Sembcorp (SGX:U96) reported a strong set of 1H23 results, with profit from continuing operations rising 56% y-o-y to S$608m – the coal business was reported as a discontinued operation post approval of the sale of Sembcorp Energy India Ltd (SEIL).
- Read this at SGinvestors.io -
Growth in conventional energy may normalise going forward
Growth in Renewables was expected with the recent acquisitions, but focus is likely to be on the Conventional segment going forward, as 1H23 may be the peak of profits due to several factors.
In 1H23, the higher Uniform Singapore Energy Price (USEP) price was one of the drivers of higher profit at the Singapore cogeneration plant, and there was a boost from higher-than-usual exposure to uncontracted capacity with the preparation for the beginning of two long-term power purchase agreements (PPAs).
- Read this at SGinvestors.io -
Capital recycling likely the focus ahead; look forward to Investor Day in early November for updates on renewables targets
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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