SembCorp Industries reports strong 1Q2006 earnings growth

May 8, 2006

• PATMI before exceptional items grows 42% to $83.6 million
• PATMI up 566% to $481.9 million
• Proposed capital distribution of 15 cents per share

SembCorp Industries reported strong earnings growth for the first quarter ended March 31,
2006. Profit After Tax and Minority Interest (PATMI) before exceptional items (EI) grew
42% to reach $83.6 million, while PATMI was $481.9 million, up 566% over the same
quarter in 2005.

The main profit contributors to the Group continue to be its Utilities and Marine Engineering
businesses. PATMI before EI for Utilities grew 31% over 1Q2005 to $45.3 million, due
mainly to a turnaround to profitability by its offshore engineering unit. Underpinned by a
strong orderbook, Marine Engineering’s contribution to the Group PATMI before EI grew a
robust 70% to $25.1 million. The quarter saw growth across all of Marine Engineering’s
business segments and its orderbook reaching a record high of $6.8 billion, with completions
and deliveries until end-2009.

Following the sale of SembCorp Logistics (SembLog), which resulted in a gain of $463.3
million based on the offer price of $1.80 per SembLog share, the Company is proposing a
capital distribution of 15 cents per share in cash. The capital distribution will be subject to
shareholders’ and Court approval.

Group President and CEO Mr Tang Kin Fei said: “We continue to be committed to delivering
shareholder value and returns. With the divestment of our stake in SembCorp Logistics, we
are pleased to propose a capital distribution of 15 cents per share, which will return a total of
approximately $264 million, or 57% of the gain arising from the disposal to our shareholders.

“We are now a focused utilities and marine group. As shown by the strong performance and
consistent growth of these businesses, we are well-positioned to deliver a healthy 2006
performance.”

2006 Outlook
The Group’s overall performance for 2006 is expected to be better than that of 2005.

HIGHLIGHTS

Solid performance in 1Q2006

• PATMI of $481.9m, up 566%
• PATMI before EI of $83.6m, up 42%
• Turnover of $1.9bn

Healthy balance sheet maintained

• Net gearing at 0.04x
• Interest cover at 15 times
• EVA up from $43.2m in 1Q05 to $451.0m in 1Q06

Business Update

- Utilities

• Growth from UK and Vietnam operations
• Turnaround in Offshore Engineering
• Weak performance from China operations

- Marine

• Strong performance by all business segments, led by rig building
• Substantial orderbook of $6.8bn, with completions and deliveries until end-2009

- Enviro

• Orderbook at $625.6m
• Focus on Pre-Disposal Treatment and Waste-to-Resource
• Established Jiangsu SembCorp Chunxing, a 50:50 joint venture to capitalise on the growing demand in China for recycled lead
  

- Engineering & Construction

• Continued focus on process engineering projects
• Business environment remains competitive
  

STRATEGIC MILESTONES

• Settlement of Solitaire arbitration
  - Settled the Solitaire case for €350m
  - $65m charge taken in 1Q2006
  
• Sharpened focus, rewarding shareholders
  - Completed the divestment of entire 60.01% stake in SembCorp Logistics on April 3, 2006 - Net gain of $463 million based on offer price of $1.80 per SembLog share
  - Proposed capital distribution of 15 cents per share (tax free) subject to shareholders’ and Court approval
  - Total payout is approximately $264m1 or 57% of gain from divestment