Singapore is home to the world’s busiest port, so it’s no surprise that Sembcorp Industries and Sembcorps’s global marine engineering arm Sembcorp Marine have grown to become so big.
Sembcorp Industries’ activities include ship building and repair, energy supply, waste management and developing industrial parks. As for Sembcorp Marine, it converts and services ships in Singapore and overseas, and now operates eight shipyards in Singapore and elsewhere.
Thinking of investing in the company? Read on to find out more.
Disclaimer: This article contains information on Sembcorp Industries and Sembcorp Marine share prices as well as the company’s recent performance trends. It is meant as a guide for readers only, not financial advice. Please practise your own discretion when making investment decisions.
Sembcorp Ind (U96) and Sembcorp Marine (S51) overview
|Sembcorp Ind (U96)||Sembcorp Marine (S51)|
|Sector||Utilities, Multiline Utilities||Industrial goods, shipbuilding|
|Year of incorporation||1998||1963|
|Total Market Cap||$2,877.95 million||$1,515.91 million|
|Historical share price||Consistently above $2 until Covid-19 sent prices to a low of $1.48||Consistently above $1 until Covid-19 sent prices to a low of $0.615|
|Current share price||$1.63||$0.73|
|Current dividend yield||2.484%||–|
|Dividend yield 5-year average||2.398%||–|
Note: The figures are accurate at the time of writing (Apr 2020), but due to the nature of this industry, this information changes very frequently. For the latest updates, do check the Sembcorp Ind (U96) and Sembcorp Marine (S51) SGX listings.
Sembcorp Ind (U96) and Sembcorp Marine (S51) stock profile: Share prices, dividends and more
Sembcorp Industries and Sembcorp Marine have a market capitalisation of $2,877.95 billion and $1,515.91 billion respectively. Sembcorp Ind is a constituent of the Straits Times Index, the Dow Jones Sustainability Asia Pacific Index and the SGX Sustainability Leaders Index, amongst others.
Over the past five years, both Sembcorp Ind and Sembcorp Marine have seen their share prices fall from highs in 2015 to stabilise and then slowly decline from 2018 to 2020. In the past year, Sembcorp Ind shares have gone from over $2 to a low of $1.48 after Covid-19 hit. For Sembcorp Marine, prices have gone from over $1.50 to a low of $0.615.
Sembcorp Ind’s lacklustre dividend yield of 2.484% is a reflection of a more disturbing trend of falling dividends over the last five years.
About Sembcorp Ind (U96) and Sembcorp Marine (S51): Market news and updates
Sembcorp Industries, which was incorporated in 1998, participates in three types of business that are considered essential in Singapore. Its marine activities, including ship repairs and marine engineering, are indispensable in Singapore, the world’s busiest port.
Their other activities, waste management and energy supply, are likewise essential services as the waste created by Singaporean businesses and households needs to be disposed of no matter what, and we likewise rely on power plants and other power generation facilities for energy. In total, they employ over 16,000 people.
Sembcorp Marine was incorporated in 1963 and handles Sembcorp’s marine activities. While their main activity is ship repairs and upgrades, they are also in the business of rigs and floaters, offshore platforms and specialised shipbuilding. They operate shipyards and facilities not only in Singapore but also in Indonesia, the UK, Norway and Brazil and employ over 10,000 people.
Both Sembcorp Industries and Sembcorp Marine have Temasek Holdings as their biggest shareholder, at 49.47% and 60.98% respectively.
Despite the fact that their services are indispensable, both companies have been having a tough time over the last five years.
The decline in Sembcorp Ind and Sembcorp Marine’s share prices since 2015 can be partly explained by a decline in the marine and offshore industries, as well as the fall in oil prices. Covid-19 will no doubt exacerbate this due to the slowdown in trade.
While investors are swooping in now to pick up shares at bargain basement prices during the Covid-19 epidemic, Sembcorp’s problems started way before the virus hit. So, those praying for their Sembcorp share prices to rebound might have a long and uncertain road ahead.
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