Singapore, Feb 2, 2026, 15:38 SGT — Regular session
- Sembcorp shares slipped in mid-afternoon trading following a turbulent week driven by deal rumors
- Investors are balancing Micron’s power-supply expansion with the looming Alinta acquisition process
- Focus shifts to upcoming regulatory milestones and Sembcorp’s FY2025 earnings set for later this month
Sembcorp Industries Ltd SGX:U96 shares dipped 0.8% to S$5.98 by mid-afternoon Monday, after moving within a range of S$5.96 to S$6.09. The stock had climbed 3.6% on Jan. 29 but dropped 1.6% to close Friday at S$6.03.
This shift matters as investors juggle two narratives simultaneously: a long-term power contract extension linked to semiconductor demand, and a major overseas acquisition awaiting regulatory approval. Earnings are the next key milestone, with the report looming close.
The wider environment hasn’t been kind. Risk appetite waned across Asia following sharp declines in precious metals and slipping oil prices, unsettling markets, Reuters reported.
On Jan. 28, Sembcorp announced it had reached key terms to expand an 18-year power purchase agreement (PPA) with a Micron Technology unit, boosting supply by 150 megawatts while maintaining the contract through 2041. The company said this extension is not expected to materially affect FY2026 earnings per share or net tangible assets per share, which excludes intangible assets from the balance sheet.
Alinta Energy is another key factor. A Singapore Exchange filing revealed shareholders greenlit the acquisition at a Jan. 30 extraordinary general meeting, with 99.76% voting yes. Still, final approval hinges on other conditions. According to Sembcorp’s website, the deal is expected to close in the first half of 2026, pending regulatory sign-off and usual closing steps. The Business Times noted the transaction includes a coal-fired plant that supplies roughly 20% of Victoria’s electricity.
Earlier, Citi Research analyst Luis Hilado called the acquisition “half-full” and “half-empty,” highlighting possible earnings gains but also setbacks to decarbonisation goals. The Business Times
Sembcorp has kept expectations tempered regarding near-term gains from the Micron expansion, possibly prompting investors to sell off quickly. Now, focus shifts to the earnings outlook and any details on execution risk tied to the acquisition as the next key drivers.
Still, it can backfire. Delays in regulatory approval, tighter funding conditions, or increased scrutiny on coal-related emissions might push the company’s upcoming results and guidance higher than expected.
Sembcorp plans to publish its FY2025 financial results on Feb. 25 before the market opens, according to a Singapore Exchange filing. Investors are keen on any guidance the company provides, especially updates on the Alinta approval timeline.
Related articles: SGX:U96
