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4 Stocks This Week (Utilities) [4 October 2019] – Union Gas; Sembcorp Industries; Keppel Infrastructure Trust; Sanli Environmental

Electricity and gas tariffs for households to decrease this quarter. Here are 4 stocks that play a part in Singapore’s utility sector.


This week, it was announced that the electricity tariff for households will fall for October to December.

According to SP Group, with the lower cost of natural gas for electricity generation, the tariff will decrease by an average of 3.3%, or 0.79 cent per kilowatt hour (kWh) compared to Q3 2019.For households, the electricity tariff will decrease from 24.22 cents to 23.43 cents per kwh (before GST).

For those households that are still under SP group and have not switched to an OEM retailer, the average monthly electricity bill for families living in four-room HDB flats will decrease by $2.84.

Read Also:Biggest Reasons Why Singaporeans Haven’t Switched To An Open Electricity Market (OEM) Retailer – And Why They Really Should

Besides electricity, gas prices will also be decreasing, as tariffs for households will drop by 5.81 per cent and households will pay 17.99 cents per kWh instead of the previous 19.1 cents per kWh (before GST).

This means that households in Singapore can look forward to lower electricity and gas bills. This week, we look at 4 stocks from the utilites sector in Singapore.

Read Also: 9 Practical Ways To Save Money On Your Electricity Bill In Singapore – And Save The Earth At The Same Time

Union Gas Holdings Limited (SGX: 1F2)

Union Gas is a provider of fuel products in Singapore. Their business has 3 main segments: 1) Retail Liquefied Petroleum Gas (LPG) Business, 2) CNG Business and 3) Diesel Business.

Under the Retail LPG Business, Union Gas provides bottled LPG cylinders and also sell LPG-related accessories to domestic households in Singapore. Notably, more Singaporean households are using piped gas rather than LPG cylinders.

Union Gas operates a fuel station to produce, sell and distribute CNG to natural gas vehicles and industrial customers for commercial use. For its diesel business, the same fuel station also sells and distributes diesel to retail customers. Union Gas also transports, distributes and does bulk sale of diesel to commercial customers.

Union Gas was listed in July 2017, opening at $0.310. Last Friday, Union Gas closed lower at $0.245. In 2019, Union Gas paid out dividends of $0.015 per share, a slight increase from the $0.010 per share paid out in 2018.

Sembcorp Industries (SGX: U96)

Sembcorp Industries has three main businesses: 1) utility 2) marine and 3) urban development. Under its utility business, Sembcorp Industries provides utilities and integrated services for industrial sites. This includes services such as power, gas, steam, water, wastewater treatment and other on-site services.

The Marine segment provides integrated solutions for the offshore and marine industry. For its urban development business segment, Sembcorp Industries owns, develops and manages integrated urban developments such as industrial parks, commercial and residential spaces.

Sembcorp Industries has been consistently paying out dividends every year since 2002. This 2019, similar to 2018, shareholders of sembcorp will receive a total of $0.04 in dividends per share.

Sembcorp has been listed since 1998, when it opened at $1.187. Since its inception, Sembcorp Industries has seen lows of $0.712 in 2002 and highs of $6.824 in 2008. Last Friday, Sembcorp Industries closed at $2.060.

Keppel Infrastructure Trust (SGX: A7RU)

Keppel Infrastructure Trust is a business trust listed on the SGX since 2007.

Kep Infra Trust’s key segments include energy, distribution and network, and water and waste related infrastructure. As a business trust, Kep Infra Trust has a diverse portfolio of core infrastructure businesses that range from waste treatment, water production, power production and transmission, to piped gas production retailing and telecommunications.

Since 2016, Keppel Infra Trust has been consistently paying out dividends. In 2018, shareholders received $0.037 per share in dividends. This 2019, shareholders will receive at least $0.028 per share in dividends.

Keppel Infra Trust opened at $0.957 when it listed in 2007. In 2012, Keppel Infra Trust saw lows of $0.283. Last Friday, Keppel Infra Trust closed higher at $0.535.

Read Also: Should You Invest In A Stock That Has Just Announced Special Dividends?

Sanli Environmental Ltd (SGX: 1E3)

Sanli Env is an environmental engineering company with over 10 years in water and waste management. Their main business segments include: 1) Engineering, Procurement and Construction and 2) Operations and Maintenance.

Under the first business segment, Sanli Env focuses on water management and waste management. Water management refers to the treatment of raw and used water; while waste management refers to the treatment of refuse in incineration plants.

Under the operations and maintenance business segment, Sanli Env provides operations and maintenance services for the equipment used in water and waste management infrastructure.

Waste management is a growing sector in Singapore, especially with the increasing focus on environmental issues in recent years. One of Sanli Env’s major customers is PUB, Singapore’s national water agency. This 2019, Sanli Env clinched $51.5 million of contracts from PUB.

Sanli Env was listed in 2017, where it opened at $0.400 which was almost double its IPO price of $0.225. Since its inception, Sanli Env has been on a downward trend, closing lower at $0.165 last Friday.

Read Also: Complete Guide To Choosing The Best Open Electricity Market (OEM) Plan For Your Home

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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.