Billion Dollar Club: INDUSTRIALS

Sembcorp Industries, a leading utilities player in Singapore, has chalked out steady growth to emerge as the company that gave the most returns to shareholders over the three-year review period. In addition, the company is named the overall sector winner and also Company of the Year at this year’s Billion Dollar Club (BDC). In its most recent FY2024, Sembcorp’s net profit before exceptional items crossed $1 billion for the second consecutive year, despite a planned major maintenance in the gas and related services segment in 1HFY2024. 

To reward shareholders, Sembcorp paid a total dividend of 23 cents for FY2024, an increase of 77% from FY2023. 

As described by the company, this higher payout is supported by its growing portfolio, which is underpinned by long-term offtake contracts, providing enhanced cash flow visibility. In 2024, the company expanded its asset base through the acquisition of a 30% stake in Senoko Energy, one of Singapore’s largest electricity suppliers, to capitalise on new growth opportunities. In addition, Sembcorp has been actively expanding its renewable energy portfolio. In 2024, its gross installed capacity reached 13.1GW, with an eye on the 25GW target by 2028.

See also: A rejuvenated Singapore market, a reset for The Edge Singapore

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With its FY2024 return on equity (ROE) of 26.3%, an improvement of 10% from FY2023’s 23.8%, Singapore Technologies Engineering has been named the winner in the weighted ROE category. The company describes itself as a global technology, defence and engineering group, with a diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. With a headcount of more than 27,000 across its global network of subsidiaries and associates, ST Engineering serves more than 100 customers across various markets.

In FY2024, the company reported record earnings of $702 million, an increase of 20%. Its three main business segments — commercial aerospace, defence and public security and urban solutions and satcom — all contributed to the stronger showing. “This strong set of results was achieved against a backdrop of geopolitical tension and a dynamic market landscape. This could be attributed to the breadth of our customer base and revenue streams across geographies, underscoring our global footprint and balanced portfolio,” states the company in its FY2024 annual report.

Yangzijiang Shipbuilding (Holdings) rounded up the list of winners within this industry sector. The China-based but Singapore-listed shipbuilder is enjoying strong order momentum. In the three years taken into consideration for this year’s BDC, the company’s earnings jumped from $2.81 billion in FY2022 to $4.1 billion the following year and to reach a record of $6.63 billion in FY2024. This impressive showing helped Yangzijiang Shipbuilding take home the fastest growth in profit after tax (PAT) for this industry sector. Growth is set to continue. In FY2024, the company won an “unprecedented” US$14.6 billion ($18.9 billion) in new orders, driven mainly by strong demand for dual-fuel containerships, oil tankers and gas carriers. “Our shipyards operated at full capacity, setting new benchmarks in operational excellence and reinforcing our position as one of the world’s leading shipbuilders,” says executive chairman Ren Letian.