Sembcorp raises interim dividend despite 72% H1 profit slide to S$150 million on Alinta deal costs

[SINGAPORE] One-off acquisition costs pared Sembcorp Industries’ interim earnings, which tumbled 72 per cent to S$150 million from S$536 million a year ago.

The energy and urban solutions provider said in a statement on Thursday (Aug 13) it incurred S$155 million in transaction costs related to its acquisition of Australian energy provider Alinta, which was completed in June.

Excluding exceptional items, deferred payment note foreign exchange effects and fair value changes on energy derivatives, underlying net profit for H1 2026 fell 25 per cent to S$369 million, from S$491 million in the same period a year ago.

Despite the drop in reported net profit, Sembcorp declared an interim dividend of S$0.11 a share, up 22 per cent from S$0.09 a share in H1 2025. The dividend will be paid on Sep 4.

The larger dividend reflects “our confidence in the group’s future performance and our commitment to sustainable shareholder returns”, said Sembcorp group CEO Wong Kim Yin.

Group turnover for the six months rose 28 per cent to S$3.77 billion, up from S$2.94 billion a year earlier. This was driven by higher energy prices in Singapore under its gas and related services business, as well as the consolidation of Alinta’s revenue.

Underlying net profit for the gas and related services segment fell 14 per cent to S$285 million, from S$330 million previously. The decline was largely due to lower earnings in the UK following the exit of a customer, as well as lower generation spreads in Singapore.

The renewables segment posted a 48 per cent decline in underlying net profit to S$69 million, down from S$132 million in H1 2025.

Sembcorp cited continued curtailment, the loss of value-added tax refunds and a transition to market-based pricing in China, alongside weaker wind and solar resources that reduced generation output.

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Underlying net profit for integrated urban solutions fell 16 per cent to S$62 million from S$74 million, mainly due to the absence of contributions from SembEnviro following its disposal in 1H2025.

Alinta contributed S$5 million in underlying net profit for the one-month period following the completion of its acquisition.

On a pro forma basis, assuming the acquisition had been completed on Jan 1, 2026, Sembcorp’s underlying net profit for H1 2026 would have stood at S$558 million, while turnover would have reached S$5.59 billion.

Sembcorp expects a stronger performance in the second half of 2026, supported by full six-month contributions from Alinta, improved earnings from its gas and related services business, as well as higher land sales in integrated urban solutions.

“As an integrated energy player, we are well-positioned to capture structural demand growth from data centres and AI-related infrastructure,” said Wong.

Sembcorp shares rose 1.1 per cent to close S$0.06 higher at S$5.72 on Wednesday.