Sembcorp Industries' 1H result is likely to be weighed by the Middle East conflict driving up energy prices and a challenging operating environment in India, says Citi analyst Luis Hilado in a note. The U.S.-Iran conflict pushed upstream gas suppliers to raise prices, resulting in margin pressure for the Singapore energy and urban solutions provider, he says. Weather disruption and currency weakness are also dragging down Sembcorp's renewables business in India, he says. He cuts his 2026-2028 recurring and reported profit projections by 6%-11% and 10%-14%, respectively. Citi adds a negative 30-day catalyst watch on Sembcorp's shares and cuts its target price to 6.92 Singapore dollars from S$7.02. It retains its buy rating. Shares drop 3.7% to S$5.96. (megan.cheah@wsj.com)
Dow Jones Newswires
Sembcorp's 1H Result Likely Weighed by Energy Shock, Other Challenges — Market Talk
Sembcorp Industries' 1H result is likely to be weighed by the Middle East conflict driving up energy prices and a challenging operating environment in India, says Citi analyst Luis Hilado in a note. The U.S.-Iran conflict pushed upstream gas suppliers to raise prices, resulting in margin pressure f…