- Sembcorp reported stronger-than-expected net profit for 2022 with the highlights being its conventional energy segment as well as contribution from its new renewable assets in China.
- In our view, Sembcorp is likely to undertake more M&As in the renewables space in 2023 as it has S$3.7b to capitalise on such opportunities – this could drive share price performance.
- - Read this at SGinvestors.io -
Sembcorp's 2022 earnings above expectations.
- Sembcorp Industries (SGX:U96) reported better-than-expected 2022 results with revenue from continuing operations up 22% y-o-y and net profit from continuing operations (before exceptional) up nearly 4-fold to S$727m. See Sembcorp's announcement dated 21 Feb 2023. The robust y-o-y performance was due to the renewables and conventional energy business segments, both of which registered >100% y-o-y net profit increases.
- - Read this at SGinvestors.io -
- Renewables segment the key highlight. Net profit before exceptional items for the Renewables segment jumped 150% to S$140m on the back of Sembcorp’s new acquisitions, namely:
- Shenzhen Huiyang New Energy (HYNE), and
- 35%-owned SDIC New Energy.
- In addition, higher power prices for the company’s solar assets boosted its renewables’ bottom line.
- To recap, Sembcorp acquired 3.6GW of renewables capacity through acquisitions and organic growth across key markets, resulting in 9.8GW of renewables capacity as at end-22.
High but manageable debt levels.
- Read more at SGinvestors.io.
