Sembcorp’s profit up 7% in FY 2024

This was despite a planned major maintenance in the first half.

Sembcorp Industries (Sembcorp) has reported a net income of $1.01b in fiscal year 2024 (FY 2024), increasing 7% from the previous year.

According to a bourse filing, the increase in profit was baked by a slight increase in net profit before exceptional items (EI) to $1.019b from $1.018b despite a planned major maintenance in the first half of last year.

In the second half alone, Sembcorp’s net profit jumped 14% to $471m.

A major contributor to its total profit is the gas and related services segment which logged a net profit before EI of $727m, down 10% from last year.

“As of end-2024, 98% of the company’s gas-fired power portfolio was underpinned by offtake contracts, with more than 60% of capacity locked in for over five years,” Sembcorp said.

The company has also completed its acquisition of a 30% interest in Senoko Energy in November 2024. The 600-megawatt hydrogen-ready power plant is expected to contribute to earnings upon completion in 2026.

Another major component of Sembcorp’s profit is the renewables segment, contributing $183m which was down 9% from last year due to the impact of curtailment in China during the year, and lower wind speeds in India in the second half of 2024.

Since the end of  2023, Sembcorp said it has secured 4.1 gigawatts of renewables capacity across key markets, bringing its total clean power capacity to 17.0 GW, including 13.1 GW of installed capacity.

The integrated urban solutions segment also recorded a net profit before EI of $169m, jumping 40% from a year ago. This was thanks to higher land sales in Vietnam and Indonesia.

“Sembcorp is well-positioned to capture the once-in-a-generation growth opportunities in energy transition, AI transformation, and industrial realignment,” the company said, adding that the gas and related services, renewables, and integrated urban solutions segments are expected to drive Sembcorp’s strategic plan towards 2028 and beyond.