Sembcorp Industries - Strong 2022 Results With Both Energy Segments Continuing To Outperform

- 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.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-02-22
Read also UOB's most recent report:
2023-03-14 Sembcorp Industries - Energised For The Next Phase Of Growth.
Price targets by 4 other brokers at Sembcorp Target Prices.
Listing of research reports at Sembcorp Analyst Reports.
Relevant links:
Sembcorp Share Price History,
Sembcorp Announcements,
Sembcorp Dividends & Corporate Actions,
Sembcorp News Articles