Sembcorp Industries H1 underlying profit falls 25% on renewables unit weakness

Sembcorp Industries

13/08/2026 24:11

Overview
Singapore energy and urban solutions provider's H1 turnover rose 28% yr/yr to S$3.77 bln
Underlying net profit fell 25% yr/yr to S$369 mln
Expects stronger H2 performance and raised interim dividend

Outlook
Sembcorp expects 2H2026 underlying net profit to exceed that of 1H2026
Company sees stronger 2H2026 performance, supported by Alinta and higher land sales
Renewables segment expected to face seasonal and tariff-related headwinds in 2H2026

Result Drivers
GAS AND RELATED SERVICES WEAKNESS - Lower earnings in the UK after a customer exit and lower generation spreads in Singapore weighed on segment profit
RENEWABLES SEGMENT PRESSURE - Segment profit fell due to curtailment, loss of VAT refund, transition to market-based pricing in China, and weaker wind and solar resources
URBAN SOLUTIONS PROFIT DROP - Lower profit due to absence of contribution from SembEnviro after its disposal

Company press release: ID:nSN41yFr5

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Turnover
 
S$3.77 bln
 
H1 Underlying Net Profit
 
S$369 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy"
Wall Street's median 12-month price target for Sembcorp Industries Ltd is S$6.92, about 21% above its August 12 closing price of S$5.72
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)