Latest news with #SembcorpIndustries'
Business Times
26-05-2025
- Business
- Business Times
Sembcorp Industries enters agreement to explore exporting clean energy from Vietnam
[SINGAPORE] Energy company Sembcorp Industries' subsidiary, Sembcorp Utilities, has entered into an agreement with several of its counterparts in South-east Asia to explore exporting renewable energy from Vietnam into Malaysia and Singapore. Besides Sembcorp, the strategic partnership includes a Malaysian consortium established by the country's utility company Tenaga Nasional and its national oil company Petronas, as well as a Vietnamese technical services company for the energy sector, PetroVietnam Technical Services Corporation (PTSC), which is a member of PetroVietnam, the country's state-owned oil company. The consortia will focus on unlocking Vietnam's renewable energy resources, particularly offshore wind power, as a source for green electron generation and to supply clean electricity across borders, the four entities said in a joint statement on Monday (May 26). 'This alliance reflects the growing momentum towards a regionally integrated Asean power grid,' it read. The partners will also evaluate the feasibility of exporting renewable energy from Vietnam to Malaysia and Singapore via a new subsea cable, which will pass through the national grid of Peninsular Malaysia. There is also the possibility of adding more renewable energy generation and storage that is reliable and consistent in its supply. The statement said: 'To this end, the consortia will work closely with the relevant national authorities throughout the development process, seeking necessary approvals at various project phases, and paving the way for this significant regional power integration and energy interconnection.' A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up It added that the agreement, inked on the sidelines of the ongoing Asean summit in Kuala Lumpur during Malaysia's stint as Asean chair, marked 'a significant step forward in operationalising the tripartite collaboration and affirmed a shared commitment to advancing cross-border renewable energy trade'. 'This milestone reflects growing momentum in the realisation of the Asean power grid, reinforcing regional cooperation towards a more resilient, sustainable and interconnected energy future.' This partnership aims to open pathways for a scalable model of cross-border renewable energy cooperation in South-east Asia, which would position the region as a global leader in collaborative decarbonisation and energy transition. Wong Kim Yin, chief executive officer of Sembcorp Industries, said that this agreement highlights Singapore's strategic role as a demand centre and a key enabler of cross-border power imports to support its decarbonisation goals. 'We are committed to support Asean's low-carbon transition through shared infrastructure and strengthened partnerships,' he added. Tenaga's chief executive officer Megat Jalaluddin Megat Hassan and Petronas chief executive officer Tengku Muhammad Taufik – who are members of the Malaysian energy consortium – said in a joint statement that the country's participation in this initiative reflects its strong commitment to the vision of establishing an Asean power grid, which aims to strengthen regional energy security through the creation of a power transit hub. 'This tripartite partnership is a step forward in advancing transnational green infrastructure, tapping into Vietnam's renewable energy potential, and delivering stable, low-carbon electricity to communities and businesses,' they added. Vietnam's Prime Minister Phạm Minh Chính had previously highlighted offshore wind as a national priority. By participating in this trilateral collaboration, Vietnam aims to catalyse new economic opportunities, stimulate sustainable growth and generate quality employment, the statement said. Tran Ho Bac, chief executive officer of PTSC, said: 'This agreement highlights the role of PTSC in particular, and PVN as a whole, in advancing national energy transition strategies. We expect its effective implementation will mark a significant milestone – a starting point for renewable energy investment in Vietnam.'
Yahoo
24-04-2025
- Business
- Yahoo
Sembcorp Industries (SGX:U96) Has Announced That It Will Be Increasing Its Dividend To SGD0.17
The board of Sembcorp Industries Ltd (SGX:U96) has announced that it will be paying its dividend of SGD0.17 on the 13th of May, an increased payment from last year's comparable dividend. This takes the annual payment to 3.6% of the current stock price, which unfortunately is below what the industry is paying. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Even a low dividend yield can be attractive if it is sustained for years on end. Before making this announcement, Sembcorp Industries was earning enough to cover the dividend, but it wasn't generating any free cash flows. No cash flows could definitely make returning cash to shareholders difficult, or at least mean the balance sheet will come under pressure. The next year is set to see EPS grow by 23.0%. If the dividend continues on this path, the payout ratio could be 31% by next year, which we think can be pretty sustainable going forward. View our latest analysis for Sembcorp Industries The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of SGD0.10 in 2015 to the most recent total annual payment of SGD0.23. This implies that the company grew its distributions at a yearly rate of about 8.7% over that duration. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that Sembcorp Industries has been growing its earnings per share at 31% a year over the past five years. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. In summary, while it's always good to see the dividend being raised, we don't think Sembcorp Industries' payments are rock solid. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Just as an example, we've come across 2 warning signs for Sembcorp Industries you should be aware of, and 1 of them is a bit concerning. Is Sembcorp Industries not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Sembcorp Industries (SGX:U96) Is Paying Out A Larger Dividend Than Last Year
Sembcorp Industries Ltd (SGX:U96) has announced that it will be increasing its dividend from last year's comparable payment on the 13th of May to SGD0.17. Despite this raise, the dividend yield of 3.6% is only a modest boost to shareholder returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If it is predictable over a long period, even low dividend yields can be attractive. Based on the last payment, Sembcorp Industries' earnings were much higher than the dividend, but it wasn't converting those earnings into cash flow. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend. The next year is set to see EPS grow by 32.3%. Assuming the dividend continues along recent trends, we think the payout ratio could be 29% by next year, which is in a pretty sustainable range. Check out our latest analysis for Sembcorp Industries The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from SGD0.10 total annually to SGD0.23. This means that it has been growing its distributions at 8.7% per annum over that time. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Sembcorp Industries has seen EPS rising for the last five years, at 31% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that Sembcorp Industries could prove to be a strong dividend payer. In summary, while it's always good to see the dividend being raised, we don't think Sembcorp Industries' payments are rock solid. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We would probably look elsewhere for an income investment. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. To that end, Sembcorp Industries has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Here's What Analysts Are Forecasting For Sembcorp Industries Ltd (SGX:U96) After Its Yearly Results
Investors in Sembcorp Industries Ltd (SGX:U96) had a good week, as its shares rose 5.9% to close at S$6.09 following the release of its full-year results. Sembcorp Industries missed revenue estimates by 4.9%, coming in atS$6.4b, although statutory earnings per share (EPS) of S$0.56 beat expectations, coming in 3.3% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. View our latest analysis for Sembcorp Industries Taking into account the latest results, the consensus forecast from Sembcorp Industries' eleven analysts is for revenues of S$6.90b in 2025. This reflects a credible 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.1% to S$0.62. Before this earnings report, the analysts had been forecasting revenues of S$6.92b and earnings per share (EPS) of S$0.56 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates. There's been no major changes to the consensus price target of S$7.08, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sembcorp Industries analyst has a price target of S$8.00 per share, while the most pessimistic values it at S$6.20. This is a very narrow spread of estimates, implying either that Sembcorp Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So it's pretty clear that Sembcorp Industries is forecast to grow substantially faster than its industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sembcorp Industries' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at S$7.08, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Sembcorp Industries analysts - going out to 2027, and you can see them free on our platform here. Even so, be aware that Sembcorp Industries is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
