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.
- Read this at SGinvestors.io -
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.
- Read this at SGinvestors.io -
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.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank savings account this December: ✨Earn up to S$1,000 cashback reward 🎟 and win an XPENG G6 SUV 🚙 !
