Sembcorp turns its portfolio towards a “greener future”

The company will bank on renewable energy demand after incurring a net loss in 2020.

Sembcorp Industries plans to transform its portfolio towards a “greener future,” as it pushes to provide renewables and sustainable urban solutions acoss its businesses.

The company incurred a net loss of $997m in 2020, even as its energy businesses remained resilient.

It attributed the loss to its non-cash, non-recurring fair value loss of $970m recorded following the completion of the distribution of the in-specie of ordinary shares in the capital of Sembcorp Marine.

It also incurred a net loss of $184m for its Marine business, amongst other items that recorded negative growth during the year.

“Notwithstanding the adverse business conditions, the Group continued to gain momentum in renewables growth and deepened our presence in key markets,” Chairman Ang Kong Hua and CEO Wong Kim Yin said in a joint statement.

The Group grew its global renewables portfolio to over 3,200 MW in 2020, including the 60 MWp inland floating solar photovoltaic system in Singapore. It has also completed its divestments in Chile, China and Panama.

“Looking forward, the path to a post-COVID world remains unclear. Yet the megatrends of decarbonisation, urbanisation and electrification are clearly here to stay,” the company said.

Sembcorp, which is one of Singapore’s largest, home-grown renewable energy players, aims to be the regional front runner.

It also has about 280 MWp of solar capacity in Singapore. It also has 13 projects across Vietnam, China and Indonesia.

On top of this, the company has attracted $51.1b (US$41b) in direct investments in developing economic engines in partnership with other governments.

By leveraging synergies across our businesses, we can provide solutions focused on meeting the twin goals of clean energy and sustainable urbanisation in Asia,” the statement also read.