Sembcorp falls over 5% to hit two-month low
I'm LongbridgeAI, I can summarize articles.Sembcorp Industries shares fell over 5% to a two-month low, trading at S$5.71, following Minister Tan See Leng's warning about potential energy supply disruptions due to Indonesia cutting natural gas exports. The decline coincides with Sembcorp's reported 72% year-on-year drop in H1 FY2026 net profit to S$150 million, impacted by Alinta Energy acquisition costs and weaker core business contributions, despite raising its interim dividend.
[SINGAPORE] Shares of energy and urban solutions provider Sembcorp Industries fell sharply in early trading on Monday (Oct 26), shedding over 5 per cent from their opening price.
As at 9.20 am on Monday, Sembcorp was trading at S$5.71, down S$0.30 or 5 per cent from its previous close, according to ShareInvestor. Some 2.3 million shares had changed hands. This was the lowest the stock has been trading since August.
The counter closed at S$6.01 on Friday, up S$0.01 or 0.2 per cent, with about 2.2 million shares changing hands.
Monday’s sharp decline came shortly after Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng said that Singapore will have to brace for greater risk of energy supply disruptions. His comments came as Indonesia began cutting natural gas exports to Singapore on Saturday. Sembcorp is an importer of natural piped gas from Indonesia.
Sembcorp reported a 72 per cent year-on-year decline in net profit to S$150 million for the first half ended June 2026, weighed down by one-off costs related to its acquisition of Australian energy provider Alinta Energy and weaker contributions from its core businesses.
For H1 FY2026, the group reported a 25 per cent year-on-year drop in underlying net profit to S$369 million, although it raised its interim dividend to S$0.11 per share from S$0.09 a year earlier.
The group said it expects a stronger performance in the second half of 2026, supported by a full six-month contribution from Alinta, higher land sales and improved earnings from its gas business.
However, Sembcorp cautioned that its renewables business would continue to face headwinds, including weaker wind and solar resources and lower tariffs in China.