Sembcorp Industries: A Rising Star in Singapore's Stock Market

Sembcorp Industries (SGX: U96) was the top gainer in Singapore's stock market on Friday, with its share price surging over 1.10% to 5.52. The company's strong performance can be attributed to several factors, including its strategic focus on renewable energy and energy transition, as well as its robust financial performance in 2023 and 2024.



Sembcorp's commitment to renewable energy and energy transition has positioned the company for long-term success. In 2023, the company's Renewables segment showed a 42% growth in net profit, driven by organic growth and partnerships. As of February 2024, gross installed renewables capacity reached 9.8GW, and gross renewables capacity increased to 13.8GW, representing 65% of Sembcorp's energy portfolio. This strong performance in the Renewables segment has contributed to the company's overall growth and resilience.

In addition to its strong performance in the Renewables segment, Sembcorp has also demonstrated robust financial performance in 2023 and 2024. In 2023, the company reported a net profit after exceptional items and discontinued operation of S$942 million, an increase of 11% from the previous year. The company's free cash flow also increased to S$2.0 billion from S$1.7 billion in 2022. In 1H2024, Sembcorp posted a net profit before exceptional items of S$532 million, which was 2% higher compared to S$530 million in 1H2023.



Sembcorp's strategic focus on renewable energy and energy transition, coupled with its strong financial performance, has positioned the company for long-term success. As the demand for clean energy continues to grow, Sembcorp's commitment to this sector will likely drive further growth and value creation for its stakeholders. Investors should keep a close eye on Sembcorp Industries as it continues to navigate the path of energy transition and capture market opportunities in the energy sector.