Sembcorp Industries Ltd

XMUN:SBOA

Results: Sembcorp reported first-half underlying net profit of SGD 369 million, down 25% year on year, as weaker gas spreads and renewables resource conditions weighed on the period.

Alinta: The June acquisition of Alinta materially expands the group’s earnings base; management said the business delivered strong first-half earnings on a pro forma basis and should contribute about SGD 100 million of net profit in the second half of 2026.

Dividend: The interim dividend was raised to SGD 0.11 per share from SGD 0.09 a year ago, with management signaling continued dividend growth even as the company deleverages.

Outlook: Management was confident that the second half of 2026 will be meaningfully stronger, helped by firmer gas market conditions, higher contract volumes, better optimization opportunities, and stronger July trading.

Growth themes: AI and data center demand, especially in Singapore, the U.K., Australia, Vietnam and Indonesia, was framed as a major medium-term opportunity across power, renewables and integrated energy platforms.