Is Sembcorp worth sustainable investing?

mchongmy
2022-05-31

Singapore's $SEMBCORP INDUSTRIES LTD(U96.SI)$ solar farm is expected to produce about 22,025 MW hours of power annually, which is exported to Singapore's national power grid. This will help to avoid approximately 9,000 tonnes of carbon dioxide emissions a year, which is equivalent to planting almost 150,000 trees. Covering almost 10 hectares of temporary vacant land with over 33,500 solar panels installed, the new solar farm at Tuas industrial estate can power about 4,700 4-room Housing Board (HDB) flats a year.

The interest rate of the loan facility will be subject to a step-up margin if Sembcorp does not cut greenhouse gas emissions intensity to 0.40 tonne of carbon dioxide equivalent per megawatt hour or less by end-2025, and achieve gross installed renewable energy capacity of 10 GW.

Sembcorp last reported emissions intensity of 0.51 tonne of carbon dioxide equivalent per megawatt hour and gross installed renewable energy capacity of 2.75 GW in 2021.

With companies globally striving to cut down greenhouse gas emissions in order to avoid paying carbon tax, how would sustainable investing look like a few years down the road? 

If you wish to leverage on this, consider using DLCs,

$Sembcorp 5xLongSG250515(DFKW.SI)$ 

$Sembcorp 5xShortSG250515(DGMW.SI)$ 


 


Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • LeonaClemens
    2022-05-31
    LeonaClemens
    Looks like share price of SEMBCORP is rising now.
    • Bodoh
      Looks can be deceiving no?
  • CaesarHicks
    2022-05-31
    CaesarHicks
    I think it's worth to buy with a lower price, not now.
  • Maky
    2022-05-31
    Maky
    Thanks for sharing. Hopefully Sembcorp Industries Ltd venture overseas to give better returns
  • Jason1616
    2022-05-31
    Jason1616
    Singapore is a small market share. Limited upside.
  • Joshua_sg
    2022-05-31
    Joshua_sg

    Thanks for sharing 

  • Bodoh
    2022-05-31
    Bodoh
    I think we can make 3 comments here
    • Bodoh
      Nope not possible
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