Surging energy prices have powered Sembcorp to mark a net profit before exceptional items of $490 million, up 94% from 1HFY2021. Its conventional energy segment turned a profit of $397 million, up 115% for the same period from a loss-making first half last year, as higher electricity prices in Singapore and India were assisted by realised gains from favourable gas hedges the company entered in 2021.
Analysts from UOB Kay Hian, DBS Group Research, OCBC Investment Research and CGS-CIMB Research have reiterated their “buy” calls for Sembcorp Industries and raised their target prices (TP) to $4.10, $3.80, $3.60 and $3.80 from $3.59, $3.70, $2.90 and $3.66 respectively, while Maybank Securities raised its TP from $3.40 to $4.50 after initiating coverage for the stock with a “buy” call on Aug 2.
On Aug 5, Sembcorp, the Straits Times Index’s (STI) top performer this year, announced its impressive set of 1HFY2022 results, recording a turnover of $4.8 billion, up 45% from $3.3 billion in 1HFY2021.
