Sembcorp unit signs 10-year power purchase agreement with Singtel worth around S$180 million annually

SEMBCORP Industries said on Thursday (May 25) that its wholly-owned subsidiary Sembcorp Power has signed a 10-year power purchase agreement to supply electricity to Singtel, with an annual contract value of around S$180 million.

Sembcorp said in a bourse filing that the power purchase agreement will commence on Oct 1 this year, and is subject to approval by Singtel’s shareholders at the upcoming annual general meeting.

Sembcorp added that the contract will be accretive to earnings for its financial year ending December 2023.

Sembcorp Industries shares rose 0.4 per cent on Thursday to close at S$4.90, while Singtel shares slipped 1.2 per cent to close at S$2.53.