The surge in group net profit was a result of higher power costs in 2022. SCI is an important supplier of power in Singapore. This is reported under its conventional energy segment which posted net profit before exceptional items of $766 million in FY2022, up from $373 million in FY2021. The doubling of net profit was due to higher energy demand and better margins in Singapore and the UK.
A major beneficiary of higher energy prices was Sembcorp Industries (SCI) (SGX:U96
) , one of the better-performing component stocks of the Straits Times Index last year. The power-producing group announced a net profit of $883 million for FY2022 ended Dec 31, 2022 before exceptional items, up 87% y-o-y, and a net profit of $848 million, up 204% y-o-y after exceptional items. The exceptional item was an $8 million write-off for an investment in Vietnam because of expenses. The $848 million figure was above the average of $819 million analysts were expecting.
SCI’s earnings come from a renewable energy portfolio driven by acquisitions, conventional energy, and integrated urban solutions which include industrial parks.
