Singapore Power Tariffs Put Sembcorp Stock In Focus

Singapore inflation has crept higher again, with utilities, transport and everyday essentials pulling more weight in the latest CPI basket. Rising electricity tariffs in particular are reshaping cost pressures across the economy, which can hurt some companies yet improve pricing power for others. This article walks through three Singapore utilities and energy infrastructure stocks that are exposed to these tariff moves so you can judge whether they fit your watchlist or not.

The three stocks below are just a first sample from this idea, and the full screen surfaced 22 more Singapore utilities and energy infrastructure companies with equally compelling narratives that are not covered here. If you want to go straight to the source and identify your own tariff beneficiaries, head into the Singapore Utilities & Energy Infrastructure Beneficiaries of Rising Power Tariffs screener.

Sembcorp Industries (SGX:U96)

Overview: Sembcorp Industries is a major Singapore utilities and energy infrastructure company that sells power, gas, steam and water, while also building and operating renewable energy, urban and industrial solutions across Asia, the UK and the Middle East. Its mix of gas fired generation, renewables and grid linked services means it can be closely tied to shifts in electricity tariffs and long term demand for reliable power.

Operations: Sembcorp generates most of its revenue from Gas and Related Services at about S$4.6b and Renewables at about S$935 million, with Integrated Urban Solutions, Decarbonisation Solutions and Other Businesses contributing smaller amounts, and Singapore accounting for roughly S$4.7b of reported revenue alongside diversified exposure to the UK, India and China.

Market Cap: S$10.8b

Rising Singapore electricity tariffs and higher wholesale prices put Sembcorp Industries firmly in focus, since its gas fired generation and retail power activities are directly exposed to power pricing while its growing renewables and urban solutions platforms tap long term energy and infrastructure demand. A P/E that sits slightly below the integrated utilities average and revenue growth forecasts above the wider market indicate investors are paying a reasonable price for that exposure, although recent margin compression and a 1H 2026 profit that was lower than the prior year show earnings can be volatile. Together with a 4.17% dividend yield that is not fully backed by free cash flow and meaningful debt funding, this creates a profile where tariff upside and infrastructure scale are balanced by questions on cash generation and interest costs that merit closer examination.

Tariff sensitive earnings, combined with a slightly below average P/E, put Sembcorp Industries in an interesting spot for investors who care about both pricing power and balance sheet pressure. Get the full picture in the 2 key rewards and 3 important warning signs (1 is major!)

Union Gas Holdings (SGX:1F2)

Overview: Union Gas Holdings runs a fuel distribution business that supplies LPG, LNG, CNG, diesel and petrol to households, commercial users and vehicles in Singapore and Indonesia. This links it closely to shifts in energy prices and tariffs. It also provides related equipment and services, plus electric vehicle charging and industrial gases, giving it a broader foothold across everyday energy usage.

Operations: Union Gas Holdings generates most of its revenue from Gas Fuel at about S$106.7 million and Liquid Fuel at about S$72.5 million, with smaller contributions from Other operations, almost entirely in Singapore.

Market Cap: S$152.3 million

Union Gas Holdings provides exposure to the theme of rising power and fuel costs through its ability to distribute LPG, LNG, CNG and liquid fuels, where higher tariffs can often be passed through to end users. The company has recently reported HY2026 revenue of S$105.95 million and net income of S$12.02 million, supported by its expanding Cnergy service station network, and currently reports a 20.3% ROE with profit margins of 10.1%. At the same time, a history of earnings pressure over five years, an unstable dividend record and a funding structure that leans entirely on external borrowing mean investors need to weigh tariff pass through potential against balance sheet risk and the impact of higher interest rates.

Union Gas Holdings combines tariff pass-through capabilities with a fully debt-funded balance sheet, which can obscure how resilient its cash engine really is. See the 2 key rewards and 2 important warning signs (1 is major!)

Khen Energy (Catalist:YSV)

Overview: Khen Energy is a Singapore based pure play power producer that owns and leases hydropower generation assets in Sri Lanka and sells the resulting electricity and related power generation services. The company also has supporting activities in ship owning, chartering and accommodation modules, but its main appeal in this screener is direct exposure to regulated power tariffs and energy prices in its core markets.

Operations: Khen Energy currently reports all of its S$5.144 million in revenue from the sale of renewable energy generation in Sri Lanka.

Market Cap: S$21.9 million

Rising utilities inflation and higher electricity tariffs put Khen Energy on the radar because it already earns revenue from selling hydroelectric power into Sri Lanka, which links its fortunes closely to how regulators and off takers price that output. At the same time, the most recent half year results showed sales of US$2.26 million and net income of only US$0.108 million, a sharp fall from the prior period that highlights how fragile earnings can be when volumes, tariffs or costs move against it. A 17.5% profit margin, a relatively low 7% ROE and reliance on higher risk borrowing mean any benefit from stronger tariffs needs to be weighed against funding pressure, high non cash earnings and a still evolving board and management bench. For investors who want direct exposure to power markets rather than diversified utilities, Khen Energy offers a focused but higher risk way to gain exposure to rising energy prices that warrants a closer look at how durable those cash flows really are.

Hydropower earnings that move with regulated tariffs can make Khen Energy look like a straightforward utilities idea; however, its funding mix and margin profile tell a more complicated story. Read the analysis report for Khen Energy

Seeking Alternatives Before The Crowd?

Fresh ideas tend to move first when momentum builds and weaker stories start dropping. Avoid reacting only after prices have already moved. Scan these under the radar picks and consider your options.

• Identify cash rich businesses that still trade as if they are overlooked by using the curated 268 high quality undervalued stocks while market attention is elsewhere.
• Explore structural trends in automation and AI hardware by reviewing the hand picked 39 power grid technology and infrastructure stocks before the next infrastructure move gathers full steam.
• Focus on companies with balance sheets that may be more resilient to shocks by checking the carefully filtered 291 resilient stocks with low risk scores while the window for calmer compounding remains available.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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