Post Reply
321-340 of 16274
Only will know the truth after the tight issues, just buy sure win! huat lar !
Dyodd
Dyodd
The extensive damage at Qatar&rsquo s Ras Laffan LNG plant is unlikely to directly impact Sembcorp Industries, as the company has clarified that its LNG supply arrangements draw from multiple global sources and not from the Middle East. However, the disruption could indirectly affect Sembcorp through higher global LNG and oil prices, which may influence its power generation costs and margins.
🔎 Direct Impact on Sembcorp
- No Facility Damage: Sembcorp rebuffed reports earlier this month that its UAE Fujairah F1 power and water plant was hit by Iranian strikes operations there continue normally.
- Supply Sources: Sembcorp stated its LNG cargo deliveries scheduled for 2026 are not sourced from the Middle East, reducing direct exposure to Qatar&rsquo s halted production.
🌍 Indirect Market Effects
- Global LNG Supply Shock: Qatar&rsquo s Ras Laffan plant accounted for ~20% of global LNG supply before the attack. Its shutdown has already sent European gas prices up ~6% and Brent crude up ~5%.
- Price Volatility: Sembcorp, as a major power and utilities player, could face higher input costs for LNG and oil-linked contracts. This may pressure margins unless costs are passed through to customers.
- Energy Security Concerns: Asian markets (including Singapore) rely heavily on imported LNG. Prolonged outages in Qatar could tighten supply and raise procurement costs for regional utilities.
📊 Scenario Table: Impact on Sembcorp
| Scenario | Direct Effect | Indirect Effect | Likely Outcome |
|---|---|---|---|
| Short-term outage (weeks) | No direct hit to Sembcorp facilities | LNG spot prices rise temporarily | Manageable cost increase, hedging cushions impact |
| Medium-term outage (months) | No direct hit | Sustained LNG price surge, tighter supply | Higher procurement costs, possible margin squeeze |
| Long-term outage (half-year+) | No direct hit | Structural supply shortage, Asia competition for cargoes | Sembcorp may need to diversify further, pass costs to customers |
⚖ ️ Risks & Considerations
- Fuel Cost Pass-through: Sembcorp&rsquo s contracts often allow cost pass-through, but timing and regulatory approvals matter.
- Market Hedging: If Sembcorp hedged LNG purchases, near-term volatility may be cushioned.
- Regional Competition: Asian buyers (Japan, Korea, Singapore) will compete harder for non-Qatar LNG cargoes, potentially raising procurement costs.
✅ Bottom Line: Sembcorp is insulated from direct damage but exposed to global LNG price volatility. The Qatar incident highlights the fragility of energy supply chains, and while Sembcorp&rsquo s diversified sourcing helps, prolonged outages could still pressure margins.
wait4opp ( Date: 19-Mar-2026 13:33) Posted:
|
https://www.theedgesingapore.com/news/oil-gas/worlds-largest-lng-plant-suffers-extensive-damage-qatar-says
Sembcorp shares end 4.3% higher as CGSI adds counter to top Singapore picks
Analysts say the stock is trading at an &lsquo undemanding&rsquo valuation of nine times its estimated FY2027 PE ratio
[SINGAPORE] Shares of energy player Sembcorp Industries : U96 +4.27% jumped on Wednesday (Mar 18), buoyed by a bullish broker note highlighting its defensive qualities.
The counter was up as much as 4.4 per cent over the day, climbing S$0.26 to reach S$6.11 as at 4.07 pm. It later closed at S$6.10, up by 4.3 per cent or S$0.25, with 11.3 million shares changing hands.
The rally comes as CGS International (CGSI) added Sembcorp to its list of Singapore top picks, while keeping its target price steady at S$7.68. In a report on Mar 17, the research house cited the company&rsquo s relatively cheap valuation and its defensive qualities against global gas price volatility.
Natural gas futures have fluctuated recently. They slipped 3.6 per cent to US$2.93 per million British thermal units (mmBtu) on Wednesday, after having surged to a high of US$3.23 per mmBtu on Mar 12 &ndash which was nearly 13 per cent above the pre-Iran war price of US$2.86 per mmBtu.
Bargain valuation
CGSI analysts noted that the stock is trading at an &ldquo undemanding&rdquo valuation of nine times its estimated FY2027 price-to-earnings ratio, presenting higher dividend potential.
Following a recent non-deal roadshow in Kuala Lumpur, analysts Lim Siew Khee and Meghana Kande noted that Sembcorp is largely sheltered from global gas price shocks. The group&rsquo s long-term power contracts feature fixed margins and cost pass-through mechanisms.
Furthermore, the company relies on piped natural gas import contracts with Indonesia and Malaysia, which carry low supply risk, according to management. This positions Sembcorp well to navigate limited liquefied natural gas supplies following Qatar Energy&rsquo s recent force majeure declaration, the analysts said.
Addressing concerns regarding Sembcorp&rsquo s balance sheet, CGSI noted that the acquisition of unlisted Alinta Energy is expected to push the group&rsquo s net debt-to-Ebitda ratio up to between 4.6 and 4.7 times in FY2026, from 3.9 in 2025.
However, its analysts pointed out that Sembcorp&rsquo s management views the leverage as manageable, and reiterated its priority to gradually increase its dividend payout ratio towards a target of 60 to 70 per cent, from 44 per cent in 2025.
The Alinta deal is also projected to be earnings accretive, adding roughly S$100 million in the second half of FY2026 and generating annual cash flows of over S$700 million.
CGS International reiterates Sembcorp as top pick with $7.68 target price
For all the recent volatility in the global energy market, Lim Siew Khee and Meghana Kande of CGS International have reiterated their upbeat call on Sembcorp Industries.
Citing its ' undemanding' valuation of 9x FY2027 earnings and potential for a higher dividend payout, Sembcorp, for CGSI, is one of the current crop of top picks.
" Amid the rise in global gas prices, we think Sembcorp is well protected," state Lim and Kande in their March 17 note.
First, Sembcorp has in place numerous multi-year power contracts, which include fixed margin and cost pass-through mechanisms, which shields it from changes in the spot prices of global energy products.
Also, besides importing gas from the Middle East, which is seeing supply constraints, Sembcorp imports natural gas via pipelines from Indonesia and Malaysia that it can use for its own power generation or for sale to others affected by limited liquified natural gas (LNG) supply following Qatar Energy&rsquo s force majeure declaration, the analysts say.
Sembcorp management, at a recent roadshow organised by CGSI, maintains that there is low risk to the imported pipeline gas supply, which the analysts figure is a higher proportion of its total gas imports.
According to the analysts, they had previously assumed a $30 million hit to Sembcorp' s gas segment earnings as contracts up for renewal later this year will be at a lower spark spread.
They hold a different view now. " If global disruptions to gas supply persist, we think this impact could be mitigated through larger risk premiums in power contracts. With the changing situation, they are not including potential upside to their estimates for now.
Sembcorp was in the news late last year with the acquisition of Australian power company Alinta.
The acquisition, to be funded with debt, will likely raise the company' s net debt-to-ebitda from 3.9x in FY2025 to between 4.6 and 4.7x in FY2026.
From the perspective of Lim and Kande, this heavier gearing is deemed " manageable" and Sembcorp has guided for a steady increase in its dividend payout from 44% of the earnings to between 60 and 70%.
Meanwhile, Sembcorp expects the acquisition of Alinta to help lift its earnings by $100 million in 2HFY2026 and boost its annual cash flow by over $700 million.
This deal, pending approval from Australian authorities, is expected for completion by end of June.
Lim and Kande' s price target of $7.68 is based on 12x FY2027 earnings, which is a slight discount from 13x valuation multiple fetched by Sembcorp' s peers.
Potential positive catalysts may be from additional long term power purchase agreements, such as Micron, which is expanding its facilities in Singapore and who is already a customer.
Another catalyst may be value-unlocking moves such as an IPO by Sembcorp of its renewable energy portfolio in India and urban solutions business in Vietnam.
On the other hand, downside risks include prolonged power plant shutdowns, and unfavourable regulatory changes impacting operations.
Sembcorp shares end 4.3% higher as CGSI adds counter to top Singapore picks
Analysts say the stock is trading at an 'undemanding' valuation of nine times its estimated FY2027 PE ratio
BT
Published Mar 18, 2026 04:17 PM
Updated Mar 18, 2026 06:47 PM
[SINGAPORE] Shares of energy player Sembcorp Industries
jumped on Wednesday (Mar 18), buoyed by a bullish broker note highlighting its defensive qualities.
The counter was up as much as 4.4 per cent over the day,
climbing S$0.26 to reach S$6.11
as at 4.07 pm. It later closed at S$6.10, up bv 4.3.......
==== paywall =====
Analysts say the stock is trading at an 'undemanding' valuation of nine times its estimated FY2027 PE ratio
BT
Published Mar 18, 2026 04:17 PM
Updated Mar 18, 2026 06:47 PM
[SINGAPORE] Shares of energy player Sembcorp Industries
jumped on Wednesday (Mar 18), buoyed by a bullish broker note highlighting its defensive qualities.
The counter was up as much as 4.4 per cent over the day,
climbing S$0.26 to reach S$6.11
as at 4.07 pm. It later closed at S$6.10, up bv 4.3.......
==== paywall =====
wa....opening so powerful....
Good point to bear in mind. EMA did not yet initiated TPC as now is close to Apr to Jun 2026 annoucement by EMA which has monitored the situation since Feb 28 war has begun. In many regions (e.g., North South Wales, Queensland, South Australia provinces), the retail market is deregulated, allowing retailers to set their own prices to compete for customers.
stockpicker ( Date: 18-Mar-2026 22:04) Posted:
|
Definitely, bring back the memories...except for the second one in the list.
徐 少 强 passed away last year, while 张 英 才 had passed away many many years already.
徐 少 强 passed away last year, while 张 英 才 had passed away many many years already.
beetlejuice ( Date: 18-Mar-2026 20:39) Posted:
|
天 蚕 再 变
beetlejuice ( Date: 18-Mar-2026 20:39) Posted:
|
SembCorp might benefit more from the sale of renewable energy if there is a hike in energy prices.
stockpicker ( Date: 18-Mar-2026 22:04) Posted:
|
It is good to bear in mind that Singapore EMA has initiated a TPC (Temporsry Power Cap) in 2023 that will act as a circuit breaker to mitigate extreme price volatility in the Singapore Wholesale Electricity Market (SWEM). Similarly, Australia might have the same kind of control.
https://www.ema.gov.sg/news-events/news/media-releases/2023/introduction-of-the-temporary-price-cap#:~:text=22%20Jun%202023,marginal%20cost%20of%20electricity%20production.
https://www.ema.gov.sg/news-events/news/media-releases/2023/introduction-of-the-temporary-price-cap#:~:text=22%20Jun%202023,marginal%20cost%20of%20electricity%20production.
沈 胜 衣 , 湖 海 争 霸 录 , 圆 月 弯 刀 , 大 内 群 英 , ... sound familiar?
JurongW ( Date: 18-Mar-2026 17:33) Posted:
|
Due to oil and gas price supply limit, Australia retailers have to adjust upside in the electricity and gas price for corporate and retail customers. Example is a SCI-acquired Alinta Energy which currently account for 20% of total 20 GW. This is unlike EMA (sole authority will adjust quarterly electricity and gas tariffs, this is, Apr-jun 2026 out soon). With mindset in few or some analysts targeting $10 or above over a long term, this will be well-aligned with current average industry averages of PE ratio, etc. Current target of $7 or above can be a beginning step. Factors contributing to $10 target price are SCI's ability to reduce debts fast from all operation including that of Alinta Energy due to massive positive cash inflow, SCI's plan to increase dividend payout to 60%-70% from 30%-40%, too low PER of 10++ and current dividend of 4%++. Alinta Energy's strong growth is still on the wild card with 10GW largely renewables in the development pipeline, and IPO of Indian assets where India's gas and electricity price are much upside. As the war is persisent, let reiterate that SCI will benefit from the upside in gas and electricity price since SCI has signed a long term has supply for at least 10 years to shelter SCI well.
JurongW ( Date: 18-Mar-2026 17:28) Posted:
|
Memories start to flood back when you mention 云 飞 扬 . Watch 天 蚕 变 in my youth.
beetlejuice ( Date: 18-Mar-2026 17:21) Posted:
|
大 风 起 兮 云 飞 扬 .
To all who bought into the energy TLC trio at lelong prices these 2 weeks, GOOD JOB. 💰
JurongW ( Date: 18-Mar-2026 16:57) Posted:
|
STI finally recover back to 5000 points - Chart looks great, going to challenge its all time high??
Thanks to 3 big banks, STE, Sembcorp, Singtel, SGX, Keppel, Seatrium...and many more.
Thanks to 3 big banks, STE, Sembcorp, Singtel, SGX, Keppel, Seatrium...and many more.
I said a few times liao...below $6 just collect with spare cash...keppel run so far already, this one surely one day, under ah gong umbrella...zai one
as usual dyodd
as usual dyodd