Sembcorp Industries reported a 28 percent increase in revenue to S$3.771 billion in the first half of 2026, compared with S$2.942 billion a year earlier, supported by higher energy prices in Singapore and the inclusion of Alinta’s Australian operations from June 1, 2026.
Revenue from contracts with customers reached S$3.765 billion, while rental income contributed S$6 million. Sembcorp recognised S$3.458 billion of customer-contract revenue over time and S$307 million at a point in time.
Despite the revenue expansion, underlying net profit declined 25 percent from S$491 million to S$369 million. Underlying adjusted EBITDA fell 5 percent from S$1 billion to S$947 million, while underlying EBITDA decreased 3 percent from S$789 million to S$768 million.
Reported profit attributable to shareholders dropped 72 percent from S$536 million to S$150 million, partly reflecting S$155 million of transaction costs associated with the Alinta acquisition. Group profit for the period declined 70 percent to S$164 million.
Energy products generate S$3 billion in revenue
Energy products and related services, including electricity, gas and steam supplied to customers, generated S$3.002 billion in revenue during 1H2026.
Water supply, water reclamation and industrial wastewater treatment contributed S$166 million. Service-concession revenue reached S$127 million, while construction and engineering activities generated S$225 million.
Sales of environmental attributes contributed S$41 million, and other activities generated S$204 million.
Gas and Related Services revenue rises to S$2.57 billion
Gas and Related Services remained Sembcorp’s largest business division, with external revenue increasing from S$2.093 billion in 1H2025 to S$2.573 billion in 1H2026. Total segment turnover, including internal transactions, reached S$2.582 billion.
The division generated adjusted EBITDA of S$413 million, down S$54 million or 12 percent from S$467 million. Net profit declined S$45 million, or 14 percent, from S$330 million to S$285 million.
Singapore performance was affected by lower vesting volumes and spark spreads and gas curtailment following a supplier’s force majeure declaration. UK earnings declined because of lower wholesale power prices, weaker customer demand and the end of fixed-fee income after a customer’s plant was decommissioned in December 2025. Higher contributions from China and Myanmar partially offset these pressures.
Sembcorp expects the division’s performance to strengthen in the second half of 2026 following the commissioning of a 600 MW hydrogen-ready power plant. The plant is positioned to serve rising electricity demand from Singapore’s data-centre and high-technology manufacturing customers.
Alinta contributes S$357 million in one month
Sembcorp acquired 100 percent of Pioneer Sail Holdings and Latrobe Valley Power Holdings, collectively known as Alinta, on June 1, 2026.
Alinta contributed S$357 million in external revenue, S$35 million in adjusted EBITDA and S$5 million in underlying net profit during its first month of consolidation. Transitional derivative-close-out costs affected the June EBITDA result.
Had Alinta been consolidated from January 1, Sembcorp estimated that first-half revenue would have reached S$5.589 billion and underlying net profit would have been S$558 million.
The acquired Australian energy business owns 3.4 GW of operating generation capacity and has a development pipeline of up to 10.4 GW of renewable energy and firming projects.
Sembcorp invests S$5.06 billion in Alinta
Sembcorp paid S$5.064 billion in cash for Alinta, including repayment of S$710 million in loans from the previous shareholder. After accounting for S$545 million of acquired cash, the net acquisition cash outflow was S$4.519 billion.
The acquisition included S$4.784 billion of identifiable assets and S$2.396 billion of liabilities, producing identifiable net assets of S$2.388 billion. Sembcorp recognised S$2.676 billion of provisional goodwill.
Acquired assets included S$2.371 billion of property, plant and equipment, S$375 million of intangible assets, S$57 million of interests in associates and joint ventures, S$1.15 billion of receivables, S$187 million of other investments and derivative assets, and S$99 million of inventories.
Following the acquisition, Alinta had S$7.275 billion of total segment assets and S$4.174 billion of liabilities at June 30, 2026.
Renewables revenue reaches S$421 million
The Renewables division generated external revenue of S$421 million, down from S$431 million in 1H2025. Including inter-segment transactions, turnover reached S$464 million compared with S$461 million a year earlier.
Adjusted EBITDA declined 4 percent from S$398 million to S$381 million. Net profit fell 41 percent from S$140 million to S$82 million.
Performance was affected by weaker wind and solar resources in China and India, lower electricity tariffs and the withdrawal of the value-added tax refund for Chinese onshore wind projects. Lower average battery-market prices also affected the UK energy-storage business.
Newly commissioned assets provided partial support, although additional capacity in Oman and China increased depreciation and financing costs. Sembcorp expects weaker resources and tariffs to continue affecting China in the second half, partly offset by new operating capacity in India.
Renewables received S$117 million of capital expenditure during 1H2026, compared with S$286 million a year earlier.
Integrated Urban Solutions revenue falls to S$108 million
Integrated Urban Solutions generated S$108 million in external revenue, compared with S$134 million in 1H2025. Adjusted EBITDA declined 8 percent from S$101 million to S$93 million, while net profit fell from S$74 million to S$62 million.
The result reflected the timing of land sales and the absence of earnings from SembWaste following its March 2025 divestment. Higher residential sales and increased water volumes in China provided partial support.
Sembcorp is developing 0.9 million square metres of ready-built factories, which are expected to generate recurring income after completion. The company anticipates stronger second-half performance from higher land sales.
Decarbonisation Solutions reduces loss by 38%
Decarbonisation Solutions reported S$20 million in external revenue and S$38 million in total turnover, compared with S$24 million and S$34 million, respectively, in 1H2025.
The division’s net loss narrowed 38 percent from S$13 million to S$8 million, an improvement of S$5 million driven mainly by cost controls.
Other Businesses and Corporate generated S$292 million in external sales. Adjusted EBITDA declined 16 percent from S$55 million to S$46 million, while the underlying net loss widened from S$32 million to S$44 million. Timing differences in specialised construction project milestones contributed to the lower performance.
Singapore provides 70% of Sembcorp revenue
Singapore remained Sembcorp’s largest market, with revenue increasing from S$2.082 billion to S$2.625 billion. The country contributed 70 percent of group revenue and received S$125 million, or 52 percent, of capital expenditure.
Australia contributed S$355 million, representing 9 percent of revenue, and attracted S$27 million of capital expenditure.
UK revenue declined from S$267 million to S$209 million, representing 5 percent of the group total. China revenue fell from S$199 million to S$187 million, while India decreased from S$193 million to S$180 million. Each market contributed 5 percent of group revenue.
Revenue increased from S$32 million to S$34 million in Oman and from S$30 million to S$33 million in Vietnam. The rest of Asia generated S$135 million, up from S$129 million, while the rest of the Middle East contributed S$7 million.
India received S$64 million, or 27 percent, of group capital expenditure. Oman attracted S$14 million, the UK S$7 million, China S$3 million, and Vietnam and the rest of Asia S$1 million each.
Investment commitments rise to S$1.29 billion
Group capital expenditure totalled S$242 million in 1H2026, down from S$412 million a year earlier. Gas and Related Services received S$92 million, Alinta S$27 million, Renewables S$117 million, Integrated Urban Solutions S$3 million, Decarbonisation Solutions S$1 million and Other Businesses S$2 million.
Contracted property, plant and equipment commitments increased from S$613 million at the end of 2025 to S$1.164 billion at June 30, 2026, mainly because of Alinta and Singapore renewable projects.
Commitments for investment properties reached S$108 million, while uncalled commitments for joint ventures and other investments stood at S$18 million. Total commitments increased from S$749 million to S$1.29 billion.
Sembcorp’s total assets expanded by S$7.3 billion from S$18.429 billion to S$25.711 billion, while liabilities increased by S$7.4 billion to S$19.918 billion, primarily reflecting the Alinta acquisition and related financing.
The group expects underlying net profit in the second half of 2026 to exceed the S$369 million recorded in the first half, supported by Alinta, the new 600 MW Singapore power plant, Indian renewable capacity and stronger land sales.
SHAFANA FAZAL