Sembcorp (SGX:U96)'s FY25 revenue and adj. PATMI were within expectations at 94% and 95%. 2H25 adj. PATMI declined 2.5% y-o-y to S$512mil.
Earnings faced multiple pressure points, including lower electricity spreads, imported power losses, a drop in gas trading margins, and widening curtailment in China. The acquisition of 20% stake in Senoko in June offset some of the weakness. FY25 dividend per share raised 9% to 23 cents.
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The Positive
Growth in renewable capacity.
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In FY25, India's capacity jumped 27% y-o-y to 3.4 GW, largely due to a doubling of solar power capacity. Singapore registered a 24% increase to 1 GW.
The Negative
Weakness in gas earnings.
2H25 EBITDA for gas dropped 25% y-o-y to S$362mil. Re-contracting spreads in Singapore for 2023 have collapsed by around 50%, from S$70-75 to S$30-35 per MWh.
Other pressure points for gas earnings were the decline in gas trading margins and weakness in UK Wilton earnings due to softer prices and weak demand from petrochemical customers.
Outlook
Gas:
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Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
