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As we now have alternative supplies and a few months storage of energies, it is expected the impact of fuel oil price rise will take 3 to 6 months to filter through and cause a rise in electricity tariff.
https://www.channelnewsasia.com/singapore/oil-gas-prices-energy-security-tan-see-leng-5988096
https://www.channelnewsasia.com/singapore/oil-gas-prices-energy-security-tan-see-leng-5988096
Sembcorp&rsquo s prospects are seen as improving due to two main drivers: the Middle East conflict, which has pushed up global energy prices, and its acquisition of Alinta Energy in Australia, which expands its renewable and retail footprint.
🔑 Salient Points from The Edge Article
1. Impact of Middle East Conflict
- Strait of Hormuz disruption: Maritime insurers have stopped covering vessels in the Persian Gulf, effectively blocking one of the world&rsquo s most critical energy shipping lanes.
- Energy price surge: About 20% of global oil and gas supply flows through the Strait. With shipping disrupted, fuel prices have spiked on fears of shortages.
- Beneficiary positioning: Sembcorp, with diversified energy assets outside the Middle East, benefits from higher global energy prices and reduced reliance on Gulf imports.
2. Alinta Energy Acquisition
- Strategic expansion: Sembcorp&rsquo s purchase of Alinta Energy in Australia strengthens its retail energy presence and accelerates its transition from &ldquo brown&rdquo (fossil fuel-heavy) to &ldquo green&rdquo (renewable-focused) portfolio.
- Renewable integration: Alinta&rsquo s assets include renewable projects and retail distribution, giving Sembcorp a stronger foothold in Australia&rsquo s energy market.
- Portfolio transformation: Since 2021, Sembcorp has been actively shifting toward sustainable energy, and Alinta adds scale and credibility to this strategy.
3. Investor Implications
- Short-term uplift: Rising energy prices from geopolitical conflict provide near-term margin expansion.
- Long-term growth: Alinta acquisition supports Sembcorp&rsquo s renewable energy ambitions, aligning with global ESG trends and investor demand for sustainable assets.
- Risk considerations: While higher energy prices benefit margins, prolonged Middle East instability could increase volatility and global economic risks.
📊 Summary Table
| Factor | Effect on Sembcorp | Investor Takeaway |
|---|---|---|
| Middle East conflict | Higher global fuel prices | Near-term profit uplift |
| Strait of Hormuz disruption | Supply chain risk avoided (no direct imports) | Relative resilience |
| Alinta acquisition | Expands retail & renewable portfolio | Long-term growth driver |
| Portfolio shift (brown &rarr green) | Accelerates ESG positioning | Attracts sustainable investors |
Short positions increase is an illogical activity, creating fear. In fact, SCI is a beneficiary of surging gas and oil price as both are pushing high wholesale electricity price. SCI has 20%-25% wholesale electricity sale exposed to this open market and the electricity price will rise with the global oil and gas market. Another story refer to Edge magazine this morning: "Sembcorp?s prospects lifted by Middle East conflict and Alinta acquisition"
pursuer76 ( Date: 12-Mar-2026 11:21) Posted:
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v funny. oil price up, oil counters all up. gas price also up, yet sci down.
unable to comprehend the logic.
unable to comprehend the logic.
Looks way undervalued. Another one which could provide good surprises like Seatrium.
https://utilitymagazine.com.au/cataby-power-station-to-strengthen-was-energy-reliability/. The proposed power station to be developed by Alinta Energy in western Australia can generate up to 400 MW electricity.
Even rights issue does not necessarily mean a bad news, especially when they are for funding an accretive business.
once sudden announcement of right issue call, all will start .............
Be careful, better do day trade then......
dyodd
Be careful, better do day trade then......
dyodd
Some reports suggest a rebound in energy renewables due to AI demand and high oil prices acting as a catalyst. The energy renewables (Wind, Solar,) do not require oil to operate. Therefore SCI will greatly benefit even from rise in general gas and electricity price. SCi maintained well contracted piped gas import. Now for SCI, the dividend yield 4.5%.
Sembcorp&rsquo s A$3 billion Alinta loan fuels Australia&rsquo s funding boom
The loan for Sembcorp&rsquo s Australian unit will be split between an acquisition tranche
[SINGAPORE] Sembcorp Industries : U96 +0.35% is seeking a loan of around A$3 billion (S$2.7 billion) to back its purchase of power generator and retailer Alinta Energy, according to people familiar with the matter, adding to a growing wave of acquisition funding in Australia.
The loan for Sembcorp&rsquo s Australian unit will be split between an acquisition tranche &ndash with a tenor ranging from five to 10 years &ndash and a working capital portion, the people said, asking not to be identified discussing private matters.
Goldman Sachs Group and DBS Group Holdings are the joint financial advisers on the deal, which partially refinances a bridge facility of about A$6.5 billion, people familiar added.
Goldman Sachs declined to comment, while Sembcorp and DBS did not immediately respond to requests for comment.
Australia&rsquo s acquisition financing market has started 2026 on strong footing, following a relatively busy 2025. A Macquarie Asset Management-led group is seeking a A$4.95 billion facility to finance its purchase of Qube Holdings, while Brookfield Asset Management and Singapore&rsquo s sovereign wealth fund GIC are raising A$2.77 billion to fund their takeover of National Storage Reit.
Mergers and acquisitions and leveraged buyout financing volumes for Australian borrowers rose 1.5 per cent year on year to US$16.8 billion in 2025, according to Bloomberg-compiled data.
Sembcorp is also mulling raising Singapore dollar-denominated debt to take out part of the bridge, the people said, adding that discussions are ongoing and details could change.
Sembcorp &ndash backed by Temasek Holdings &ndash announced in December that it will buy Alinta for A$6.5 billion in enterprise value from Chow Tai Fook Enterprises, furthering the Singaporean company&rsquo s ambitions to expand outside its home market. The deal is expected to be completed in the first half of 2026, subject to regulatory approval.
The loan for Sembcorp&rsquo s Australian unit will be split between an acquisition tranche
[SINGAPORE] Sembcorp Industries : U96 +0.35% is seeking a loan of around A$3 billion (S$2.7 billion) to back its purchase of power generator and retailer Alinta Energy, according to people familiar with the matter, adding to a growing wave of acquisition funding in Australia.
The loan for Sembcorp&rsquo s Australian unit will be split between an acquisition tranche &ndash with a tenor ranging from five to 10 years &ndash and a working capital portion, the people said, asking not to be identified discussing private matters.
Goldman Sachs Group and DBS Group Holdings are the joint financial advisers on the deal, which partially refinances a bridge facility of about A$6.5 billion, people familiar added.
Goldman Sachs declined to comment, while Sembcorp and DBS did not immediately respond to requests for comment.
Australia&rsquo s acquisition financing market has started 2026 on strong footing, following a relatively busy 2025. A Macquarie Asset Management-led group is seeking a A$4.95 billion facility to finance its purchase of Qube Holdings, while Brookfield Asset Management and Singapore&rsquo s sovereign wealth fund GIC are raising A$2.77 billion to fund their takeover of National Storage Reit.
Mergers and acquisitions and leveraged buyout financing volumes for Australian borrowers rose 1.5 per cent year on year to US$16.8 billion in 2025, according to Bloomberg-compiled data.
Sembcorp is also mulling raising Singapore dollar-denominated debt to take out part of the bridge, the people said, adding that discussions are ongoing and details could change.
Sembcorp &ndash backed by Temasek Holdings &ndash announced in December that it will buy Alinta for A$6.5 billion in enterprise value from Chow Tai Fook Enterprises, furthering the Singaporean company&rsquo s ambitions to expand outside its home market. The deal is expected to be completed in the first half of 2026, subject to regulatory approval.
Sembcorp, Keppel could face challenges in wake of Iran attack
Heightened short-term uncertainties could be a time to stick with higher-confidence long-term structural trends
INVESTORS looking to sustainability plays for immediate shelter from the oil price hikes of the US-Israeli war in Iran may want to tread with caution.
Shares of the purest renewable energy plays on the Singapore Exchange have not fared well in the first few days of trading after the US and Israel launched their attacks on Feb 28.
Sembcorp Industries, a renewable energy developer, closed at S$5.72 last Wednesday (Mar 4), down 6.5 per cent from before the weekend. The Straits Times Index, the Singapore market benchmark, declined by a more modest 3.7 per cent over the same period.
Keppel Corp, an asset manager with significant sustainability-related investments, also underperformed the market with an 8.3 per cent retreat since the attacks to end at S$12 on the same day. Shares of Seatrium, a shipbuilder for both the oil and gas and offshore wind sectors, decreased 3.3 per cent to head out at S$2.32.
Why doesn&rsquo t a surge in oil prices and the prospect of those prices staying elevated for a prolonged period translate into higher optimism for renewable energy players? Shouldn&rsquo t the burden of higher oil prices shift demand towards renewable energy alternatives?
A possible answer is that consumption demand and investment interest in renewable energy are driven by more than just oil prices, and it&rsquo s the multivariate complexity that makes it challenging to draw a clear relationship between oil prices and renewables.
For example, a 2024 working paper by researchers at the International Monetary Fund finds insufficient evidence to show that renewable adoption reduces the impact of fossil fuel price changes on energy inflation rates.
The inconclusive relationship could be a result of difficulties in controlling for national energy policies, threshold effects or trade linkage spillovers, the researchers explain. Whatever the reasons, the uncertainty reduces the confidence in renewable energy as a shield against oil price spikes.
Markets are also highly idiosyncratic, which means that tendencies in one geography can be irrelevant in others. A 2025 paper by Chinese and Spanish researchers finds mixed impact of energy-related uncertainty on US renewable energy demand.
On one hand, energy-related uncertainty spurs efforts to seek sustainable alternatives and accelerate renewable deployment, while greater renewable usage tends to reduce energy-related uncertainty. On the other hand, higher uncertainty about energy prices inhibits investment in renewables. But this study focuses on US data, and the findings may not apply to other markets.
Another study by South Korean researchers suggests that renewable energy consumption can mitigate the risk of oil prices, while higher oil prices can raise concerns about external risks and drive greater investments in renewable energy. But the research focuses only on oil-importing countries.
Those studies illustrate how challenging it can be to model with confidence how the current situation in the Middle East will affect sustainability players.
For a country like Singapore, which imports all of its fuel and relies heavily on natural gas for electricity, higher oil and gas prices could provide greater impetus to diversify the fuel and energy mix. But for a country like Indonesia, which has domestic supplies of oil and gas and coal, higher fossil fuel prices could drive greater investments into domestic extraction and energy activities.
Adjacent to the energy sector, in the transportation arena higher fossil fuel prices might not necessarily drive up demand for electric vehicles. In markets where electricity is primarily produced by fossil fuels, higher oil and gas prices could also raise electricity prices. Furthermore, immediate demand for electric vehicles is highly dependent on the level of access to charging infrastructure.
Probably the most significant impact from attacks in Iran is that it becomes more difficult to predict the future prospects for renewable players, which can chill investment interest. Without a good idea of how long the war might last, much less the objectives of the campaign, it&rsquo s difficult to use that as a decision input for assessing renewable investments, some of which can be long-term infrastructure projects.
What are sustainable investors to do in these times? Heightened short-term uncertainties could be a time to stick with higher-confidence long-term structural trends.
For instance, a rather popular thesis &ndash often used in scenario analyses as a potential future &ndash is that the inevitable physical impact of climate change and slow-to-act policymakers will drive increased disorderly transition risks. That scenario may not change much even if there is a war in the Middle East.
In fact, some of the potential beneficiaries of this long-term trend &ndash renewable energy players, infrastructure developers and green real estate players, for example &ndash could be bargain pick-ups in the current market turmoil.
Heightened short-term uncertainties could be a time to stick with higher-confidence long-term structural trends
INVESTORS looking to sustainability plays for immediate shelter from the oil price hikes of the US-Israeli war in Iran may want to tread with caution.
Shares of the purest renewable energy plays on the Singapore Exchange have not fared well in the first few days of trading after the US and Israel launched their attacks on Feb 28.
Sembcorp Industries, a renewable energy developer, closed at S$5.72 last Wednesday (Mar 4), down 6.5 per cent from before the weekend. The Straits Times Index, the Singapore market benchmark, declined by a more modest 3.7 per cent over the same period.
Keppel Corp, an asset manager with significant sustainability-related investments, also underperformed the market with an 8.3 per cent retreat since the attacks to end at S$12 on the same day. Shares of Seatrium, a shipbuilder for both the oil and gas and offshore wind sectors, decreased 3.3 per cent to head out at S$2.32.
Why doesn&rsquo t a surge in oil prices and the prospect of those prices staying elevated for a prolonged period translate into higher optimism for renewable energy players? Shouldn&rsquo t the burden of higher oil prices shift demand towards renewable energy alternatives?
A possible answer is that consumption demand and investment interest in renewable energy are driven by more than just oil prices, and it&rsquo s the multivariate complexity that makes it challenging to draw a clear relationship between oil prices and renewables.
For example, a 2024 working paper by researchers at the International Monetary Fund finds insufficient evidence to show that renewable adoption reduces the impact of fossil fuel price changes on energy inflation rates.
The inconclusive relationship could be a result of difficulties in controlling for national energy policies, threshold effects or trade linkage spillovers, the researchers explain. Whatever the reasons, the uncertainty reduces the confidence in renewable energy as a shield against oil price spikes.
Markets are also highly idiosyncratic, which means that tendencies in one geography can be irrelevant in others. A 2025 paper by Chinese and Spanish researchers finds mixed impact of energy-related uncertainty on US renewable energy demand.
On one hand, energy-related uncertainty spurs efforts to seek sustainable alternatives and accelerate renewable deployment, while greater renewable usage tends to reduce energy-related uncertainty. On the other hand, higher uncertainty about energy prices inhibits investment in renewables. But this study focuses on US data, and the findings may not apply to other markets.
Another study by South Korean researchers suggests that renewable energy consumption can mitigate the risk of oil prices, while higher oil prices can raise concerns about external risks and drive greater investments in renewable energy. But the research focuses only on oil-importing countries.
Those studies illustrate how challenging it can be to model with confidence how the current situation in the Middle East will affect sustainability players.
For a country like Singapore, which imports all of its fuel and relies heavily on natural gas for electricity, higher oil and gas prices could provide greater impetus to diversify the fuel and energy mix. But for a country like Indonesia, which has domestic supplies of oil and gas and coal, higher fossil fuel prices could drive greater investments into domestic extraction and energy activities.
Adjacent to the energy sector, in the transportation arena higher fossil fuel prices might not necessarily drive up demand for electric vehicles. In markets where electricity is primarily produced by fossil fuels, higher oil and gas prices could also raise electricity prices. Furthermore, immediate demand for electric vehicles is highly dependent on the level of access to charging infrastructure.
Probably the most significant impact from attacks in Iran is that it becomes more difficult to predict the future prospects for renewable players, which can chill investment interest. Without a good idea of how long the war might last, much less the objectives of the campaign, it&rsquo s difficult to use that as a decision input for assessing renewable investments, some of which can be long-term infrastructure projects.
What are sustainable investors to do in these times? Heightened short-term uncertainties could be a time to stick with higher-confidence long-term structural trends.
For instance, a rather popular thesis &ndash often used in scenario analyses as a potential future &ndash is that the inevitable physical impact of climate change and slow-to-act policymakers will drive increased disorderly transition risks. That scenario may not change much even if there is a war in the Middle East.
In fact, some of the potential beneficiaries of this long-term trend &ndash renewable energy players, infrastructure developers and green real estate players, for example &ndash could be bargain pick-ups in the current market turmoil.
(March 10): Singapore&rsquo s Sembcorp Industries Ltd is seeking a loan of around AUD3 billion (US$2.1 billion or $2.7 billion) to back its purchase of power generator and retailer Alinta Energy Pty Ltd, according to people familiar with the matter, adding to a growing wave of acquisition funding in Australia.
The loan for Sembcorp&rsquo s Australian unit will be split between an acquisition tranche &mdash with a tenor ranging from five to 10 years &mdash and a working capital portion, the people said, asking not to be identified discussing private matters. Goldman Sachs Group Inc and DBS Group Holdings Ltd are the joint financial advisers on the deal, which partially refinances a bridge facility of about AUD6.5 billion, people familiar said.
So this loan will help to settle SCI purchase of Alinta and boast future earnings ( esp now w global demand for power ) .
Certainly this is positive ( and definately NO need for any rumors of rights issue ) .
Why keep drawing a nice picture for retail traders?
Insiders know best if good yesterday all in liao, why still traded from high drop all the way to $5.66 then closed only 2c up.
$5 soon dyodd
Insiders know best if good yesterday all in liao, why still traded from high drop all the way to $5.66 then closed only 2c up.
$5 soon dyodd
Thank you for the useful article - worth 5 pointsExtracted from their presentation slide published on 11 Dec 25, there are no plans of equty raising.
ruanlai ( Date: 10-Mar-2026 15:33) Posted:
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Sembcorp seeking AUD3 bil loan to back purchase of Alinta ? Bloomberg
https://www.theedgesingapore.com/news/ma/sembcorp-seeking-aud3-bil-loan-back-purchase-alinta--bloomberg
https://www.theedgesingapore.com/news/ma/sembcorp-seeking-aud3-bil-loan-back-purchase-alinta--bloomberg
Checkerman ( Date: 10-Mar-2026 13:53) Posted:
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might see price fall below $5 if happened
ruanlai ( Date: 10-Mar-2026 13:00) Posted:
|
wah ... IF this Saturday Trump says mission accomplished, war over ... then 
Right issue otw ..... be careful.....
dyodd
dyodd