Sembcorp second-half profit drops 5% on weaker gas earnings

SINGAPORE - Sembcorp Industries posted marginal drops in second-half and full-year profit as strong performance from its renewables and urban solutions divisions was offset by lower earnings from its gas and related services segment.

For the six months to December, net profit fell 5 per cent to $448 million from $473 million in the year-ago period.

Revenue for the second half shrank 11 per cent to $2.9 billion from $3.2 billion a year earlier.

This was mainly attributed to the lower contributions from the gas and related services segment on lower off-take of electricity, lower pool prices and lower gas prices in Singapore, as well as a major outage at its Wilton 10 power station in Britain.

Sembcorp proposed a final dividend of 16 cents per share, compared with 17 cents in 2025.

For the full year, net profit dipped 3 per cent to $984 million from $1 billion after a 10 per cent drop in revenue to $5.8 billion.

Sembcorp said underlying earnings from its gas and related services segment, its top earner, declined 4 per cent to $701 million, weighed down by the lower contribution from its British operations and weaker generation spreads in Singapore.

But its renewables segment saw underlying before exceptional items rise 5 per cent on the back of its India portfolio. Its integrated urban solutions division, which develops industrial parks, business and residential spaces, posted 3 per cent growth.

Sembcorp shares fell on Feb 25 after its results announcement. The stock was down 15 cents or 2.4 per cent to $6.15 at 9.36am.