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Analysts positive on Sembcorp's long-term PPA with the state of Andhra Pradesh

Felicia Tan
Felicia Tan1/14/2022 12:19 AM GMT+08  • 2 min read
Analysts positive on Sembcorp's long-term PPA with the state of Andhra Pradesh
CGS-CIMB and Citi have kept their TPs at $2.51 and $2.52 respectively.
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Analysts from CGS-CIMB Research and Citi Research are keeping “add” and “buy” on Sembcorp Industries after the company announced, on Jan 4, that it had inked a 12-year long-term power purchase agreement (PPA) with Andhra Pradesh’s state DISCOM for its Plant 2.

The PPA was entered into by Sembcorp’s subsidiary, SEIL.

No tariff was disclosed but CGS-CIMB analyst Lim Siew Khee believes that it should be close to market rate; IEX spot prices in November to December 2021 averaged 3.33 rupees/kWh.

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