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(31-03-2012, 04:07 PM)yogi Wrote: [ -> ]Management focus is on generating stable and recurring profit. Its likely that they may want to launch Investment Trust around utility business. Not many Trust on SGX focusing on utility business.

For last few years, div payout ratio remains around 30-40%. In next 3-4 years its heavy investments (in last 2-3 years) in utilities would generate recurring profit. These are two drivers for strong upside in dividend in next few years.

The Changi NEWater plant is coming online soon........Smile
Sembcorp Industries, the biggest utility in Southeast Asia, formally opened its US$1 billion ($1.26 billion) Salalah water and power plant in Oman.

The Singapore-based company’s facility consists of a gas- fired power plant and a seawater desalination plant, the largest of its kind in Dhofar, Sembcorp said in a statement. The utility’s first facility in Oman, it will provide water and power under a 15-year purchase agreement with the state.

[Image: Salalah%20plant%20p23.png]
SINGAPORE, May 31, 2013 – Sembcorp Industries (Sembcorp) is pleased to announce that its 1,200-megawatt power project in central Vietnam has been awarded approval by the Vietnamese government to be included in the country’s national power development plan for the 2011-2020 period with the vision towards 2030 (Power Master Plan VII). Its wholly-owned subsidiary, Sembcorp Utilities, was appointed by the Vietnamese government to be the owner and developer of this power project under a build-operate-transfer arrangement.
Plant coming online doesnt 100% mean that the new plant will contribute meaningfully to the overall revenue and profit/margin.

Just look at Hyflux new desal plant slated to come online these few months. It is selling desalinated water at much cheaper rate than PUB.

Is it losing money? We also need to ask at which capacity these new plants are running at? Idling at 10% capacity will not bring in much revenue.

Sometimes the new plant could just be a strategic play to gain foothold in certain sector. The plant might be losing money every single month once it is commissioned and becomes operational.

Each new plant is unique in its own right Smile

(31-05-2013, 08:14 AM)Dividend Warrior Wrote: [ -> ]
(31-03-2012, 04:07 PM)yogi Wrote: [ -> ]Management focus is on generating stable and recurring profit. Its likely that they may want to launch Investment Trust around utility business. Not many Trust on SGX focusing on utility business.

For last few years, div payout ratio remains around 30-40%. In next 3-4 years its heavy investments (in last 2-3 years) in utilities would generate recurring profit. These are two drivers for strong upside in dividend in next few years.

The Changi NEWater plant is coming online soon........Smile
Sembcorp should go back to its oil refining and oil distributing buisiness as well
the capex is currently huge. by no means are they generating the kind of free cash flow we are expecting.
Water utilities are amongst the most capital intensive sector we can find on our globe. With so many competitors like Hyflux and Keppel, hard to make good money...
Singapore, June 7, 2013 – Following the article “Sembcorp plans IPO of water, power JV in Oman” published in The Business Times on June 7, 2013, Sembcorp Industries (Sembcorp) wishes to confirm that the eventual initial public offering (IPO) of the Sembcorp Salalah Power and Water Company (Sembcorp Salalah) was one of the requirements for bidders for the Salalah Independent Water and Power Plant project, as stipulated in the Project Documents.
Under the Project Documents, Sembcorp Salalah is required, amongst other things, to undertake an IPO on the Muscat Securities Market within four years from its incorporation in 2009. The terms and exact timeline for the IPO are still under discussion and are not confirmed.
The Company intends to issue an announcement to update the market as and when it is appropriate upon finalisation of these details. In the meantime, shareholders are advised to exercise caution when trading in the Company’s shares.

when is our dear govt gg to ipo changi airport so that its citizens can also enjoy the fruits?
Shenyang, CHINA, August 30, 2013 – Singapore Prime Minister Lee Hsien Loong visited Sembcorp’s municipal water plant in Shenyang today whilst in China at the invitation of Chinese Premier Li Keqiang. Prime Minister Lee was accompanied by his wife, Acting Minister for Manpower and Senior Minister of State for National Development Tan Chuan-Jin, Vice Governor of Liaoning Bing Zhigang, Singapore Ambassador to the People’s Republic of China Stanley Loh and his wife, as well as other officials from China and Singapore. The delegation was welcomed by Mr Alan Yau, CEO of Sembcorp China and Mr Yang Haidong, Sembcorp China’s Head of Asset Management for Northeast China.
PM Lee was briefed on Sembcorp’s presence in China, as well as on Sembcorp’s water treatment plant in Shenyang, which supplies 160,000 cubic metres per day of municipal water to a population of 175,000 in the Shenyang Economic & Technological Development Area. In 2012, the facility was the only one in China to be singled out for operational excellence by AquaFed – the international federation of private water operators – at the World Water Forum. AquaFed highlighted Sembcorp’s success in improving the operational and financial performance of the plant, such as reducing non-revenue water as well as energy consumption per unit of production.
This visit comes on the back of Sembcorp’s new deals to expand its wastewater treatment business in Liaoning, signed two days ago at the sidelines of the annual Singapore-Liaoning Economic and Trade Council meeting. Witnessed by Minister Tan Chuan-Jin and Executive Vice Governor of Liaoning Zhou Zhongxuan, the deals extend Sembcorp’s water solutions to industrial sites in Panjin, and will support the government in its efforts to accelerate the economic development of Liaoning under the “Liaoning Coastal Economic Belt Strategy”. They will also build Sembcorp’s presence in its key market of China, which currently spans 15 provinces across the country.
http://www.sembcorp.com/en/src/downloads...SGXNet.pdf


Anyone vested in this?

What do you all think?
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