SEMBCORP LOGISTICS REPORTS STEADY PROFITS FOR 2002

SEMBCORP LOGISTICS REPORTS STEADY PROFITS FOR 2002

   SembCorp Logistics, the large Singapore-based logistics group, reported a net profit of S$78 million ($45 million) for 2002, down 10 percent from the previous year.

   The decrease was due to the sale of a major portion of the group’s marine services business. A S$27-million exceptional gain on the sale was recorded in 2001, but did not occur again last year.

   Profit before exceptional items amounted to S$119 million ($68 million) in 2002, an increase of 18 percent on the S$101 million profit figure for 2001.

   Group revenue decreased by 5 percent, to S$448 million ($257 million) in 2002, from S$473 million in 2001. Revenue from continuing operation was virtually unchanged, at S$434 million ($249 million), as compared to S$432 million in 2001.

   SembCorp Logistics is a strategic partner of the Kuehne & Nagel forwarding and logistics group, with whom it has cross-shareholdings.

   SembCorp Logistics said that its supply chain business in each of its three key markets — Singapore, China and India — produced higher earnings before interest and tax in 2002 than in the previous year.

   “Despite uncertainties in the global market, such as the possible outbreak of a war in Iraq, we are confident of performing well and achieving a 15-percent growth in profit after tax and minority items over 2002,” said Koh Soo Keong, president and chief executive officer of SembCorp Logistics.