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

On August 13, Sembcorp announced an increased interim dividend of 11 cents per share for the first half of 2026, reflecting the company's confidence in its future performance. This marks a 22% increase from the nine cents per share paid a year ago. In its filing with the Singapore Exchange, Sembcorp attributed the higher dividend to its expectations of better financial results for the second half of 2026.

The company also expressed optimism about the financial performance of its Australian energy supplier, Alinta Energy, which it acquired in June. Despite a 25% fall in underlying net profit to $369 million for the first half of 2026, compared to $491 million the previous year, Sembcorp anticipates a stronger second-half performance.

This projection is bolstered by the resilience of its diversified portfolio, the positive impact of Alinta Energy's contributions, and improved earnings prospects for its Singapore business. The company's CEO, Wong Kim Yin, highlighted Alinta's better-than-expected performance in the first half of 2026. Looking ahead, Sembcorp expects stronger earnings for its gas and related services segment, driven by the commissioning of a 600 megawatt hydrogen-ready power plant.

The integrated urban solutions segment is also projected to perform better in the second half, with higher land sales expected to bring in recurring income. Meanwhile, the renewables segment is anticipated to deliver lower earnings due to seasonal and tariff-related challenges, partially offset by new operational capacity in India.

Overall, Sembcorp remains optimistic about its second-half underlying net profit, expecting it to surpass the first half of 2026.