Sembcorp Industries - DBS Research 2023-11-07: Powering Up The Energy Transition

Sembcorp Industries - Powering Up The Energy Transition

Sembcorp (SGX:U96) | SGinvestors.ioSembcorp (SGX:U96)
  • Sembcorp Industries (SGX:U96) is uniquely positioned in the energy transition drive, with a full suite of competitive and green energy solutions.

Energy Transition Roadmap through 2028

Outpaced 2025 targets.

  • - Read this at -
  • Emission intensity nearly halved to 0.3 tCO2e/MWH (vs. the target of 0.4) while financial metrics (ROE, Debt/EBITDA, EBITDA/Interest) are all tracking above targets as well.

What are falling behind targets?

  • Urban development land sales (which have stalled since COVID), and % share of profit from sustainable solutions due to the strong recovery of Singapore power market that saw earnings rise 6x from 2020 level as well as the muted growth in urban development.
  • - Read this at -

Stepping up green transition goals by 2028.

  • Sembcorp aims to triple its gross renewable installed capacity from 8.7GW to 25GW by 2028. Emission intensity is to halve to 0.15 tCO2e/MWh.
  • ROE is expected to moderate from current 19% to 12%, factoring in normalized gas assets earnings (15% ROE) with additional capex to decarbonize while renewables ROE remain stable at 10%.
  • Strategy for urban development will be released mid-2024 pending the onboard of the new CEO for the segment end of this year. The key market focuses remain on China, India, Singapore, and other SEA countries like Vietnam and Indonesia.

Sembcorp expects to spend S$14bn capex in 2024-2028

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Pei Hwa HO DBS Group Research | 2023-11-07

Previous report by DBS:
2023-08-07 Sembcorp Industries - Raising The Bar, Again.

Price targets by 3 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


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