Sembcorp Industries' (Sembcorp) net profit in 1H2025 was $491 million, marginally higher than 1H2024's net profit of $489 million. However, net profit after exceptional items (EI) and FX impact was $536 million, 1% lower than $543 million in 1H2024. Net profit before EI for the Gas and Related Services segment was $330 million, marginally lower than the $339 million achieved in 1H2024.
Earnings were steady as lower generation spreads in Singapore and the absence of contribution from Phu My 3 in Vietnam were offset by contribution from Senoko Energy. Net profit before EI for the Renewables segment increased 27% to $132 million in 1H2025, due to higher contribution from India on better wind resource and higher operational renewables capacity. Sembcorp's gross installed renewables capacity increased to 13.8GW in 1H2025 from 10.0GW in 1H2024. However, performance was impacted by higher curtailment and lower tariffs in China. The Integrated Urban Solutions segment delivered a stable net profit before EI of $74 million, a slight increase from $73 million in 1H2024, supported by higher land sales in Indonesia as well as improved earnings from the water business in China. Decarbonisation solutions made a larger loss of $13 million versus $10 million a year ago.
Since Liberation Day the SGD has become a haven currency. Hence, the stronger SGD against currencies of Sembcorp's operational geographies had an estimated impact of $23 million with a deferred payment note FX loss of $95 million charged to the P&L. On the flip side, interest rates in most of Sembcorp's geographies have eased while Sora fell sharply in 1H2025. While Sembcorp still has more debt than equity, the cost of debt has stabilised and eased maringally to 4.5% as at June 30 compared with 4.6% a year ago. Cost of debt should ease given the easier interest rate environment in China and India.
Sembcorp closed at $7.80 on Aug 7, up 41% year-to-date
