Sembcorp Industries - DBS Research 2023-02-22: Stellar FY22 Results; From Strength To Strength

• Sembcorp (SGX:U96)'s FY22 net profit almost tripled y-o-y to S$848m, slightly higher than the consensus of S$820m. Results could have been even stronger if not for an S$84m provision made for the Myingyan power plant in Myanmar, partially offset by a S$60m gain from gas hedges in 2H. See Sembcorp's announcement dated 21 Feb 2023.
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Myanmar power plant faces forex and sanction risks.

• While Sembcorp continues to receive prompt payments from its Myanmar Myingyan power plant, out of prudence, it has made provisions totalling S$84m in 2H22. This is a one-off expected credit loss (ECL) provision made for the power plant’s service concession receivables in view of the heightened economic and currency risks. Post the ECL provision, the net book value of Sembcorp Myingyan Power Company as at end-2022 was US$49m.
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Special dividend to reward shareholders.

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Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-08-11 Sembcorp Industries - Short-term Setback, Long-term Engines Intact.

Previous report by DBS:
2025-02-28 Sembcorp Industries - Powering Growth & Yield, Target Price Raised To S$8..

Price targets by 2 other brokers at Sembcorp Target Prices.

Listing of research reports at Sembcorp Analyst Reports.

Relevant links:
Sembcorp Share Price History,
Sembcorp Announcements,
Sembcorp Dividend Payout Dates & Corporate Actions,
Sembcorp News