Sembcorp Awarded 300MW Solar Project by NHPC

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Sembcorp Industries ($SGX:U96), a Singapore-based energy, marine, and urban development group, has been awarded the Letter of Award by the National Hydroelectric Power Corporation (NHPC) for a 300MW solar project. Sembcorp Industries is one of the leading conglomerates in Asia. It has a presence in over twenty countries and a broad portfolio spanning energy, marine, and urban development. The company is listed on the Singapore Exchange and part of the Straits Times Index. The 300MW solar project is expected to be Sembcorp Industries’ largest standalone solar project and its first in India. It will be built in Jodhpur, India.

The project will include the supply, installation, testing and commissioning of solar photovoltaic modules, including the building of the required infrastructure such as evacuation and substations. The contract awarded by the NHPC demonstrates Sembcorp Industries’ commitment to developing renewable energy projects. The company has invested in several large-scale renewable energy projects across Asia and Europe including wind, biomass, hydro and solar. This is part of its strategy to develop clean energy solutions and reduce its carbon footprint.

Price History

On Friday, SEMBCORP INDUSTRIES was awarded a 300MW solar project by the National Hydroelectric Power Corporation (NHPC), India’s largest hydropower utility company. This marks the largest solar project awarded to a Singapore company, allowing Sembcorp to expand its portfolio of solar projects in India. Despite the news of this major development, SEMBCORP INDUSTRIES stock opened and closed at SG$5.2, down 0.4% from its previous closing price of 5.2. This could likely be due to the overall bearish market sentiment weighing on the stock. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Sembcorp Industries are shown below. More…

Analysis

GoodWhale has conducted an in-depth analysis of SEMBCORP INDUSTRIES‘s fundamentals and has classified the company as a ‘rhino’, which reflects a company that has achieved moderate revenue and earnings growth. SEMBCORP INDUSTRIES has an intermediate health score of 6/10 when it comes to its cashflows and debt, indicating that the company will be able to survive any crisis without worrying about bankruptcy. Furthermore, SEMBCORP INDUSTRIES is strong in dividend and medium in asset, growth, and profitability. Given these results, investors who are looking for companies that are able to yield steady returns and withstand any market downturns may be interested in investing in SEMBCORP INDUSTRIES. More…

Peers

Sembcorp Industries Ltd is one of the leading energy, water and marine companies in the world. As a Singapore-based conglomerate, it is engaged in a wide range of businesses across the energy, water, waste, industrial and marine sectors. Its competitors include Endur ASA, Mytilineos SA and Fitters Diversified Bhd, all of which are well-recognized international companies in their respective sectors.

– Endur ASA ($LTS:0JGO)

Endur ASA is a Norwegian energy company that specializes in crude oil and derivatives trading. The company has a market capitalization of 962.36M as of 2022 and a Return on Equity (ROE) of 5.71%. Endur ASA’s large market capitalization reflects its ability to successfully convert a strong portfolio of energy investments into significant returns. The company’s ROE of 5.71% indicates its ability to generate profits from its equity investments, showing that the company is a financially sound investment.

– Mytilineos SA ($OTCPK:MYTHY)

Mytilineos SA is a Greek industrial and energy company with a focus on energy, metal and engineering. It is one of the largest diversified energy companies in Greece, with operations in the fields of electricity, natural gas, renewables, aluminium and construction. With a market cap of 2.91B as of 2022, Mytilineos SA is one of the top companies in Greece. Additionally, Mytilineos SA has a very impressive return on equity (ROE) of 14.63%, which is significantly higher than the industry average. This indicates that the company is able to generate more profit from its assets compared to other companies in the same industry.

– Fitters Diversified Bhd ($KLSE:9318)

Fitters Diversified Berhad is a Malaysian-based conglomerate that is engaged in various businesses ranging from manufacturing to property development. The company has a market capitalization of 66.88 million as of 2022 and a Return on Equity of -2.15%. Market capitalization is the total value of the company’s outstanding shares, while Return on Equity measures how effectively the company is using its shareholders’ equity to generate returns. The company’s negative ROE indicates that it is not efficiently utilizing its resources to generate profits.

Summary

SEMBCORP Industries is a Singapore-based energy, marine, and urban development company that is well-positioned to benefit from the secular growth in renewable energy. Recently, the company was awarded a Letter of Award from NHPC to develop a 300 megawatt solar project. This is expected to significantly contribute to SEMBCORP’s renewable energy portfolio. On the financial side, the company has a track record of strong earnings growth and a healthy balance sheet with low debt levels.

Additionally, the company has a healthy dividend yield of around 4%, which is higher than its peers. Overall, SEMBCORP Industries is an attractive investment for those looking to benefit from the growth in green energy.