Latest news with #Sembcorp
Business Times
2 days ago
- Business
- Business Times
Singapore stocks fall amid cautious market sentiment; STI down 0.2%
[SINGAPORE] Local shares closed lower on the first trading day of the week, tracking a mixed performance across Asian markets, as investors braced for geopolitical developments and key corporate earnings in the days ahead. The blue-chip Straits Times Index (STI) finished 0.2 per cent or 7.05 points down at 4,232.78 on Monday (Aug 11). Across the broader market, gainers outnumbered losers 279 to 254, with about 1.3 billion securities worth S$1.4 billion changing hands. On the STI, technology solutions provider Venture Corp led the gains, rising 1.1 per cent or S$0.15 to S$13.25. Sembcorp was at the bottom of the list, down 3.4 per cent or S$0.23 at S$6.49. Earlier on Monday, Maybank downgraded the stock to 'hold' and cut its target price to S$6.40 from S$7.10, following last week's earnings decline . The trio of local banks ended the day mixed, with DBS ending flat at S$50.75. OCBC rose 0.5 per cent or S$0.09 to S$16.88, and UOB gained 0.1 per cent or S$0.05 to close at S$35.75. Major indices across the region were varied. The Kospi slipped 0.1 per cent, while the Nikkei 225 advanced 1.9 per cent. The KLCI rose 0.4 per cent and the Hang Seng added 0.2 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This came at the start of a 'high-stakes' week with a preliminary trade truce between the US and China set to expire, and other countries pushing to secure agreements with the American administration, said Christian Gattiker, head of research at Julius Baer. He noted that a global macro pulse will emerge from a raft of inflation, production and spending data. US headline and core consumer price indices, due to be released on Tuesday, are expected to remain above the Federal Reserve's 2 per cent target, amid signs that import tariffs may be feeding into prices. China will also release its second-quarter activity data on Friday, including retail sales, industrial production and fixed investment. These reports, along with Q2 gross domestic product figures from several Asian economies, are likely to shape expectations for the region's growth trajectory. 'With central bank decisions, political headlines and key earnings also in play, markets may not enjoy a typical August breather,' added Gattiker.
Business Times
5 days ago
- Business
- Business Times
Sembcorp declares ‘shopping season' with strong Singdollar, even as earnings take a hit
[SINGAPORE] Sembcorp Industries wants to take advantage of the stronger Singapore dollar to go 'shopping' for deals, even as the company's shares tumbled on Friday amid muted earnings and the threat of US tariffs. For the half-year ended Jun 30, Sembcorp posted a 1 per cent fall in net profit to S$536 million, amid lower turnover from its gas business. Sembcorp's share price fell by as much as 15.6 per cent to hit a low of S$6.58 on Friday. It eventually ended the day at S$6.72, down 13.9 per cent. At an earnings briefing on Friday, Sembcorp's chief financial officer Eugene Cheng flagged that the stronger Singapore dollar resulted in a S$23 million forex translation impact on earnings, which cannot be hedged against. Chief executive Wong Kim Yin further noted that the US tariffs – which kicked in on Friday – have created uncertainty and 'somewhat tempered customers' expansion plans'. 'For example, we are observing a more cautious stance from several multinational manufacturers in our industrial parks,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up That said, Cheng highlighted that Sembcorp has S$3.5 billion in 'on-demand liquidity that we can readily draw on to deploy for growth'. The sum comprises S$879 million in cash and S$2.6 billion in unutilised committed facilities as at end-June. Said Wong: 'With a strong balance sheet, strong cash flow and strong Singdollar, this is shopping season. I can't tell you a lot about what is being cooked, but there are opportunities out there, and we are very well-positioned to capture some of those.' The company also expects to maintain a 'sustainable' dividend payout despite the macro challenges. It declared an interim dividend of S$0.09 per share, up from S$0.06 per share in the year-ago period. Gas down, renewables up Sembcorp's flat H1 earnings came on the back of an 8 per cent fall in revenue to S$2.9 billion. The company saw lower generation spreads in Singapore, as well as the absence of contributions from the Phu My 3 power plant in Vietnam, which it transferred to the government. Turnover in the gas segment – Sembcorp's largest revenue driver – fell by 11.1 per cent to S$2.1 billion. Earnings stood at S$330 million, down from S$339 million a year earlier. The weakness in the gas business was partly offset by a 22.1 per cent rise in earnings from renewables, to S$138 million. This was driven by higher contributions from India, which had better wind resources. Sembcorp's gross installed renewables capacity rose to 13.8 gigawatts (GW) in H1, from 10 GW the year before. That said, the group's China renewable business was hit by lower tariffs and higher curtailment, where the amount of electricity generated had to be restricted. This is because China's rapid renewables expansion has outpaced demand growth, said Wong. Asked about the risk of asset impairment in China, he added that most of Sembcorp's assets are in provinces with better demand-supply dynamics, although 'one or two' are in the north-west region. Sembcorp is watching the situation 'very closely', Wong said, adding: 'To the extent it is prudent and necessary, we will be making the relevant adjustments and keep you informed.' Separately, the company's earnings in the integrated urban-solutions division rose 9.6 per cent to S$80 million. Growth was supported by higher land sales in Indonesia and improved earnings from the water business in China. Outlook Looking ahead, Sembcorp expects its H2 earnings from the gas business to remain 'resilient', despite lower spreads for contracts renewed since the second half of 2024. There could also be lower customer demand in the UK, with the closure of an ethylene cracker facility in Wilton, said Wong. Nevertheless he described Sembcorp's move to raise its stake in Senoko Energy as a positive for the gas business, while also complementing Sembcorp's renewable import projects. This is because Senoko's portfolio of power plants can mitigate the intermittency of imported green power, such as solar energy. 'However reliable, there will still be interruptions from time to time. We can cover the interruption with our own fleets of power plants; we don't need to go out there and beg for someone else to provide insurance or emergency cover for us,' said Wong. That said, the outlook for the renewables business is muted. Earnings in H2 are expected to be lower due to seasonality, as well as higher curtailment and lower tariffs in China, compared with last year. That said, Wong is optimistic that the broader transition towards renewable energy is 'still alive' – with countries requiring both baseload power and renewables. 'Renewables will not disappear,' he said, adding that it is a means of achieving energy independence without having to import power. The costs of renewables, including energy storage costs, are also declining rapidly. 'Even if you don't believe in green, it's still good to do. It will have its place in the energy mix,' he said. Sembcorp's interim dividend will be paid on Aug 26.
Business Times
5 days ago
- Business
- Business Times
STI, semiconductor stocks fall, as Genting, Sembcorp, SGX decline
[SINGAPORE] Shares of some Straits Times Index (STI) constituents and semiconductor firms fell on Friday (Aug 8), on the impact of earnings reports as well as the US-imposed tariffs kicking in. Sembcorp suffered the steepest decline of close to 14 per cent on Friday morning, down to S$6.65 as at 9.04 am from its open price of S$7.05. The group before the market opened had reported earnings that fell 1 per cent to S$536 million for the first half ended Jun 30, on the back of lower turnover from its gas business. The counter closed 13.9 per cent or S$1.08 lower at S$6.72 at the end of Friday. Genting Singapore was down as much as nearly 4 per cent, but subsequently declined 3.31 per cent to S$0.73 at 9.29 am. It fell to an intra-day low of S$0.725 at 10.01 am. The company had reported on Thursday after market close a H1 profit that fell 34 per cent to S$234.7 million, on weaker gaming and room revenue. It closed on Friday at S$0.745, down S$0.010 or 1.3 per cent. The shares of national carrier Singapore Airlines (SIA) fell by more than 4 per cent to S$6.52 at 9.06 am, while OCBC fell 2.46 per cent to S$16.67. Both companies went ex-dividend on Friday. Shares of SIA closed the day at S$6.53, down 4.4 per cent or S$0.30, while the local bank's shares ended 1.8 per cent or S$0.30 lower at S$16.79. SGX rose to S$16.58 at 9.05 am, but declined to S$16.26 by 10.37 am and closed 2 per cent or S$0.32 down at S$16.02. The Singapore bourse posted a 2.6 per cent decline in H2 net profit on Friday, although it reported its highest-ever full-year revenue and net profit since listing. The STI was down 0.61 per cent on Friday morning, and ended the day 0.4 per cent or 18.32 points lower at 4,239.83. Losers outnumbered gainers 344 to 190, after 1.3 billion securities valued at around S$2 billion changed hands. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The counters of a slew of semiconductor companies in Singapore also fell following US President Donald Trump's announcement on Thursday that he would slap a 100 per cent tax on imports of semiconductors produced outside the US. Overall higher US tariffs came into effect on Thursday, with duties at a baseline rate of 10 per cent for many countries, and between 15 and 41 per cent for others. UMS declined by more than 5 per cent, but pared those losses to stand at about 2 per cent down at S$1.49. The counter closed Friday 2.6 per cent lower at S$1.48. Frencken earlier also tumbled by over 5 per cent, but ended Friday 2.4 per cent to S$1.63. AEM lost as much as 4.5 per cent, and closed the day 3.2 per cent lower at S$1.52. Analysts had earlier predicted that Trump's announcement might affect semiconductor-related companies in Singapore and Malaysia. CGS International (CGSI) said in a Friday report that Frencken would be indirectly exposed through Dutch semiconductor giant ASML and US company Applied Materials, which supply equipment to the semiconductor industry. AEM is more directly affected because it ships to Intel – and Intel's main test and assembly is outside the US, CGSI noted. But it added that Intel might have room to negotiate as it has invested in the US. CGSI said: 'Eventually, the worst-case scenario over time is likely some demand destruction as customers, suppliers and consumers in the US all bear part of the higher tariff, so further tech innovation demand (resulting in new exciting tech products) is needed.' It added: 'The outlook for tech in H2 2025 remains muted as tariffs continue to render cautious and slow decision-making.' The Straits Times reported that the proposed tariff would weigh heavily on companies in Singapore that package semiconductors, and potentially those producing components and intermediate products that are part of the chip-supply chain. The semiconductor industry accounts for nearly 6 per cent of Singapore's gross domestic product, based on the Economic Development Board's 2025 data. Tech stocks in Malaysia already fell on Thursday when the news broke. It triggered declines in 71 technology counters on Bursa Malaysia. Last year, Malaysia exported nearly RM120 billion (S$36.4 billion) in electrical and electronics products to the US, accounting for a fifth of its total electrical and electronics exports. Semiconductor exports alone amounted to RM60.6 billion or about 20 per cent of Malaysia's total chip shipments.
Straits Times
5 days ago
- Business
- Straits Times
Sembcorp first-half profit dips 1%; shares tumble 12%
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE – Sembcorp Industries posted net profit of $536 million for the half year ended June 30, down 1 per cent from the same period a year ago, on lower gas sales. The company also announced an interim dividend of 9 cents, to be paid out on Aug 26 – up from 6 cents a year ago. Revenue for the half-year dropped 8 per cent to $2.9 billion from $3.2 billion a year ago. Sembcorp shares dropped 12.3 per cent, or 96 cents, to $6.84 as at 9.33am. Its earnings decline was mainly due to the lower contribution from gas and related services on lower pool prices in Singapore, and the absence of contribution from Sembcorp Environment, a waste management subsidiary which has been sold. However, this was partially offset by higher gas sales in Singapore, as well as new capacity additions and acquisitions in the renewables segment. Its first half earnings were also weighed down by foreign exchange losses on a 'deferred payment note' for Sembcorp's sale of its coal business in India to an Omani consortium. The deal is denominated in the Indian rupee, which has seen its value slip relative to the Singapore dollar. Top stories Swipe. Select. Stay informed. Business Who loses the most from Trump's tariffs? Who wins? Business SGX posts highest full-year earnings since listing, quarterly dividend of 10.5 cents a share Asia Cambodia, Thailand agree on Asean observers monitoring truce, but fundamental differences remain Singapore Flying greener will come at a price, industry players warn Opinion At 79, Liew Mun Leong has no time to be sentimental Singapore Student found with vape taken to hospital after behaving aggressively in school; HSA investigating Singapore Chikungunya cases in Singapore double; authorities monitoring situation closely Singapore CDC and SG60 vouchers listed on e-commerce platforms will be taken down: CDCs Exceptional items on the book for the first half of 2025 totalled $140 million, comprising $142 million profit from the sale of the waste management subsidiaries in Singapore, offset by $2 million fair value loss related to a prior acquisition in India. Earnings per share came in at 27.6 cents, up from 27.4 cents for the first half of 2024, after factoring in exceptional items and the forex loss. The energy and urban solutions provider chalked up the decline in gas and related service earnings to lower generation spreads in Singapore and the absence of contribution from Phu My 3 in Vietnam, which was offset by contribution from Senoko Energy. Phu My 3 is a power plant in Vietnam that was transferred to state provider Vietnam Electricity on March 1, 2024. Meanwhile, the earnings growth in renewables was due to higher contribution from India on better wind resource and higher operational renewables capacity, said Sembcorp. This offset the drop in business from China, which saw lower tariffs and higher curtailment, where the amount of electricity generated has to be restricted. Sembcorp's integrated urban solutions segment posted a stable net profit before exceptional items of $74 million, a slight increase from $73 million a year ago, supported by higher land sales in Indonesia as well as improved earnings from the water business in China. Sembcorp group chief executive Wong Kim Yin said the company delivered resilient results for the half-year, despite macroeconomic uncertainties. 'The defensiveness of our portfolio will continue to underpin the resilience of our earnings. 'We remain focused on strengthening and growing our businesses to drive Sembcorp's strategic plan towards 2028 and beyond, to deliver increasing value to our shareholders.'
Business Times
5 days ago
- Business
- Business Times
STI stocks fall, as SIA, Genting, OCBC tumble
[SINGAPORE] Shares of several Straits Times Index (STI) constituents fell in early trade on Friday (Aug 8), on the impact of earnings and amid tariffs kicking in. Sembcorp suffered the steepest decline, as it dived more than 13 per cent. It was last down 13.1 per cent at S$6.78. On Friday, before the market opened, it reported earnings that fell 1 per cent to S$536 million for the first half ended Jun 30, on the back of lower turnover from its gas business. Singapore Airlines tumbled more than 4 per cent to trade at S$6.55, while OCBC fell 2.3 per cent to S$16.69. Genting Singapore was down nearly 4 per cent to S$0.725. On Thursday, after market close, it reported H1 profit that fell 34 per cent to S$234.7 million on weaker gaming and room revenue. Higher US tariffs came into effect on Thursday, with duties at a baseline rate of 10 per cent for many countries and between 15 and 41 per cent for some. The counters of a slew of semiconductor companies in Singapore also fell as US President Donald Trump announced on Thursday that he would slap a 100 per cent tax on imports that include semiconductors. UMS declined more than 5 per cent to S$1.44, while Frencken tumbled more than 5 per cent to S$1.59. AEM lost 4.5 per cent to trade at S$1.50.
