Forecasts
- Net Profit Forecast: Analysts predict Sembcorp Industries to report a net profit of 993.3 million Singapore dollars (US$737.4 million) for 2023, compared to S$848 million in 2022.
- Revenue Forecast: The full-year revenue projection stands at S$7.23 billion, down from S$7.8 billion in 2022 when including discontinued operations.
Stock Performance
- Despite a 7.65% decline in the second half of 2023, the stock currently trades at S$5.75, showcasing a year-to-date gain of 8.3%.
Key Points to Monitor
Earnings from Conventional Energy
- Expectations are set on earnings from the conventional-energy segment, which is anticipated to offer a stable earnings profile based on the increase in power-purchase agreements in Singapore.
Renewables Expansion
- Sembcorp’s goal to increase its gross installed renewables capacity to 25 gigawatts by 2028 highlights its commitment to energy transition and sustainable development.
Sustainability Targets
- The company aims to reduce its emissions intensity by half by 2028, aligning with its sustainable development goals.
Analyst Insights
- UOB Kay Hian analyst Adrian Loh emphasizes the positive aspects of Sembcorp’s ambitious five-year plan, particularly focusing on hydrogen as a key element in the energy transition.
For further information and analysis, please refer to Amanda Lee’s full report on the upcoming release.