The Singapore-based Sembcorp Industries (Sembcorp) delivered a resilient performance for the full year of 2024 (FY2024). Group net profit before exceptional items (EI) and discontinued operation were S$1.02 billion, comparable to FY2023, despite a planned major maintenance in the first half of 2024 (1H2024).
Group net profit after EI and discontinued operation was S$1.01 billion, 7% higher than S$942 million in FY2023. Net profit before EI and discontinued operation for 2H2024 was S$487 million, 17% higher than 2H2023 mainly due to higher earnings in the Gas and Related Services and Integrated Urban Solutions segments.
Sembcorp’s FY2024 net profit before EI for the Gas and Related Services segment was resilient at S$727 million, despite planned major maintenance of the cogeneration plant in Singapore and a 34% decline in Singapore wholesale electricity prices during the year.
The company said, “We continued to secure long-term contracts for our Singapore portfolio, enhancing certainty and growing our earnings visibility. As of the end of 2024, 98% of the Group’s gas-fired power portfolio was underpinned by offtake contracts, with more than 60% of capacity locked in for over five years.”
The company added, “Through a proactive contracting strategy, the Gas and Related Services segment is now an anchor of the Group’s earnings. In November 2024, we successfully completed the acquisition of a 30% interest in Senoko Energy, further bolstering the segment’s performance. The 600MW hydrogen-ready power plant will also contribute to earnings upon completion in 2026.”
Sembcorp said, “Since the end of 2023, we have secured 4.1GW of renewables capacity across key markets, bringing the Group’s renewables capacity to 17.0GW, including 13.1GW of installed capacity. Net profit before EI for the Renewables segment was S$183 million in FY2024. The Renewables segment was impacted by curtailment in China during the year, and lower wind speeds in India in the second half of 2024.”
It further added, “The Integrated Urban Solutions segment posted a strong net profit before EI of S$169 million, following a turnaround in performance from the Urban business. Higher land sales were achieved in Vietnam and Indonesia. The Urban business has built up a gross land bank of 14,400 ha for low-carbon industrial parks, and over 508,000 sqm of industrial leasable space from ready-built warehouses and factories.”
Given the Group’s strong performance, the Board of Directors proposes a final dividend of 17.0 cents, subject to shareholders’ approval. Together with the interim dividend of 6.0 cents per ordinary share paid in August 2024, the total dividend for FY24 will be 23.0 cents per ordinary share, representing a dividend yield of 3.9%1 and a higher dividend payout ratio of 40%, compared to 23% in FY2023.
Wong Kim Yin, Group CEO of Sembcorp Industries, “Sembcorp delivered a strong financial performance in 2024, underpinned by resilient earnings and robust cash flow. This year’s dividend increase reflects our- confidence in the company’s future performance and ability to generate sustainable returns. We remain committed to strengthening our growth engines, driving long-term expansion while delivering increasing value to our shareholders.”
On Company’s Performance
Y2024 exceptional items (EI) totaling S$1 million comprised a net gain of S$3 million on disposal of assets and S$8 million gain on bargain purchase on the acquisition of two special purpose vehicles of Leap Green Energy in India, partially offset by impairments of S$6 million for project expenses incurred in Singapore and Vietnam, and S$4 million change in fair value of contingent consideration for a past acquisition in India upon collection of certain receivables.
FY2023 exceptional items (EI) totaling S$2 million comprised divestment gains of S$5 million from the sale of its water businesses in Indonesia, a S$1 million recognition of negative goodwill arising from the acquisition of a 49% joint venture in the solar business in Vietnam offset by a S$4 million restructuring expense incurred for China operations.
FY2024 net loss from discontinued operation related to loss on disposal of Chongqing Songzao Sembcorp Electric Power. FY2023 net loss from discontinued operation referred to the loss on disposal of Sembcorp Energy India Limited.
