However, Sembcorp Power, the group’s utilities arm, reported an annual net profit of $3.4-4.4 million between 2014 and 2016, which she deems marginal compared to SCI’s total net profit over recent years.
SINGAPORE (Mar 22): OCBC Research is maintaining its “buy” call on Sembcorp Industries (SCI) with a fair value of $3.59 despite further liberalisation of Singapore’s retail electricity market which brings higher competition along with it.
In a Thursday report, lead analyst Low Pei Han says that while there is a possibility of “irrational competition” in the initial phase of energy market liberalisation, as well as pressure on SCI’s margins due to the resultant need for promotional spending, the Singapore retail electricity business is but a segment of the group’s diverse portfolio.
