Sembcorp lifts interim dividend to 11 cents on stronger second-half outlook

SINGAPORE - Sembcorp Industries announced on Aug 13 a higher interim dividend of 11 cents per share for the first half of 2026 – up from nine cents per share a year ago – as it expects stronger financial results for the second half.

This reflects confidence in the company’s future performance, it said in a Singapore Exchange filing before trading hours.

Sembcorp also expects more contributions from Australian energy supplier Alinta Energy, which it acquired in June.

This is even as the Singapore energy and urban solutions provider saw its underlying net profit fall 25 per cent to $369 million for the first half of 2026, compared with $491 million in the first half of 2025.

When taking in one-off acquisition costs, net profit fell by a larger margin of 72 per cent. Sembcorp had incurred a $155 million one-off transaction cost for the acquisition of Alinta.

Underlying net profit for Sembcorp’s three segments – gas and related services, renewables, and integrated urban solutions – also declined.

However, the company said if the Alinta acquisition had been completed in January instead of June 2026, net profit would have been $558 million, taking in six months of Alinta’s contributions.

Sembcorp group chief executive Wong Kim Yin said: “Alinta has performed better than expected in the first half of 2026.

“Looking ahead, we expect a stronger second-half performance, supported by the resilience of our diversified portfolio, contributions from Alinta and improved earnings prospects for our Singapore business.”

He added that as an integrated energy player, Sembcorp is well-positioned to capture structural demand growth from data centres and AI-related infrastructure.

“Our interim dividend of 11 cents per share, up 22 per cent from last year, reflects our confidence in the group’s future performance and our commitment to sustainable shareholder returns,” he said.

Sembcorp expects stronger earnings for the gas and related services segment in the second half.

This is supported by the commissioning of a 600-megawatt hydrogen-ready power plant, among other factors.

Sembcorp said in its results presentation: “The segment remains well-positioned to capture growing power demand in Singapore, particularly from data centre and high-tech manufacturing sectors.”

It added that Alinta is expected to strengthen the group’s earnings base and contribute to recurring cash flows over time.

Meanwhile, the integrated urban solutions segment is also projected to do better in the second half, driven by higher land sales.

“The business continues to make steady progress in developing 0.9 million sq m of ready-built factories, which are expected to contribute to recurring income upon completion,” Sembcorp said.

However, the renewables segment is expected to bring in lower earnings for the second half of 2026, driven by seasonal and tariff-related challenges.

Sembcorp said it expects lower resources and tariffs in China, partially offset by contribution from new operational capacity in India.

But overall, Sembcorp still expects its second-half underlying net profit to exceed that of the first half of 2026.

Sembcorp shares slid nearly 3 per cent to $5.56 at around 10am on Aug 13.