Sembcorp Industries Ltd

Ladies and gentlemen, good morning and welcome to SEMCorp Industries' full year 2024 results presentation. A warm welcome to viewers tuning in via the webcast. I'm Xin Jin from Group Corporate Communications and Investor Relations. Before we begin, we would like to request for all mobile phones to be turned off or switch to the silent mode. If you feel unwell, do approach our staff for assistance. Thank you. The members of the panel for today's results presentation are Group CEO, Mr Wong Kim In, and Group CFO, Mr Eugene Cheng. I will now hand over the time to Kim In to begin the presentation. Kim In, please.

Good morning and welcome to SEMCorp Industries' full year 2024 results briefing. I must first apologize for my attire. Everybody's wearing a jacket, but with the screen behind me, it's just too hot. So you have to put up with me. Otherwise, you know, I won't be as clear as I could be. So let's get into it. Yeah, I'm very underdressed. The group delivered a very resilient performance in 2024. Turnover was $6.4 billion, EBITDA $1.7 billion, adjusted EBITDA $2.1 billion, net profit before exceptional items $1.02 billion, surpassing the $1 billion mark for the second consecutive year. This is despite our Singapore Cold Generation Plant being shut down for close to two months for major maintenance and also a 34% decline in the Singapore wholesale power market price. EPS, earnings per share, before EI was 57.2 cents. Group return on equity before EI was 20.5%. This year we are proposing a final dividend of 17 cents bringing total dividend for the year to 23 cents per share. This is a 77% increase from the 13 cents in 2023 and implying a 40% payout ratio compared to 23% last year. The dividend yield of 3.9% is based on the closing price of $5.88 per share yesterday. In less than four years since our portfolio transformation, we have strengthened our key business segments, which have delivered resilient earnings and robust cash flows to the group. Our net profit before EI has more than tripled since 2020, with strong earnings predictability delivering a CAGR of 36%. This increase in dividend reflects our confidence in the company's future performance and our ability to generate sustainable returns. Let me take you through the key highlights of each of the business segments. Under Gas and Related Services, during the year we continued to proactively secure long-term power purchase agreements for our Singapore portfolio, enhancing earnings visibility. So as of end of 2024, 99% of our Singapore's gas-fired generation capacity is contracted. We now have the largest portfolio of long-term PPAs, with high-quality customers including Micron, Singtel, ST Telemedia, Equinix, GSK, for example. We are also a leading power provider to data centres, supplying over a third of the industry's energy needs. This contracted portfolio has provided earnings resilience, as validated by the strong contribution from this segment, despite the 34% decline in wholesale electricity price last year. In November last year, we completed the acquisition of a 30% interest in Senoko Energy from Onji for $96 million. Senoko Energy is one of the largest electricity suppliers in Singapore, operating around 2.6 GW of gas-fired generation capacity. Meanwhile, our 600 MW hydrogen-ready gas-fired power plant is on track for completion in 2026. With natural gas remaining critical for national energy security, we are strengthening our ability to meet Singapore's growing power needs, while supporting also the country's energy transition. In the renewable segment, we have added 4.1 GW of capacity to our portfolio during the year, bringing total group capacity to 17 GW. and tapping on our development expertise, we capitalized on the strong momentum in India's green fuel tenders, securing over two gigawatts of hybrid bits, including our first battery energy storage and solar project in the market. We have also successfully entered new markets. In Oman, Middle East, we delivered a 500 megawatt solar project more than four months ahead of its scheduled commercial operations date. we have completed our first utility scale integrated solar and energy storage project in Nusantara, Indonesia. And most recently, we marked our entry into the Philippines with a proposed acquisition of a 96 megawatt solar portfolio in January. We remain focused on achieving our target of 25 gigawatts gross installed renewables capacity by 2028. This chart tracks our growth in various markets over the past four years. We have expanded our renewables portfolio from 3GW to 17GW through more than 30 deals, maintaining strict discipline while avoiding mega acquisition risk. Our portfolio spans across growing Asian markets, enabling us to shift our focus between geographies based on market conditions. This can be shown through our recent successes in securing projects in India and other countries, even while the Chinese market has slowed. Our ability to execute differentiated strategy across different markets is key. For instance, our expertise in developing, constructing and operating wind projects has given us a winning edge in recent hybrid tenders. achieving higher tariffs compared to pure solar and wind projects in India. The markets that we operate in offer plenty of opportunities for growth and we will remain disciplined in assessing new investments. The integrated urban solutions segment delivered strong earnings growth following a turnaround in performance from the urban business. Higher land sales in Vietnam and Indonesia were the main drivers. Building on the momentum, we further strengthened our Vietnam-Singapore industrial park VSIP portfolio to 18 industrial parks now, with the addition of three new investment licenses. We also expanded our presence to Batam, Indonesia through a joint venture with Panbill Group, a prominent player in the industrial and hospitality sectors. During the year, We acquired land in multiple locations in Vietnam to develop industrial properties for lease and this is in line with our refresh strategy. This initiative expands our offering of high quality spaces and strengthens our recurring income stream. Our occupancy rates for completed industrial properties rose to 76% up from 47% in 2023. We continue to review our portfolio and sharpen our focus. In November 2024, we announced the sale of Semcorp Environment for a consideration of $405 million, which represents a 43% premium over its book value. We expect to record a gain of no less than $100 million for the sale. In summary, we are pleased with our performance and we will continue to focus on execution. The three growth engines, gas and related services, renewables and integrated urban solutions will drive SEMCorp's strategic plan towards 2028 and beyond.

Eugene, please take us through the financial review.