Sembcorp Industries (U96) H1 2025 earnings summary

Executive summary

• Turnover for 1H2025 was S$2,942 million (US$2.9B), down 8% year-over-year, mainly due to lower gas prices and the absence of SembEnviro contribution, partially offset by renewables growth and higher gas sales in Singapore.

• Net profit for 1H2025 was S$536 million, nearly flat year-over-year, including S$140 million exceptional gain from SembEnviro disposal and S$95 million non-cash DPN forex loss.

• Adjusted EBITDA was S$1,045 million (US$1B), stable year-over-year; underlying group net profit before exceptional items and DPN FX was S$491 million.

• Interim dividend increased by 50% to 9.0 cents (US$0.09) per share, payable August 26, 2025.

• 88% of group net profit derived from investment-grade markets, with Singapore contributing half.

Financial highlights

• EBITDA fell 6% year-over-year to S$834 million; adjusted EBITDA was stable at S$1,045 million.

• Free cash flow rose to S$1,313 million, driven by improved working capital and divestment proceeds.

• Net debt reduced by over S$400 million to just under S$7.4B; net debt/adjusted EBITDA improved from 3.8x to 3.6x.

• Weighted average cost of debt decreased to 4.5%; liquidity remains strong at S$3.5B.

• EPS before exceptional items and DPN FX was 27.6 cents; annualized group ROE at 17.8%.

Outlook and guidance

• Gas and Related Services earnings expected to remain resilient in 2H2025 despite lower spreads and UK demand risks.

• Renewables earnings anticipated to be lower in 2H2025 due to seasonality, curtailment, and lower tariffs in China, partially offset by new projects.

• Integrated Urban Solutions expected to remain stable, with watchfulness on land sales amid trade tariffs and macroeconomic shifts.

• Dividend payout expected to be sustainable and commensurate with underlying earnings.

• Focus remains on strengthening and growing businesses to drive strategic plan towards 2028 and beyond.