Sembcorp Industries Ltd (U96.SI) saw its stock price plummet by 14% in early trading on Friday, following the release of its half-yearly financial results. The significant drop comes as the company reported a marginal decline in its net profit, despite showing strength in its renewables division.

The Singapore-based utility company announced a net profit of S$536 million ($418.00 million) for the six-month period ended June 30, slightly lower than the S$543 million reported a year ago. This decline was primarily attributed to a dip in earnings contribution from its gas and related services segment. However, the company's renewables division demonstrated a notable jump in bottom-line performance, partially offsetting the overall profit decrease.

Despite the profit dip, Sembcorp Industries reported a half-year turnover of SGD 2,942 million and announced an interim dividend of 9.0 SG cents per share. The company also stated its expectation to maintain a sustainable dividend payout for the fiscal year 2025. However, these positive aspects seem to have been overshadowed by the profit decline, leading to the sharp stock price drop as investors reassess the company's near-term growth prospects.