Sembcorp falls over 5% to hit two-month low
The energy and urban solutions provider posts a 72% year-on-year decline in H1 net profit to S$150 million
Energy and urban solutions firm Sembcorp Industries saw its shares tumble by more than 5 percent on Monday, October 26, marking the lowest trading level since August. Trading at S$5.71 in early morning hours, the stock dropped S$0.30 or 5 percent from its previous closing price, according to ShareInvestor. Just 2.3 million shares had been exchanged so far.
The stock had previously closed at S$6.01 on October 23, increasing by just S$0.01 or 0.2 percent with approximately 2.2 million shares changing hands. The significant decline occurred following remarks by Singapore's Energy, Trade and Industry Minister Tan See Leng, who warned of an increased likelihood of energy supply disruptions.
This warning came as Indonesia started reducing natural gas exports to Singapore on October 24. Sembcorp, an importer of natural piped gas from Indonesia, reported a staggering 72 percent year-on-year decline in net profit to S$150 million for the first half ended June 2026. The reduction was primarily driven by one-off costs linked to the acquisition of Australian energy provider Alinta Energy and weaker performances from the company's main operations.
Despite this, the group raised its interim dividend to S$0.11 per share from S$0.09 in the previous year. While Sembcorp anticipates a stronger showing in the second half of 2026, thanks to full six-month contributions from Alinta, increased land sales, and enhanced earnings from its gas business, the company cautioned that its renewables business will continue to face challenges due to weaker wind and solar resources and lower tariffs in China.
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