Sembcorp Industries to boost cogen plant capacity by 400MW

But it warns of intensified competition in Singapore.

According to Maybank Kim Eng, SCI would add new capacity of 400MW to its cogen plant by Dec 2013. However it warns that with the completion of the LNG terminal in 2013 and addition of

2,400MW of new power generation capacity in Singapore over 2013 and 2014 would intensify competition, resulting in lower power prices.

Here's more from Maybank Kim Eng:

We thus expect at more moderate FY13F Utilities net margin of 6.3% (vs 7.2% for 1Q13) for the Utilities segment The long term value in SCI is the pipeline of utilities projects, scheduled to come onstream over 2013-2016.

These are progressing well and would add to its recurring revenue base, lending more stability to its income stream.