Sembcorp’s Profit from Renewables Increases by 54% to $87 Million in 1H 2023

The company recorded a turnover of S$3.7 billion in the first six months


Singapore-based renewable energy company Sembcorp Industries recorded a net profit of S$602 million (~$449.7 million) in the first half (1H) of 2023, an increase of 55% year-over-year (YoY) with higher contributions from both conventional energy and renewables segments.

Net profit from the renewables segment was S$117 million (~$87.21 million), an increase of 54% YoY. The stronger performance was mainly driven by contributions from the 35%-owned State Development Investment Corporate Group (SDIC) New Energy and Shenzhen Huiyang New Energy (HYNE) in China and acquisitions completed in the first quarter of 2023.

The net profit does not include the losses incurred from the discontinued operations of Semborp Energy India Limited.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the January-June period was S$1.14 billion (~$849.8 million), an increase of 50% YoY.

Sembcorp recorded a turnover of S$3.65 billion (~$2.72 billion) in 1H 2023, a decrease of 6% YoY.

Gross installed renewables capacity at the end of June 2023 was 8.6 GW, compared to 5.4 GW during the same period last year. Gross renewables capacity (installed and under development) totaled 11.9 GW.

The company recorded an increase in SDIC New Energy’s capacity by 1.7 GW since its acquisition, including a 750MW concentrated solar power project in China. It also commissioned its first 100 MW/ 200 MWh energy storage system project as a joint venture with Xingling New Energy.

Sembcorp Renewables Capacity

Source: Sembcorp

“The group continued to perform well in the first half of the year with strong earnings from the conventional energy and renewables segments. With 2.1 GW of renewables projects added in 1H 2023, our gross renewables capacity has reached 11.9 GW with 8.6GW of capacity installed and 3.3GW under development. The group remains focused on the execution of our brown-to-green transformation strategy and creating long-term value for our stakeholders,” said Wong Kim Yin, Group President and CEO of Sembcorp Industries.

Sembcorp India has a diverse portfolio of conventional and renewable energy assets totaling over 5 GW, in operation and under construction. Sembcorp Green Infra, a subsidiary of Sembcorp India, oversees the company’s renewable energy portfolio in India, comprising more than 2.3 GW of wind and operational solar power assets or under construction.

The company also declared completion of the following acquisitions – a 100% stake in Vector Green, a 583 MW portfolio in India, a 49% stake in a 795 MW solar portfolio owned by BEI Energy Development in China, and 892 MW wind and solar portfolio through 45.3%-owned Xingling New Energy in China.

In March this year, the company was awarded a greenfield renewables project, a 500 MW build-own-operate solar project in Oman.

In an exclusive interview with Mercom India, A. Nithyanand, Business Head – Renewables, Sembcorp India, talked about the market conditions over the past few years and the company’s plans for future growth in India.