbine cogeneration plant to increase its power capacity to 1,615 MW from 815 MW. The facility, which will also produce 400 tons per hour of steam, will start initial operations at the end of 2013. Sembcorp also started operations on its biggest industrial wastewater treatment plant in Singapore to produce as much as 9,600 cubic meters of recycled water a day. While the co expects margins from its utilities business in Singapore to face pressure next year with new power suppliers in the market, Tang still predicts “decent spreads” as his competitors have a higher debt burden with newer plants. Sembcorp also supports the liberalization of power supply to homes in Singapore, Tang said, as it’s in a “good position” with a ready customer base through its waste-collection operation in the city state. Tang believes, “as long as there’s global growth and demand, I have growth opportunities for us. We are good hunters.”