- Sembcorp Industries (SGX:U96) reported FY23 net profit of S$970m, +11% and marginally ahead of MIBG/street forecast.
Strong finish to the fiscal year
- 2H23 profit of S$426m grew 15% y-o-y. Revenue for 2H23 fell 14% y-o-y due to lower power prices; this was partly offset by higher revenue from renewable and other business segments.
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- While Sembcorp's near-term earnings have likely peaked, the green transition theme is intact with a de-risked revenue profile.
Continued growth for renewables segment
- Net profit before EI for the renewables segment grew 42% to S$200m, from S$141m in FY22, driven by contributions from acquisitions in China and India, as well as higher contributions from energy storage and solar operations in Singapore.
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- Over the year, Sembcorp secured 4GW of gross renewables capacity through organic growth and M&As, bringing group’s renewable capacity to 13.8GW, at 55% of its 2025 target of 25GW.
- Integrated Urban Solutions revenue fell 6% y-o-y to S$418m due to cessation of a public waste collection contract.
Receding tailwind of elevated power prices
- Read more at SGinvestors.io.
