Sembcorp Industries delivered a "resilient performance" for the full year of 2025 (FY2025), characterized by stable underlying profits despite a dip in overall revenue and some macroeconomic headwinds.
The report, released in February 2026, highlights a company in the middle of a massive transition from conventional energy to a renewables powerhouse. Here are the detailed highlights:
1. Financial Performance
While some top-line numbers were lower than in 2024 due to falling energy prices, the company maintained strong profitability.
Net Profit: Underlying Group net profit remained steady at S$1.0 billion.
Turnover: Decreased by 10% to S$5.8 billion (down from S$6.4 billion in FY2024), primarily due to lower wholesale electricity and gas prices in Singapore and the UK.
Dividends: The Board proposed a final dividend of 16.0 cents, bringing the total dividend for 2025 to 25.0 cents per share (a 9% increase from 2024).
Return on Equity (ROE): Remained high at 18.2% (though slightly down from 20.3% the previous year).
2. Segment Highlights
The report shows a shift in where Sembcorp makes its money:
Renewables: This was a major growth engine. Net profit for this segment rose 5% to S$192 million. The company added 3.6GW of capacity in 2025 alone, bringing its total gross renewables capacity to 20.4GW (including projects under construction).
Gas and Related Services: Contributed the bulk of the profit (S$701 million), though it faced lower margins in the UK. Sembcorp also increased its stake in Senoko Energy to 50% to strengthen its grip on the Singapore market.
Integrated Urban Solutions: Net profit rose 3% to S$178 million, driven by a growing portfolio of low-carbon industrial parks across Asia.
3. Strategic & Sustainability Milestones
2025 was a "target year" for Sembcorp’s 2021–2025 transformation plan:
Clean Energy Transition: The company has now invested over S$5 billion in renewable energy projects globally.
Hydrogen Ready: Progress continued on the 600MW hydrogen-ready power plant on Jurong Island, which is expected to be operational by Q4 2026.
Decarbonization: Sembcorp is enabling cross-border green energy, including 2.2GW of low-carbon electricity imports into Singapore from Vietnam and Malaysia.
4. Outlook for 2026
The report warned of some "re-contracting" risks in 2026. About 5% of Sembcorp’s Singapore gas portfolio and half of Senoko Energy’s portfolio will be re-contracted, likely at lower margins than the previous high-price cycle. However, the company expects these to be partially offset by operational synergies from the increased Senoko stake.
With less turnover and yet delivering the same amount of profit as last FY. Sembcorp is heading toward a higher net profit margin. This howed they are heading the right direction
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