Sembcorp Industries has reported a stable performance for the first half of 2025, with net profits reaching S$536 million, aligning with market forecasts. Despite an 8% year-on-year decline in revenue to S$2.94 billion, the company declared a 50% increase in dividends compared to the previous year. UOB Kay Hian maintains a “buy” rating on the stock, citing an attractive entry point for investors following a recent share price drop.
The company’s robust balance sheet, with net debt standing at S$7.38 billion and 81% of its debt on fixed rates, supports its financial stability. Sembcorp’s growth in the renewables sector, particularly in India, and contributions from new projects have bolstered profitability, despite modest curtailment risks in China. The acquisition of Senoko Energy is expected to further enhance earnings in the latter half of the year.
Adrian Loh, an analyst at UOB Kay Hian, noted that the market’s reaction to Sembcorp’s results was an overreaction, presenting a buying opportunity. “The market had likely placed high expectations for SCI to deliver strong 1H25 results,” he stated, emphasising the company’s strengths in renewables and its strategic positioning in Singapore’s power generation market.
Looking ahead, Sembcorp aims to continue its expansion in renewables and integrated urban solutions, with new business parks in Vietnam expected to drive growth. The company also plans to deliver a 600MW hydrogen-ready co-generation plant in Singapore, further solidifying its position in the energy sector.
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