Aug 6 (Reuters) - Singapore's Sembcorp Industries (SCIL.SI) , opens new tab on Tuesday forecast its annual net profit to be "fairly stable" as higher earnings from its gas and related services segment are likely to offset lower contribution from the renewables division.

Earnings from renewables business are expected to fall in the second half of 2024, the utilities company backed by state-owned investor Temasek Holdings said, flagging that the decline was due to a seasonality reason.

China's weak macro-economic situation and financial downturn could also negatively affect demand for renewable energy, the Singapore-based energy producer said.

Still, completion of a planned maintenance for the co-generation plant in Singapore is expected to support earnings growth for the operations.

Sembcorp also proposed an interim dividend of 6 Singapore cents per share, compared with 5 cents in the year-earlier period.

"Macroeconomic uncertainty remains and geopolitical tensions, as well as potential policy changes could impact the global economy and impact business performance," Sembcorp said.

The firm's attributable profit from continuing operations for the six-month period ended June 30 came in at S$540 million ($407.76 million), compared with S$608 million a year earlier.

($1 = 1.3248 Singapore dollars)

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https://www.reuters.com/business/energy/singapores-sembcorp-posts-11-drop-half-yearly-profit-2024-08-05/