As a major institutional investor, Temasek maintains significant ownership positions in several of Singapore's premier publicly listed corporations.
In a prior analysis of this influential investor's portfolio, we reviewed the financial results and dividend prospects of three key holdings: DBS Group Holdings Ltd (SGX: D05), Singapore Telecommunications Ltd (SGX: Z74), and Singapore Technologies Engineering Ltd (SGX: S63).
However, Temasek's investment reach extends far beyond these three companies.
This examination will introduce and evaluate the next three corporate giants in its portfolio.
As we incorporate these additional major holdings into the discussion, a key insight for income-focused investors becomes apparent: surface-level profit figures often fail to reveal the complete financial picture.
Which firm presented the most compelling argument for its dividend?
Sembcorp Industries (SGX: U96) is a provider of energy and urban solutions with operations spanning Singapore, India, China, the United Kingdom, Vietnam, and the Middle East.
Temasek Holdings holds a 50% stake, valued at approximately S$5.9 billion against a market capitalisation of S$11.8 billion as of 31 March 2026.
Revenue for FY2025 declined by 10% year-on-year to S$5.8 billion.
The decrease in the top line was attributed to lower electricity offtake, softer pool and gas prices in Singapore, weaker plant availability in the UK, and the absence of its divested waste management business.
Increased contributions from the renewables segment, aided by new capacity in Singapore, India, and the Middle East, partially offset the overall decline.
Net profit attributable to owners dipped 3% to S$984 million.
Excluding exceptional items and foreign exchange movements on the deferred payment note, profit was S$1.0 billion, remaining largely flat compared to the previous year.
The cash flow narrative is more positive.
Free cash flow turned positive to S$208 million, a swing from a negative S$196 million the year before, as capital expenditure moderated.
This improvement provided the group with the flexibility to increase its ordinary dividend for FY2025 by 9% to S$0.25.
The pending acquisition of Alinta Energy is anticipated to broaden the earnings base upon completion, which is expected by the end of the first half of 2026.
However, the outlook is not without challenges.
Management anticipates thinner margins in its Gas and Related Services segment due to re-contracting in Singapore, while contributions from renewables in China may face pressures from curtailment and tariffs.
Is Another Dividend Doubling in the Cards for Seatrium?
Seatrium Ltd (SGX: 5E2) offers engineering services to the global offshore, marine, and energy sectors, operating in 20 countries.
Temasek Holdings holds a 36% stake in the company, valued at approximately S$2.9 billion, based on a market capitalisation of S$8 billion as of 31 March 2026.
The company reported robust financial results for the 2025 fiscal year.
Revenue increased by 24.3% year-on-year to S$11.5 billion, driven by effective project delivery and achieving key production targets.
Profit attributable to shareholders surged to S$323.6 million, more than double the S$156.8 million recorded in the prior year.
This improvement was supported by greater revenue recognition, reduced overhead expenses, a higher share of profits from associates, and lower net finance costs.
Seatrium Ltd proposed a final dividend of S$0.03 per share, which is double the S$0.015 per share paid the previous year, although no special dividend was announced.
While this represents genuine dividend growth, the underlying cash position supporting these payments remains relatively weak.
Free cash flow improved to a positive S$19.7 million, compared to a negative S$4.3 million in the prior period.
The company's balance sheet shows net debt, with cash holdings of S$1.8 billion against borrowings of S$2.5 billion, resulting in net debt of S$680.0 million.
In total, the group has access to S$3.1 billion in cash and undrawn committed credit facilities.
Seatrium Ltd maintains a substantial order book of S$17.8 billion, but the significant potential for future growth lies ahead.
Over the coming 24 months, management is targeting a pipeline of new opportunities exceeding S$32 billion, spanning key areas such as oil and gas, offshore wind, and conversion projects.
Why did Singapore Airlines reduce its dividend payout following a record revenue year?
Singapore Airlines Ltd (SGX: C6L) operates under a dual-brand strategy encompassing the full-service SIA and the low-cost Scoot carrier, alongside an engineering division and a 25% ownership stake in Air India.
Temasek Holdings holds a 50% stake in the company, valued at approximately S$10.4 billion against a market capitalisation of S$20.8 billion as of 31 March 2026.
The airline's share price declined by 1% to S$6.77 after its net profit for the fiscal year ending 31 March 2026 fell by 57.4% year-on-year to S$1.2 billion.
However, this headline figure obscures what was otherwise a robust operational performance.
Revenue reached a historic high of S$20.5 billion, marking a 5.0% increase, as SIA and Scoot collectively transported a record 42.4 million passengers. This pushed the passenger load factor up by 1.1 percentage points to 87.7%.
Consequently, operating profit jumped 39.0% to S$2.4 billion, supported by lower net fuel expenses and increased gains from hedging activities.
This raises the question: why did the overall profit decline?
Firstly, the group recognised a non-recurring S$1.1 billion gain from the disposal of Vistara in the prior fiscal year.
Secondly, it accounted for S$828.5 million in losses attributable to its shareholding in Air India.
Despite these accounting-related challenges, the company's financial position remains solid. Free cash flow was reported at S$2.5 billion, and SIA held S$7.9 billion in cash against S$7.7 billion in borrowings.
The dividend declaration reflects this moderated financial outcome.
SIA announced a final ordinary dividend of S$0.22 per share and a separate final special dividend of S$0.07 per share.
Including interim distributions, the total dividend for FY2025/2026 amounted to S$0.37 per share, down from S$0.40 per share in the previous year.
Looking forward, company management has identified jet fuel costs as a primary challenge.
Prices have more than doubled since the onset of conflict in the Middle East. Due to the lagged effect in SIA's fuel cost pricing mechanism, the full impact is anticipated to be felt in the FY2026/2027 period.
To date, increases in airfares have been insufficient to completely cover this escalating expense.
Investors should look beyond the surface-level figures to understand the full picture
Although these three firms are all backed by the same major institutional shareholder, their individual dividend narratives are quite distinct.
Sembcorp Ind increased its distribution to shareholders, supported by the generation of positive free cash flow.
In a different move, Seatrium Ltd opted to double its dividend payment, even though the underlying cash generation is modest and the company's balance sheet shows net debt.
Conversely, SIA decided to reduce its dividend payout despite achieving record revenue, as its reported profit was affected by a one-time gain from the previous year and losses associated with its investment in Air India.
This serves as a timeless reminder for those focused on income: an increase in profits does not automatically lead to a higher dividend, and a decline in profits does not necessarily indicate a deteriorating business.
The fundamental driver for sustainable dividend payments continues to be the company's free cash flow.
The key takeaway is to analyze the cash flow statements, delve deeper than the headline profit numbers, and evaluate each investment based on its own specific financial health and prospects.
Building a retirement portfolio is a gradual process, shaped by numerous individual investment choices over time.
Our research has identified six companies listed on the Singapore Exchange that have demonstrated remarkable dividend consistency, maintaining payments every single year for over two decades, navigating through events like the Global Financial Crisis, the COVID-19 pandemic, and periods of rising interest rates.
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