SINGAPORE – Sembcorp Industries reported underlying net profit of S$369 million for the six months ended 30 June 2026, down 25 per cent year-on-year, as softer contributions from its UK power operations and renewables portfolio in China offset steady domestic earnings.
Turnover rose 28 per cent year-on-year to S$3.77 billion. The board declared an interim dividend of 11.0 Singapore cents a share—up from 9.0 cents a year earlier—payable on 4 September 2026.
Segment-wise, Gas and Related Services generated S$285 million in underlying net profit, 14 per cent lower YoY, as the exit of a UK customer and slimmer generation spreads in Singapore eroded margins. Renewables fell 48 per cent to S$69 million, weighed by electricity curtailment, the lapse of VAT refunds and a shift to market-based tariffs in China. Integrated Urban Solutions earned S$62 million, 16 per cent below last year, reflecting the absence of SembEnviro’s contribution following its disposal in 1H2025. Losses at Decarbonisation Solutions narrowed to S$8 million, while Other Businesses added S$19 million.
The decline in earnings was partly offset by Sembcorp’s long-term contracted generation in Singapore, where about 80 per cent of capacity is secured for at least five years. Nonetheless, reported net profit, which factors in one-off transaction costs of S$155 million linked to the June completion of the Alinta acquisition, slid 72 per cent to S$150 million.
The A$960 million purchase of Australian energy retailer‐generator Alinta marked the group’s largest overseas deal and is expected to broaden its earnings base. On a pro-forma basis—assuming Alinta had been consolidated from 1 January—underlying net profit would have been S$558 million, and Alinta would have contributed S$209 million.
Group chief executive officer Wong Kim Yin said the newly acquired business outperformed initial expectations in the first half. He added that the diversified portfolio, coupled with improving Singapore margins and a pick-up in land sales from the Urban segment, positions Sembcorp for a stronger second half. Wong also highlighted opportunities arising from rising power demand driven by data-centre and AI-related infrastructure, reiterating management’s commitment to “sustainable shareholder returns.”
Looking ahead, Sembcorp guides for higher underlying net profit in 2H2026 versus 1H2026. Management expects Alinta’s full-period contribution, firmer gas and power spreads in Singapore and increased monetisation of industrial land to bolster earnings, while acknowledging that renewables will continue to face seasonal variability and tariff adjustments in China.