Sembcorp Industries - Phillip Securities 2023-11-08: Investing S$14bn To Build Renewable Portfolio

• Sembcorp announced a capex plan of S$14bn from 2024-2028, 75% of which would beinvested in renewable energy assets to raise gross installed capacity to 25GW from 8.7 GW currently.
• This will be funded by operating cash flow from existing gas-based energy assets (50%), project debt (30%), corporate debt, capital recycling, and private credit from third parties.
• - Read this at SGinvestors.io -

Sembcorp Investor Day Highlights

Plans to invest S$14bn from 2024-2028

• Sembcorp plans to invest S$14bn from 2024-2028, of which
  • - Read this at SGinvestors.io -
  • Another S$1.4bn will be spent on decarbonization solutions,
  • S$0.7bn on integrated urban solutions,
  • S$1.1bn on investments into hydrogen-ready assets, and
  • S$0.3bn for replacement capex.
• This amount will be funded by operating cash flow from existing energy assets (50%), project debt (30%), capital from recycling and third parties. This implies continued strong operating cash flow (>S$1.4bn per year) from existing energy assets. There is no need for equity raising at Sembcorp level.

Minimal impact from Energy Market Authority (EMA)’s proposal to centralise gas procurement for Singapore.

• Read more at SGinvestors.io.

Peggy Mak Phillip Securities Research | https://www.stocksbnb.com/ 2023-11-08 SGinvestors.io

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