Sembcorp Industries Ltd Q2 2026 Earnings Recap

Shares declined 1.2% following Sembcorp’s first half 2026 report as weaker renewables earnings and lower spark spreads in the gas segment weighed on investor sentiment despite stable contracted cash flows and the recent Alinta acquisition.

Key Takeaways

• Underlying net profit was SGD 369 million, with pro forma including Alinta at SGD 558 million; EPS stood at SGD 0.207 (0.314 pro forma).
• Gas and Related Services net profit declined to SGD 285 million, pressured by lower spark spreads and the loss of a U.K. industrial customer, partially offset by strong contracted portfolio (80% contracted for 5+ years).
• Renewables segment underperformed with net profit of SGD 69 million due to weak wind and solar generation in China, tariff reductions, and removal of VAT refunds.
• Integrated Urban Solutions delivered SGD 62 million in net profit, impacted by divestment of SembEnviro but supported by growth in industrial land and water businesses.
• Alinta acquisition completed in June; first-half contribution showed strong underlying net profit doubling to SGD 231 million, driven by low-cost generation and long-term gas contracts.