Home News Stocks To Watch

Sembcorp’s brown-to-green journey glows red-hot

Bryan Wu
Bryan Wu8/11/2022 04:05 PM GMT+08  • 9 min read
Sembcorp’s brown-to-green journey glows red-hot
Sembcorp will remain disciplined in acquiring renewable assets, says CEO Wong
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Sembcorp Industries, the best performer of the Straits Times Index (STI) so far this year, has reported earnings for 1HFY2022 ended June that blew past expectations. Going by analysts’ revised target prices of their already bullish calls, there is further upside for the stock.

For years after the oil market slumped, Sembcorp’s earnings were weighed down by the losses incurred by Sembcorp Marine, its then 61%-held subsidiary. The “demerger”, which was completed in September 2020, in a way removed the millstone so that Sembcorp could focus on growing its utilities business and increase investments in its renewable energy portfolio. Sembcorp Marine, on the other hand, has moved on to join forces with the offshore and marine unit of Keppel Corp in a deal that is pending.

When global energy prices began on a broad-based surge early this year, Sembcorp found itself in a favourable spot, capturing the upside from its mainly traditional conventional energy portfolio and to a smaller extent, its relatively new renewable energy assets.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.