SINGAPORE--Singapore's state-investment firm Temasek Holdings
Pte. Ltd. said Thursday its net profit in the year ended March 31
fell 16% due to lower contributions from investments and its
portfolio companies amid sluggish global growth, and flagged
concerns over spillover impact from tepid U.S. and European
economies.
Net profit for the fiscal year fell to 10.7 billion Singapore
dollars (US$8.4 billion) from S$12.7 billion in the previous
year.
"Asia's long-term growth potential remains healthy, though there
will be structural and policy risks along the way, especially in
the medium term," Temasek Chairman S. Dhanabalan said in a
statement. "In the near term, Europe and the U.S. present
significant risks, as well as potential opportunities."
The state investor has a net cash position, which it will
maintain in order to take any investment opportunities that may
arise, Mr. Dhanabalan added.
Temasek owns controlling stakes in some of Singapore's biggest
corporations, including Singapore Airlines Ltd. (C6L.SG), shipping
company Neptune Orient Lines Ltd. (N03.SG) and flagship telco
Singapore Telecommunications Ltd. (Z74.SG). Rising costs and weaker
worldwide demand weighed on the performance of some of these
companies over the 12 months to March 31.
Temasek--the world's ninth-largest state investor according to
the Sovereign Wealth Fund Institute--has in recent years sought to
shift its investment focus toward emerging markets away from its
home Singapore market and mature-market financial services. The
firm has also expanded its China portfolio and steadily built
investments in energy and resources.
In the year ended March 31, Temasek spent S$22 billion on new
investments. The energy and resources sector was a major focus for
the company, having invested S$2 billion investment in U.S. shale
energy firm FTS International and with a S$1.3 billion investment
in U.S. fertilizer producer Mosaic Co. (MOS), among others.
After a recent rebalancing of its investment in the Hong
Kong-listed shares of several Chinese banks, Temasek now holds a
5.3% stake in Industrial and Commercial Bank of China Ltd.
(1398.HK), a 7.4% stake in China Construction Bank Corp. (0939.HK)
and a 3.7% stake in Bank of China Ltd. (3988.HK).
Temasek said it made divestments of S$15 billion, including in
Indonesia's Chandra Asri Petrochemical (TPIA.JK), Singapore-listed
Hutchison Port Holdings Trust (NS8U.SG), India's ICICI Bank Ltd.
(532174.BY) and Kaisa Group Holdings Ltd. (1638.HK)
"We have a resilient portfolio that will continue to deliver
steadily over the long term," Temasek Chief Executive Ho Ching said
in the statement. "Over the next few years, we will continue to
maintain a relaxed watchfulness."
Write to Chun Han Wong at chunhan.wong@dowjones.com and Martin
Vaughan at martin.vaughan@dowjones.com