Ladies and gentlemen, good morning and welcome to Sembcorp Industries Full Year 2022 results presentation. A warm welcome too to viewers tuning in via the webcast. I'm Xin Jin from Group Investor Relations. Before we begin, we would like to request for all mobile phones to be turned off or switched to the silent mode. If you feel unwell, do approach our staff for assistance. Thank you. The members of the panel for today's presentation are Group President and CEO, Mr. Wong Kim Yin, and Group CFO, Mr. Eugene Cheng. There will be a Q&A session after the presentation. For viewers of the webcast, please key in your questions in the Q&A box by clicking on the raise hand icon on the webcast page. Without further delay, I will now hand over the time to Kim Yin to begin the presentation. Kim Yin, please.
Good morning. Very happy to see all of you. Very familiar faces, old friends. Welcome to Sembcorp Industries Full Year 2022 results briefing. The group delivered a strong set of results for 2022 amidst a volatile market. Turnover was SGD 9.4 billion, 21% higher year-on-year. EBITDA and Adjusted EBITDA was SGD 1.7 net profit before Exceptional Items was sgd 883 million. this is an increase of 87%. Net Profit was SGD 848 million. Earnings Per Share, SGD 0.476. Earnings Per Share before extraordinary items was SGD 0.495. Group ROE was 21.9% and group ROE before EI was 22.7%. The financial figures mentioned include discontinued operations. This is for easy comparison against last year's results.
This will be different from the financial statements at Sembcorp Energy India Limited or SEIL. This has been classified as discontinued operation and deconsolidated. Given the group's strong operational results, the board is proposing a final dividend of SGD 0.04 and a special dividend of SGD 0.04 per ordinary share for FY2022. Together with the interim dividend of SGD 0.04 paid in August 2022, this will bring our total dividend for the year to SGD 0.12 per ordinary share. This is an increase of 140% from the SGD 0.05 in 2021. During the year, we have made significant progress against our strategic goals. Our renewables portfolio grew significantly with a 60% year-on-year increase in capacity to 9.8 gigawatts. This is through organic growth as well as acquisitions.
We also successfully commissioned Southeast Asia's largest Energy Storage System, and that was done in six months in Singapore. For the Integrated Urban Solution segment, we achieved a higher order book in 2022. We extended our lead in Vietnam's industrial park development sector with licenses secured for Quang Tri Industrial Park, VSIP Binh Duong III, VSIP Can Tho, and VSIP Nghe An II. In the Conventional Energy segment, we completed the sale of Sembcorp Energy India Limited, SEIL, which operates two supercritical coal-fired power plants in January 2023. This marked an important milestone in our brown-to-green portfolio transition. As part of our ongoing efforts to decarbonize, we also expanded our strategic partnerships with various corporations to progress hydrogen and other decarbonization initiatives.
Since the launch of our Green Financing Framework and Sustainable Financing Framework in 2021, we have received strong support from investors and successfully raised SGD 3.3 billion of funding from green and sustainable financing, as well as refinancings. The funds continue to support the group's transformation and our pursuit of growth plans in the sustainable solution segment. Allow me to go through the key highlights of each business segment. The Renewables segment net profit before Exceptional Items increasing 150% to sgd 140 million in 2022, and this is up from SGD 56 million in 2021. This was driven by contributions from SDIC New Energy and Shenzhen Huiyang New Energy, HYNE. The solar assets in Singapore also performed better on higher power prices.
Net profit after EI was SGD 132 million, up 136% from SGD 56 million in 2021. In 2022, we made strides in growing our portfolio, adding 2.4 gigawatts of renewables from acquisitions and 1.2 gigawatts from organic growth during the year. This brings the total gross renewables capacity to 9.8 gigawatts, which is very close to our target of 10 gigawatts installed renewables capacity by 2025. Apart from growing our renewables portfolio, we entered into strategic partnerships with Japan Bank for International Cooperation, Sojitz Corporation, IHI Corporation, and this to progress hydrogen and other decarbonization initiatives. In addition, we are advancing our collaboration with Mitsubishi Corporation and Chiyoda Corporation with the commencement of a Pre-FEED studies for the development of hydrogen imports via Methylcyclohexane, a type of Liquid Organic Hydrogen Carrier into Singapore.
The partnerships forged align with our brown-to-green transformation and will enable us to play a pivotal role in the development of hydrogen as a major decarbonization pathway in the long run. Complementing Sembcorp's offerings as a leading renewables player, we launched GoNetZero, our carbon management solutions corporate venture at the 27th United Nations Climate Change Conference. GoNetZero offers one-stop access to Renewable Energy Certificates and carbon credits, as well as renewable energy and environmental attribute portfolio management. We are pleased to announce collaborations with leading industry players such as OCBC Bank, Razer, and UBS during the launch. This slide shows a little bit more details on the renewables portfolio. Our gross renewables capacity, including acquisitions pending completion, has more than tripled to 9.8 gigawatts over the past 2 years.
The proportion of renewables capacity in our group energy portfolio has increased meaningfully from 25% to 59%. We make good progress and gain momentum in our growth areas and our growth markets. In December 2022, we successfully commissioned Southeast Asia's largest Energy Storage System of 285 megawatt hours on Jurong Island in Singapore. This facility will enhance grid reliability and energy supply security. It also demonstrates our ability to replicate our capabilities from the UK to Southeast Asia. Our solar portfolio in Singapore is now 551 megawatt peak, including the award of SolarNova 7 project. This portfolio contributes to more than a third of the nation's 2025 target of 1.5 gigawatt peak. In Vietnam, we acquired a 49% stake in Bamboo Capital Group, GAIA, our first utility scale acquisition in the country.
With 141 MW peak of operational solar capacity. Our experience and presence in Vietnam has put us in good state to capitalize on opportunities when they arise. In China, we strengthen our presence and successfully completed the acquisition of a 35% stake in SDIC New Energy and a 98% stake in HYNE Huiyang. Since then, SDIC has also grown organically by another 290 MW. In November 2022, we announced 2 other acquisitions in China. First, 795 MW of solar assets through a 49% owned joint venture with Beijing Energy Sembcorp (Hainan) International Renewables. Second, a 892 MW portfolio through a 45.3% stake in Hunan Xingling New Energy in China.
Hunan Xingling New Energy has since completed the acquisition of 792 megawatts out of the 892 megawatt portfolio from Wuling Power, with the remaining 100 megawatts expected to be completed in the first half of 2023. These projects expand our geographical footprint in China, the partnerships provide platforms for us to jointly pursue further renewables opportunities. In India, we're also very pleased to have completed an acquisition of 100% interest in Vector Green, which holds 583 megawatts of renewable assets. The portfolio brings significant utility scale solar capacity to our India business, complementing our existing wind portfolio. This broadens and deepens our renewable energy presence across the states in India and positions us for more green growth in the country.
In addition to the acquisition of Vector Green, we secured a further 195 MW of renewable projects in India during the year despite competitive market conditions. Last but not least, in the U.K., we commissioned another 50 MWh of our battery energy storage portfolio in July 2022, bringing our operational energy storage fleet to 120 MWh. We also began development of the first tranche of 150 MW or 300 MWh of battery storage as part of a planned 360 MW battery storage system on Teesside. Secured a 15-year Capacity Market Contract for these assets. These batteries are expected to be completed in 2024, further enhancing our presence in energy storage in the U.K.
The Integrated Urban Solution segment delivered a net profit before EI of SGD 148 million, compared to SGD 155 million in 2021. In the urban segment, lower land and property sales in China was mitigated by a strong demand in Vietnam and higher sales margin in Indonesia. Our waste to energy plant in the UK, Wilton 11, which serves our industrial customers on Teesside, performed better due to higher power prices. Net profit after EI was SGD 140 million compared to SGD 161 million in 2021. We have received investment licenses to develop four other industrial parks in Vietnam, and now have 16 urban projects strategically located across Vietnam, China and Indonesia. These parks provide platforms to leverage our business synergies and drive future growth in sustainable solutions.
In March 2022, we began the development of VSIP Binh Duong III, which is envisioned to be the model of a smart and sustainable industrial park. A distinguishing feature of VSIP Binh Duong III is its planned 50 hectares on-site solar farm, offering great reliability and sustainability benefits to its industrial tenants. The LEGO Group has begun construction of its first carbon neutral factory in VSIP Binh Duong III, which is planned to be powered by renewable energy drawn from the solar farm installed by VSIP, as well as solar panels installed on their sites. As an expansion of our product offerings, we started the development of Sembcorp Logistics Parks in Quang Ngai and Nghe An in the provinces of central Vietnam. Totaling 76,000 square meters in gross floor area, these modern ready-built warehouses provide quality logistics spaces in strategic locations to manufacturers.
Construction will be completed in the fourth quarter of 2023. We move on to Conventional Energy. The Conventional Energy segment delivered a strong performance in 2022. Net profit before EI was SGD 766 million, up 105% from SGD 373 million, driven by higher power prices in Singapore and the U.K., as well as gains from favorable gas hedges. This was partially offset by SGD 84 million Expected Credit Loss provision for Sembcorp MingGen Power Company receivables. Net profit after EI was SGD 766 million from SGD 174 million the year before. A major milestone in our brown-to-green transition this year was the completion of the sale of SEIL, Sembcorp Energy India.
The transaction structure was developed in accordance with the strategic commitments we have communicated and will preserve value for shareholders as well as protect the interests of SEIL's many stakeholders. We will continue to support SEIL's operational excellence and initiatives to decrease its greenhouse gas emissions. This is done through a technical service agreement. To underscore our commitment to sustainability, we have also provided a financial incentive that rewards a reduction in emissions intensity. To diversify our sources of gas, we signed a supply agreement with TotalEnergies to import LNG into Singapore for 5 years starting from 2025. This is Sembcorp's largest LNG contract signed to date, and it will augment our energy generation sources and supplies in Singapore. This slide gives a snapshot of our progress against the strategic targets that we have explained to you in 2025.
In the year 2022, sustainable solutions comprising the renewables and Integrated Urban Solution segments accounted for 27% of group net profit compared to 35% as at the end of 2021. Despite the decline, it is important to note that the sustainable solutions portfolio performed well with net profit growing at a compounded annual growth rate of 35% since 2020. We also saw strong earnings contribution from the Conventional Energy segment, which led to it being a bigger contributor to group net profit. In terms of our renewables target, we have achieved 8.3 GW of gross in-stock capacity and a further 1.5 GW of gross capacity under development. We are close to our target of 10 GW gross in-stock renewables to be achieved by 2025, and we continue to look for opportunities to grow this portfolio.
Urban land sales in 2022 was steady at 172 hectares. This is despite a weak property market in China. 2022 order book was higher also at 312 hectares compared to 279 hectares in 2021. We will and must continue to focus on growing our land bank to ensure a steady launch pipeline. With the divestment of SEIL, we have met our 2025 carbon emissions intensity target well ahead of time. Excluding SEIL, 2025 emissions intensity, Scope 1 and 2, would reduce to 0.31 tons of carbon dioxide equivalent per megawatt hour. Absolute emissions for Scope 1 and 2 would decrease to 10.4 million tons of carbon dioxide equivalent in 2022. We will continue to actively explore options to reduce our absolute emissions to achieve our 2030 and 2050 targets.
Our focus on execution has yielded results. We have made very good progress in our brown-to-green transition in less than two years. While the global economic outlook remains uncertain, the opportunities ahead are significant. With our capabilities and track record in energy and urban development, we believe we remain well-positioned to seize opportunities in this transition. Given the strong growth momentum, we are looking beyond 2025 and will communicate our refreshed strategy and targets to shareholders and investors later this year. Let me now hand over to Eugene. He will give you more details of the group financial review. Thank you.
Thank you, Kim Yin. As you have heard Kim Yin mention earlier, for this particular year, our group financials, as you will find in the SGXNet, is presented slightly differently. Where the discontinued operations, which represents SEIL's contribution for the year, is represented as a single discontinued operations net profit contribution, right? This particular slide help to detail from a line-by-line basis the continuing operations and the discontinued operations as a comparison. Within the SGXNet, you can find more details in relation to the discontinued operations under Note 7C. I'm pointing, you know, that out for those who would read the SGXNet to make it easier for you. Essentially, the discussions in the following slides will be with reference, largely to the continuing operations. If you move on to the next slide.
As Kim Yin has mentioned, for FY2022, we have achieved a set of strong results. When we look at our turnover from continuing operations, it has increased 22% from SGD 6.4 billion to SGD 7.8 billion. As a result of that strong operational performance, our EBITDA has also correspondingly increased by 48% from SGD 885 million the year before to SGD 1.3 billion this year. The key contribution to the increase in turnover and EBITDA is largely driven by the strong performances in the Conventional Energy segment, as well as the growth that was achieved in the Renewable segment. Share of results of associates and JVs net of tax has increased 20% from SGD 206 million the year before to SGD 248 million.
This improvement, it's largely due to the contribution from the 35%- owned SDIC New Energy portfolio, which was acquired and completed in January of 2022. The combination of the EBITDA performance as well as the share of results performance then resulted in a 43% increase in our Adjusted EBITDA to SGD 1.6 billion for FY22 compared to approximately SGD 1.1 billion for FY21. Net profit from Exceptional Items then grew 129% from SGD 323 million the year before to SGD 739 million this year. As for the reasons mentioned earlier on, largely through the completion of our renewables acquisitions, as well as much stronger earnings in the Conventional Energy segment.
Exceptional Items in FY2022 total SGD 35 million for the items that was mentioned earlier by Kim Yin. This is a significant reduction from SGD 193 million in FY2021, which largely came across as a result of the impairment of our Chongqing Songzao assets. All in all, our net profit from continuing operations is SGD 704 million compared to SGD 130 million in FY2021. Our total net profit for the year is SGD 848 million compared to SGD 279 million. Total net profit for the year in FY2022, once again to reiterate, excluding Exceptional Items, would have been SGD 883 million, as highlighted earlier on.
So from an Earnings Per Share perspective, EPS before Exceptional Items from our continuing operations is 41.5 cents compared to 18.1 cents the year before. EPS taking into account Exceptional Items is 39.5 cents compared to 7.3 cents the year before. ROE from our continuing operations is 18.2% compared to 3.7% the year before. Moving on to the next slide. This slide details the turnover breakdown as well as contribution from the key segments of our business, particularly within the continuing operations. Just want to mention that the Renewable segment saw a 43% increase in turnover. And for...
as highlighted early on, it's largely due to the completion of the acquisition of the HYNE portfolio, as well as a higher, you know, energy prices that was realized for our solar operations in Singapore. In addition, we also have an additional 50 megawatt of contribution from our CalSET batteries that came online in August of 2022, that will continue to contribute on a Full Year basis in FY2023. The Integrated Urban Solution saw a slight decline in revenues, and this is largely due to the cessation of a public waste collection contract in the Singapore waste management business. The bulk of our urban solutions earnings are contributed at the associate level, and so I'll touch on that in a slide subsequent to this.
All in all, turnover from our sustainable solutions segment is SGD 950 million compared to SGD 819 million the year before, representing a 16% increase. In the Conventional Energy, turnover increased by 24% to SGD 6.5 billion from SGD 5.3 billion the year before, driven largely by the strong power price and demand performance, particularly in Singapore and the UK. Other businesses saw a 10% increase in turnover to SGD 328 million, and this is largely a result of higher volumes of projects from our Sembcorp Specialised Construction business.
When we look at the breakdown of our group net profit for FY2022 compared to FY2021, as mentioned earlier on, we have seen the Renewable segment contribute SGD 140 million, representing a 150% increase over for SGD 56 million that was seen in FY2021. This SGD 140 million in net profit for the Renewable segment largely benefited from 11 months contribution from SDIC and 7 months from HYNE. On a Full Year basis, on a run rate basis, assuming that SDIC and HYNE have contributed on a Full Year basis, that SGD 140 million would have been about approximately SGD 166 million.
The Integrated Urban Solution segment, from a net profit perspective, also saw a slight decline and this is largely a result of, you know, one having one sector less in the waste business. Also lower land and property sales in our urban business as a result of a slowdown in China. This has been partially mitigated by higher earnings from Wilton Eleven in the UK, which is our waste to energy plant that has benefited from a stronger price performance. All in all, net profit contribution from our sustainable solutions segment was SGD 288 million, a 36% increase from SGD 211 million the year before.
The Conventional Energy segment turned in SGD 622 million in a net profit, which represents 115% increase from SGD 289 million the year before. This SGD 622 million has been, you know, achieved as a result of strong performances, you know, largely from higher power prices in Singapore and U.K. You know, benefiting from the fact that we have a diversified portfolio of gas in Singapore that allow us to optimize our spark spreads.
This has been partially offset by a $84 million ECL or Expected Credit Loss provision that we have taken for our MingGen asset, which I will quite painstakingly explain in a slide after, because, you know, some of you may be wondering how that has come about. Our Other Business net profit contribution has remained rather stable, SGD 23 million compared to SGD 25 million. From a corporate cost perspective, largely similar levels as well. When we factor in the effects of our Exceptional Items, directionally, right, the numbers represent, you know, the factors that I've discussed on a before Exceptional Items basis.
I just want to move on to the next slide, which shows the net profit bridge between this FY2022 and FY2021. Right. For our Renewables segment, you know, when we look at the FY2021 net profit before EI, of SGD 323 million. The Renewables segment contribution growth, you know, largely came as a result of the completion of our acquisitions and also stronger solar prices for our solar operations in Integrated Urban Solutions, as mentioned early on, you know, slightly lower earnings as a result of slower land sales as a result of China slowdown. Loss of a sector in the assemblies business offset by stronger performance for Wilton 11.
For the Conventional Energy segment, okay, the outperformance is really, you know, stronger fuel prices and spreads and margins achieved. I just wanna talk a little bit about this SGD 84 million of Expected Credit Loss provision, which is one time in nature that we had to take, and it's non-cash for MingGen. If you recall, our MingGen is really a gas-fired power plant incepted in Myanmar in 2018, you know, with a long-term concession with EPGE, which is, you know, the national power company.
As a result of the nature of the contract, instead of accounting for the MingGen power plant as property, plant, and equipment and recognizing receivables as generation occur, the entire, you know, concession contract was recognized as one single large service concession receivable as a result of IFRS 12 accounting, right? That, you know, service concession receivables total, you know, an amount of, you know, close to SGD 260 million. Because it is a service concession receivable, SFRS 9, which is the accounting standards for accounting for financial assets, is applicable in this situation.
At the end of each financial period, we are to assess if there is a significant increase in credit risk based on circumstantial as well as macroeconomic situations to estimate if Expected Credit Losses on that basis. Pretty much what a bank would do looking ahead for the asset. When we reviewed the, you know, credit and economic situation surrounding Vietnam, a few things we noted have taken place across 2022, right? There were currency controls put in place, you know, in the first half of the year, although none of them were applicable to Minggen as an essential services. We continue to receive US dollars even up to this day.
As we progress through 2022, certain developments continue to take place in Myanmar. One, a meaningful one, was Myanmar being placed on the blacklist, so-called, of the Financial Action Task Force. That typically potentially could be a signal for increased risk of economic and financial sanctions. When we look into January this year, we did notice that, you know, certain, you know, Myanmar entities faced increased sanctions. That is in the news. We did see certain officials in MOGE being sanctioned and a couple of Myanmar SOEs, which are mining companies, Mining Companies 1 and 2, face sanctions.
While although as of now, operationally, you know, the gas plant being, you know, one of the, if not the most efficient, gas plant in Myanmar, you know, still generating and still receiving payments up to January of this year. Taking into account of all the, all the factors under the requirements of SFRS 9, we did have to come to the conclusion that there is a significant increase in credit risk surrounding Myanmar as well as the counterparty.
As a result, we took a reference to credit ratings of Myanmar cross-reference against you know a probability of default rates you know with those ratings on a lifetime basis that are typically put out by the ratings agencies, and that ultimately sized our additional ECL provision of SGD 84 million. Okay? Now I just want to highlight this point because it really came about as a result of how you know the MingGen investment has to be treated on our books as a IFRS 12 service concession receivable. As a result, SFRS 9 which lead to expected credit loss provisions on a look-forward basis have to be applied.
It is non-cash in nature, and from an operations perspective, as of now, the asset is still receiving payments for generation, you know, as recent as January of 2023. I just want to highlight this element in relation to Conventional Energy segment. There may also be a question as to why this SGD 84 million has not been treated as an exceptional item. If you look at it historically, what we have treated as Exceptional Items are either impairments or gains or losses from a monetization of investments. We, given that we have consistently applied the definition of Exceptional Items, in this situation, while it is a one-time ECL provision, it doesn't fall into how we have consistently applied the Exceptional Items.
That is the reason why this SGD 84 million is not treated or not disclosed or classified as an Exceptional Items. Happy to take more questions later on, but essentially, I just want to explain this situation. SGD 84 million non-cash ECL provision as a result of application of SFRS(I) 9 on the service concession receivables. Then, you know, if we touch on corporate, as mentioned earlier on, not much of a significant change, compared to last year. If you move on to the next slide. This slide, detail, details our group ROE from a continuing operations. From the Renewables segment, ROE stands at 10.2% compared to 4.6%.
A significant part of it, as a result of the completion of the HYNE, as well as SDIC portfolios and also the continued generation that come through our assets maturity. Now, I just want to highlight 10.2% ROEs on the basis of a 11-month contribution by SDIC and a 7-month contribution by HYNE. Assuming both are at run rate, you know, the ROE would have been Integrated Urban Solutions saw a slight decline in ROE also for the reasons mentioned earlier on. You know, essentially the loss of that sector in some ways and also a slowdown in the China property market that... Sorry.
That, you know, was offset by higher, you know, energy prices that was realized for Wilton 11 waste to energy plant. A Conventional Energy segment turned in a very strong ROE of 34.8% in FY2022. Now, ROE, which is the table below that, represents ROE, including our Exceptional Items, but pretty much paint a similar picture. Moving on to the next slide, just to touch on a little bit about, you know, our group capital expenditure as well as equity investment. As expected, the bulk of, you know, our capex and capital allocation in FY2022 has been into the Renewable segment.
1.6 billion of our total CapEx was allocated into the Renewable segment, which, you would have seen, you know, resulted in the strong growth, both in capacity and also in earnings and, you know, to come. Approximately 8%-10% of the CapEx was allocated to Conventional Energy, but largely for maintenance purposes and business as usual. Pretty much in line in the five-year guidance that we have shared with the market. The next slide highlights our group free cash flow. Given a strong performance, you know, our operating cash flows was, you know, close to SGD 1.7 billion compared to SGD 1.2 billion in FY2021, representing a 36% increase.
Correspondingly, our free cash flow also improved SGD 1.8 billion compared to SGD 1.3 billion the year before, you know, representing a 36% increase. Moving to group borrowings. In for the year ended December 31, 2022, our gross debt has reduced to about SGD 7.1 billion compared to SGD 7.4 billion as of December 31, 2021. Of course, this came as a result of the deconsolidation of SEIL's debt from the balance sheet. If we had included SEIL's borrowings for December 31, 2022, that would have been SGD 8.2 billion.
The, you know, increase of roughly SGD 800 million-900 million is largely for the funding of, you know, the consolidation of debt at the HYNE portfolio level, as well as the funding for the equity contribution for HYNE as well as SDIC, as we closed those acquisitions. If we focus on December 31, 2022, what does, you know, the rest of our credit metrics look like? Our debt to EBITDA would have been a 5.4 times, and a debt to Adjusted EBITDA, 4.5 times. If we take into account the cash and cash equivalents of one...
close to SGD 1.3 billion that we have on our balance sheet, net debt to EBITDA would have been 4.4 times, and our net debt to Adjusted EBITDA, 3.7 times. Our EBITDA to interest also has improved on a year-on-year basis to 4.2 times and, you know, Adjusted EBITDA to interest, 5 times. When we look at our group debt portfolio, you know, from a maturity profile standpoint, as you would recall, over the past 2 years, we have taken a quite, you know, a lot of focus in number one, raising longer-term, you know, ESG related financing to fund growth, as well as, you know, to term out, you know, certain refinancings of, you know, debt that was due.
Quite pleased to say that, you know, looking at the debt maturity profile, it has been pushed out into the longer term. We still have, you know, about SGD 2 billion of debt that is coming due in the next couple of years. We are working on a refinancing, and access to capital would not be a problem. I also want to highlight and talk about our borrowing profile. As you have heard me mention, you know, at the start of our, you know, execution of this five-year plan, one of the key elements will be to reduce our reliance on project finance loans and to increase, you know, a corporate level borrowings, particularly in the green and sustainability-linked space.
We are quite pleased to say that, you know, looking at our borrowing profile today, right? Project finance loans, you know, comprises only 16%, and, you know, corporate debt comprises 84%, of which half of that represents green and sustainability-linked financing. We have come a long way in the ESG financing space, being able to raise SGD 3.3 billion over the last, you know, 24 months. Looking at our interest rate exposure profile, you know, right now 66% of our debt profile is fixed and 34% of it is floating.
This compared to in 2020, you know, we have, you know, focused quite a lot on fixing, you know, our debt portfolio. Back in 2020, only 37% of our portfolio was fixed. We have, you know, quite, you know, over the past two years, focused on fixing the portfolio 66%. Of course, going forward in the current environment, we will still be focused on increasing the fixed rate proportion of our portfolio with an intended target of 75%. When we look at our weighted average cost of debt, average across FY22, we see a marked reduction compared to FY21.
We have brought our weighted average cost of debt down to a 4.1%, and a lot of it contributed by the more cost-efficient green financing that we are able to raise. Having said that, we do know that base rates are increasing, particularly through FY2022. The fourth quarter weighted average cost of debt for us was increased a little bit to a 4.4%. As we, you know, in the rising interest rate environment, while we have achieved a good result of 4.1% for FY2022, we do have to note that going into FY2023, it is still a rising interest rate environment.
The advantage that we have is that we still could focus on tapping green sources of financing and are being able to focus on managing our margins and spreads. Right now, our weighted average debt maturity stands at a 4.5 years compared to 4.8 years before. That reduction in the debt maturity profile largely is in part due to the deconsolidation of SEIL's debt, which is project finance in nature and are longer term, on average, in nature. When we look at the group's liquidity position, right?
When we look at 31st December of 2022, I'm quite pleased to say that from a committed dry powder standpoint, we have cash and cash equivalents of SGD 1.3 billion, as well as a committed unutilized revolving working capital facilities of SGD 2.4 billion. This means that at this point in time, we have, you know, ready to deploy at short notice, SGD 3.7 billion of dry powder to allow us to continue to capitalize on any opportunities that become due. We do have a further additional SGD 2.5 billion of uncommitted facilities and SGD 912 million of, you know, unutilized trade related facilities. Good liquidity position.
In summary, just want to take us through the outlook statement that we have placed up. We acknowledge that in 2022, we have performed exceptionally, particularly driven by the strong performance in the Conventional Energy segment, right on the back of, you know, good power prices that was realized in Singapore and the UK, and as well as the increase of capacity in the Renewable segment. When we look forward, we do expect the Renewables segment to grow, right? As a result of contributions from acquisitions that we had announced, particularly towards the end of 2022, and also full-year contributions of the ones that we have closed early on in the year.
Now, the urban business will continue to secure our land bank and to ensure that we have a steady land pipeline to realize, you know, the earnings from the land sales. You know, we do expect that the performance of the Conventional Energy segment to potentially be subject to energy market conditions. We do want to highlight that our SEIL transaction was completed in January of 2023. In 2023, we would be recognizing the income from our deferred payment note. There are still certain macroeconomic headwinds that persist, which comes through in a form of, you know, interest, heightened interest rates, as well as a possibly elevated inflation that may weigh down on global demand.
Also, of course, further escalations in geopolitical tensions could potentially disrupt supply chains and impact business performance. All in all, the group will still continue to focus on our execution of our transformative strategy and will leverage on our energy as well as urban development capabilities to continue to seize and drive growth and capture opportunities in this global energy transition. To end off my segment, I just want to point out, you know, a couple of developments to note, right? Something that you already know. Our power purchase agreement of Phu My 3 power plant in Vietnam will expire in the early part of a 2024. We will continue to monitor the development in Myanmar closely, right?
Post the ECL provision of $78 million pre-tax, our net book value of Sembcorp Minggen Power Company, as at the end of December, still stands at $49 million, and $205 million of the project's loans remains outstanding, backed by a corporate guarantee that is issued by Sembcorp Utilities. I just wanna talk a little bit about our sale of SEIL. Given the fact that we have completed the sale, you know, I am, you know, happy to share the results of the completion of that sale. I just want us to focus on the upper half of the table, right?
In June of 2022, we have guided the market that based on, you know, the estimation of our net consideration and the carrying value at that point in time, we had expected a slight loss before the realization of flushing out of our Foreign Currency Translation Reserve and any other capital reserve, you know, in our books relating to SEIL. Taking into account those reserves position as of 30 of June 2022, there was a slight, you know, excess or gain from the disposal of SGD 11 million. Okay. When we fast-forward that to 19 January this year, right? When we look at it from a, you know, pure transactional or cash perspective, right? We were able to realize a SGD 47 million gain.
Given accounting considerations, similar to the calculation in June of 2022, we would have to flush out the reserves that are related to SEIL in the balance sheet into the P&L before taking it back into equity again. What I want to point out is that, when you look at the realization of our Foreign Currency Translation Reserve, the FCTR, over the course of the last 6 months, particularly in the last quarter, our Foreign Currency Translation Reserve has in general moved against us.
Now, for people to understand, the Foreign Currency Translation Reserve measure the difference in the exchange rate on a balance sheet date against, you know, the date in which, you know, the assets and the, and the, and the, and the, you know, have been booked at historical costs within our balance sheet, right? If you look in, you know, our SGXNet, you will notice that in the second half of this year, right, we have a significant negative movement of Foreign Currency Translation Reserve. Firstly, as a result of the Indian rupees, particularly in the fourth quarter towards the end of the year. Also the renminbi, which, you know, currently has since recovered a bit.
Given that situation, right, the accumulative foreign currency translation reserve in relation to SEIL was SGD 418 million, you know, at the point in time of a completion of the transaction. As a result of that, taking into account of this movement, on completion, the gain loss of, you know, the SEIL transaction has resulted in an SGD 81 million loss largely as a result of the foreign currency translation reserve movement. I just want to highlight that actually there is no real impact to the net asset value of the, you know, Sembcorp Industries. The FCTR has already been recognized in the FCTR reserve.
For the purpose of, you know, accounting for the completion of this sale, it is moved from the FCTR reserves into the P&L and then back into equity. Just also want to highlight that this foreign currency translation reserve of $418 million is non-cash, and it is largely a, you know, a translation reserve to measure the difference between the exchange rate at the point of the balance sheet date and when, you know, the assets were recorded as historical costs. I just want to end my presentation on that note to give a highlight of some of the developments that the management continue to monitor and that is coming up.
I will end my segment and, you know, we are happy to take any further questions from the floor.
Thank you, Kim Yin and Eugene. We have now come to our Q&A session. For the benefit of the audience who's viewing the briefing online, please use the microphones for questions. Please raise your hand if you have a question, and a microphone will be brought over to you. Please also state your name and indicate the organization you represent. For viewers of the webcast, you can key in your questions in the Q&A box by clicking on the Raise Hand icon on the webcast page, and we will address the questions during the session as well. First question from the floor. Zhiwei, please.
Hi. I'm good afternoon. I'm Zhiwei from Macquarie. Thank you for the presentation. I have three questions, two on conventional and a third, and one on renewables. The first question is regarding your electricity pool trading in Singapore. Was it a significant contributor to your second half 2022 earnings? How does it compare half on half, right? When we think about it, FY2023, what proportion of your second half figures should be considered as sustainable, right? Second question on Conventional Energy relates to your EBITDA margin. I note that it has improved on a half-on-half basis. You mentioned that your diversified gas business has kind of helped with your spot spread. How sustainable are these margins going forward?
Now, on the third question on renewables, when I look at your plant load factors for your renewables in India and China, SGI seems a bit weak. Are there any other assets in your renewables portfolio that is not performing to your expectations? What are you doing to address them?
Okay. I think, in terms of the pool contribution for the second half of 2022. As you have recalled, you know, largely from management of our Singapore assets, roughly 2/3 of our assets are, you know, contracted, right? We tend to leave 1 asset, you know, free to either serve as backup to either, you know, generate into the pool or, you know, potentially we can also monetize a gas positions for them.
I'll say that, you know, from a second half perspective, it is largely on that basis, roughly about a third, you know, of the capacity it's running on pool. Now, in terms of EBITDA margins that is realized for the conventional market in the second half. You know, we did, you know, saw a strong performance that is coming through, right, as a result in the earlier part of the second half overall from the portfolio. You have also heard me mention before that through FY2022, you know, we will continue with the, you know, the strategy of really keeping at least two-third of our capacity contracted, right.
Going into covered by 1-3 year retail contracts, going into FY2023. Our gas positions also, you know, when we are secured the gas positions coming into Singapore, we would also hedge off any indexations that is exposed. From that perspective, from a margin standpoint, right, we do see going to FY2023, you know, fairly stable. The last point in relation to the Renewable segment. I think we just have to take note that particularly in the second half of the year, right? Generally, you know, we do hit certain parts of a low wind season.
In India itself, particularly in Q3, we are hit with some low wind. As a result, probably that may be the reason why you see some, you know, you know, lower, you know, plant load factors, contributing in the second half.
Second half versus first half.
No, this is not his question.
Yeah.
Sorry.
What about your other portfolios in, say, China, was there any weaknesses in the POF that you saw?
Okay.
It seems to be down half on half.
Yes. Even in the second half, for the China wind portfolio. There is also typically some seasonalities. That we see low wind in the second half as well for the China portfolio. Which is also a trend which you have seen in the past years as well.
From our perspective, wind is wind, right? Sometimes blow, sometimes doesn't. What we want to make sure is that when it blows, the plant is up. Maybe happy is not the right adjective. When we look at the softening plant load factors across the portfolio, the reason for it softening wasn't because the plant was down. I think that is important thing to note. As we grow with a bigger portfolio, you know, it tends to, you know, hopefully have a portfolio effect or more diversification. What we want to make sure, again, want to emphasize that we, we want to satisfy ourselves that plant load factor down is because of wind. You know, it's something that we have to deal with.
If it's because of our own operation issues, then we have a problem, right? At least what we observed in the last year, it wasn't because of largely not because of our plant not being available. Is that your questions all dealt with? You happy with them?
I'm just going to take it offline.
Okay. Thanks.
Next question, please. Gulen.
Gulen from The Edge. I must admit, this is the first time I'm really looking at Sembcorp. How should we think about the outlook of the power in Singapore, in this coming year, given that we had a huge upswing in the costs last year? That's 1 question. Also, how should we think about the outlook for the cost of debt? I think, the CFO, you said that you have about SGD 2 billion to refinance in the next 2 years. What was, like, your exit cost of debt like? What do you think it's likely to be this year? Based on that, I guess, there'll be an impact on your ROEs and the returns that you'll get from your assets.
The other question is, regarding SEIL. How should ESG, people who look at ESG think about a cash flow that comes back on your Deferred Payment Note? Because it's is it Scope 3 or whatever that is likely to be brown? I'm not quite sure how that works. Yeah. Those are the three questions.
Why don't I answer the first one?
Yeah.
The cost of debt and SEIL Scope 3, you can answer.
Yeah.
Right. On the Singapore market, what folks on the street experience is the retail energy prices, right? Retailers, including Singapore Power, would retail power to you. Their cost is mainly based on the wholesale electricity market. Wholesale electricity market is a function of demand and supply. The supply being the power generation businesses, right? The GENCOs. The GENCOs derive their power, providing the supply into the wholesale market via natural gas, largely, right? Maybe, I don't know what's the right number now, probably 95% that goes into a wholesale market is from natural gas. Natural gas come from two sources, pipe natural gas as well as LNG, right? As you know, with what's happening in the international gas markets, partly driven by Ukraine and all that.
Last year we saw a lot of volatility and high gas prices in the international gas markets. That flows through into Singapore as we import the LNG into Singapore. Import prices was high for the primary input into the power plants. That translates into higher cost structure and higher electricity generation costs, which then flows into the wholesale electricity market. The retailers pick that up. Then they flow it through to you. If we want to think about next year, sorry if I repeated this current year. If I repeated something that folks already well know, please forgive me, right? I, in my mind, I'm also trying to construct it so that then I can explain it for myself.
For this current year, which is 2023, where do we see electricity prices for end customers in Singapore? I will try to answer it without answering it, right? You saw that in our prospect statement, we did warn against or we pointed towards. I don't want to say warn, right? Because this type of session where you say warn, then people say, "Profit warning." No, it's not quite that. I want to point towards that you trace it back, it boils down to international gas prices. International gas prices, what is the outlook? We expect it to continue to be volatile. In the last two calendar quarters of 2022, Q3 prices were firmer than Q4. We saw it tapering down somewhat in Q4, right?
How does that move forward? Not quite sure. After Ukraine War happened in mid-2022, when most people look forward, they say, "Oh look, you know, winter is gonna be very bad," right? The European winter is gonna get cold. People will run out of gas, right? Gas prices will go very, very high in winter. Lo and behold, in the fourth quarter, when winter begins in Europe, prices soften relative to Q3. The market is running ahead of itself. Today, if we take a crystal ball and we say, "Hey, look, what's gonna happen in 2023 to gas prices?" We expect it to not... We don't expect it to crash. Let's put it that way, right? It's not gonna just go back to the heydays of 2019, right? It will stay firm.
At that firm level, volatile on the upswing, right? From month to month you might see some events-driven issues, and then it will flow through into Singapore. That is international gas markets. In the Singapore side, our GENCOs, are we able to insulate ourselves from some of that by contracting long, right? If we have gone out there, our GENCOs, including Sembcorp, have gone out there to sign contracts to hedge against volatile prices, then we might be partially insulated against this. I cannot speak on behalf of the other GENCOs in Singapore. I don't know what they've done, right? For us, for 2023, a good portion of our production or expected production we have hedged. All right? We have hedged. Of course, hedged at what level I cannot share with you because otherwise that's forward-looking.
We have hedged such that then we can say that our expected gas input costs into our power generation business will be stable because we have hedged a good portion of it. When it goes down to flowing down to end customers in Singapore, we hope that if our the entire other market players have done the same as we did, then it would be more stable than less. I can also, for whatever it is worth, and you can't speak. I can't speak on behalf of the regulator. They are also watching this very closely. Our regulator Energy Market Authority, they have also put into place measures that will help stabilize the market.
I would like to think that the retail electricity market for 2023 would be less choppy than 2022. Maybe that's as far as I could stretch myself. I see Eugene giving me that look already. I hope I've shed some light. Like I said, answered without answering.
No, no. Thanks. That's very helpful. could I ask the impact... your Conventional Energy segment within Sembcorp, which is your largest segment, I mean, what is the outlook like? Are you expecting stable margins so that everything will be stable? because that sort of growth that you saw in 2022, I'm just wondering, can it be repeated?
As I mentioned just now, a good portion of our expected production in 2023 we have contracted. If the gas part, the input part is a big driver of profit margins into our Singapore business, into our Singapore Conventional Energy business. Having contracted a good portion of it, we expect our 2023 Conventional Energy business in Singapore to be within our expectations. Having contract means it should be stable.
Actually, Koh Chiap Khiong is here, our Singapore CEO. He would tell you, I'm not gonna put him up here, but he will tell you that he should be quite confident about his budget this year. To a certain extent, Zhiwei Foo, that's also an indication of the question that you asked me early on. Okay.
Yeah.
Okay. On interest costs, yes. Although we average 4.1% across FY2022, some of the refinancings that we have done in the fourth quarter of last year actually saw our weighted average cost of debt go up to 4.4%, you know, in the fourth quarter of last year. I think as we look forward into this year, as we focus on the refinancings that has to be done, I think we have to take note of a couple of factors, right? Which are offsetting. Now, firstly, it's, you know, base rates have come up, right? Interest rates are have hiked. I think if you look at where OECD yield curves are, particularly, you know, U.S., Singapore, they are inverted.
At the longer end, when we're talking about 7, 10 years, you know, you know, base rates are actually lower than the short end rates. Obviously, you know, we will be looking to refinance at the optimal tenors, looking ahead, you know, in light of the inverted yield curve. In certain countries, for example, like China, right, the yield curves are still representing a, you know, fairly normalized economy. Interest rates environment are still pretty benign there. As we refinance in China, right, we do expect to be able to realize some positive, you know, interest cost impacts there.
Having said that, while our base rates are in general increasing, as I mentioned earlier on, one of the successes that we have in the last 2 years, when we, you know, change our financing philosophies again, using a corporate level, you know, a green format of a financing where we get to average down on our margins as well as the spreads. That would be the offsetting impact against, you know, the rising base rates that we are, you know, experiencing as we, you know, manage our overall interest costs.
You know, net-net impact, we do expect our interest costs potentially to creep up, but, you know, there will be mitigating factors that we will put in place to overall still manage our interest costs accordingly. Okay. That's what I'll say about our cost of debt. The second question is in relation to accounting for the carbon for SEIL post transaction. The positive thing is that we have concluded obtaining an independent opinion from a well-known assurance firm, which tend to stand among the count of four globally, right? I wouldn't name them. The conclusion that we got to is that from a Scope 1 and 2 perspective, SEIL would no longer be contributing to our Scope 1 and 2. That's clear.
Now, because we have the Deferred Payment Note out to them, under Category 15 of the GHG carbon accounting protocols, we would be recognizing, you know, the Scope 1 and Scope 2 of SEIL back at Scope 3. Right? How that is done, you know, it will be the proportion that, you know, the Deferred Payment Note represents, you know, in light of their total capital or total funding for SEIL to take in, you know, the Scope 3. I would say that we can confirm that, you know, that would be the accounting carbon accounting for SEIL going forward. Yes.
There's some questions on the web.
Sorry, one more question on your debt. For the Chinese acquisitions that you made in SDIC and Huaneng, are they onshore debt? Did you take onshore debt or offshore debt or combination?
Okay, there is a funding of two elements. The funding of the equity component of those acquisitions are largely, you know, offshore debt, the proceeds from our ESG financing. Very efficient. Of course, we hedge via cross-currency swaps, given the Chinese yuan exposure, right? The onshore debt that we have consolidated on the balance sheet from Huaneng, they are onshore in nature, right? Obviously, you know, taking the new philosophy of managing project finance, there will be opportunities for us to optimize the cost of debt in the Huaneng portfolio, as we look at refinancing.
Some questions that's related to borrowings as well from the web. Any reasons why SEI is looking to cut project financing exposure and increase the corporate level? Also whether we've received any feedback on continued access to the sustainability financing market following the SEIL transaction and report.
Okay. Yeah, I think, in looking to cut project financing exposure, I think, you know, we have explained, you know, when we are looking to grow into renewables, the financing philosophy is a little different, right? Project financing, they tend to be very long-dated floating rate in nature. In addition to that, although non-recourse as a result, having higher margins, also are very restrictive in terms of a cash flow waterfall, right? We have to fund DSRAs. You have to meet debt service coverage ratios and all that before cash could be made fundable.
May be suitable when you're looking at a very large CCGTs, or, you know, well, pardon me for mentioning this historically coal plants, that lend itself to a, you know, single very long PPAs, to service, you know, the debt. Quite tricky for renewables because renewables are typically on an individual project standpoint, they could range anywhere even when there's utility scale from 50-100 megawatts or 200 megawatts as opposed to 1 gigawatt, 1.5 gigawatts, 2 gigawatts, right? So as a result, you know, the renewable projects also from a time to market standpoint is a lot shorter to arrange.
Using, you know, a corporate financing will allow us to be able to fund these projects a lot more nimbly. Secondly, also is being able to, you know, manage their cash flows that come from these projects. Given the fact that, you know, the growth in the Renewable segment and their deployment of the CapEx is much shorter, being able to have, you know, as close as possible unfettered access to a group cash flows, particularly for these assets is important, right? That we can always continually redeploy them for growth. In a project financing setting where there is a lot of cash restrictions and waterfalls in place, that makes it difficult.
Now, the third element I wanna touch on is in relation to capital recycling. Now, clearly, after the, you know, the renewables assets have reached maturity, then we have to start thinking about packaging them for capital recycling. Now, if each of these 50, 100, 200 megawatt assets are. Well, I would loosely use the word encumbered by project financing, right? Being able to put together a package of assets for recycling would be challenging because ultimately you would have to align, you know, a myriad of project financing banks, which, you know, potentially may have differing terms. So to keep it simple, it's always easier to use corporate financing, which allows a lot more of these capital management, or positive capital management initiatives to be done. Yeah.
The second question is, has SEIL received any feedback on continued access to sustainability financing market? I think in relation to this element, the positive thing that we have, you know, gotten feedback from our lending banks as well as investors is that, you know, particularly in the green financing market, you know, it is still very open and supportive of us. From the sustainability financing market, I think in general, there's a recognition that, you know, from a Sembcorp's perspective, you know, whatever we have done in relation to the SEIL transaction was, you know, really in accordance to accounting protocols to the T. You know, in our...
In terms of, you know, continuous support for our access to the sustainability financing market, it is still a very strong and, you know, unfettered. Of course, the point would be now that we have met some of our targets that we have set in our sustainability financing frameworks, you know, then the question is that what would be the new possible set of targets that we would, we could put out to refresh the framework that would be in line with our strategy. In relation to that, we are currently working on that and, you know, we will update the market at a real time.
I thought I might want to leverage on this question to talk a little bit about the SEIL transaction from our perspective, right? We announced that we did it and structured it in a manner that would best serve the interests of our stakeholders. Who are our stakeholders? Stakeholders are our shareholders. Stakeholders are our lenders. Stakeholders are our employees. Stakeholders are our customers, right? Among many stakeholders, but these are the main ones. This plant, in the first instance, it ranks number 4 amongst almost 180 coal plants in India in terms of efficiency, right? Efficiency, that means it is the cleanest relative to, you know, fourth in 180. For India to decarbonize, they should shut down the number 180.
If you shut down this one, somebody in India is gonna get deprived power supply, a reliable source of power supply, low cost. The customer interest shouldn't be compromised, even as we promote our own green agenda. That's number one. Employees. This plant is in the highest, the entire town, if not the city. 2,000 employees. They need stable earnings, you know. They have to bring home their food. They move into living around the plant in order for them to continue serving their roles, right? They, we need to make sure that, you know, their interests are not compromised. More importantly, shareholders. You look at all the transactions that were done prior to our deal. Coal plants. Minimum, if it is a sale, 40% discount. Okay.
40% out of a SGD 2 billion book value, you can do the math. What will happen to our shareholders or our, in terms of our financial performance, our balance sheet? If you knock down SGD 900 million-SGD 1 billion from our balance sheet, suddenly all the debt ratios will have floated up, right? It will look bad. It will hamper our ability to transit our portfolio and to grow because we will have less access to the capital markets. Our ratios are not good. Our debt level is high, right? Your equity just got knocked down by SGD 1 billion. Today, Sembcorp, if you look at our balance sheet, book equity, SGD 4 billion. You knock down by SGD 1 billion, it's material, you know? It's no joke, it becomes SGD 3 billion, you know, overnight.
Taking that big impairment when the, you know, is going to be a major value consideration from a shareholder perspective, right? I'm not gonna go through all the stakeholders, but that's sort of the picture. More importantly, we come out here to tell people we're going to transit the portfolio brown-to-green. What does that mean? Invest in renewables, right? What it also means is I'm taking the cash flow from the brown to fund the green. By structuring the deal this way with a Deferred Payment Note, we continue to enjoy the bulk of the cash flow coming from this business through the interest and principal payment from SEIL. What do I do with the cash flow? Goes towards growing the green, which we have shown you in the last two years how we can execute.
In our minds, it's very clear we're transitioning brown-to-green. We are taking the cash flow from the brown, go to the green, instead of selling it at 40% discount, giving away that cash flow to someone else who most likely is gonna run the plant very hard because they just got it cheap. What is the better outcome for India, for stakeholders, for shareholders, and for Sembcorp? For me, it was very clear. Right. brown-to-green, we continue to invest. Everything that we've done, as Eugene has mentioned, we met the financial accounting rules, we met the carbon accounting rules, and we got independent validation of all that. That's really. I think I want to, I've not spoken about this, since the deal was announced in September and then closed in.
January.
January, right? I haven't had the opportunity to share with you how certainly I see this and how. That's why we structured the deal this way. That's why we're happy with the outcome. That's why we think we can then move on, even continue to benefit from the brown cash flow to fund the green, right? This season, we are very lucky the markets have been buoyant. Margins have been kind to us. Our cash flow from the Conventional Energy segment is strong. The earnings is strong. That's given us that good favorable conditions for us then to continue to go into the green. The question is, you know, are we able to find the quality projects, continue to find quality projects? Are we able to continue to fund, you know?
Having some of that brown cash flow helps in the funding of the green ambition. All right. I just wanna stop there just to help put things into our perspective. Everybody's entitled to their views. There are people who write reports to try to promote their own cause. I respect their cause, but I have my stakeholders to look after.
Next question please from the floor. Mayank first.
Hi. Mayank from Morgan Stanley. Had three questions. I'll start with the renewable side, then maybe we'll move on to convention and the balance sheet. On the renewable side, you have around 1.5 gigs, which is currently under development. Can you just talk us of how much CapEx has been already spent on that? What's coming on that? Is it fair to, for us to say that the 12% ROE you kind of generated on renewable portfolio this year, that can be replicated on a 12+ basis going forward for this additional capacity that's coming through? That was the first question. The second one was more related to, again, I'm just harping back on the gas point, but more from a 3-5-year perspective rather than 2023 perspective. You talked about the new
portfolio that you have signed in terms of sourcing from TotalEnergies. Can you just give us a big picture highlight of how much of your total gas sourcing requirements are completed with the long-term supply? What is still running on spot, and where you see opportunities in terms of growing your gas portfolio in terms of sourcing? What kind of contracts are we kind of thinking about? If you can just give us a bit of a flavor there. I think the last question was more related to the debt side. I think, Eugene, you talked about how you're thinking about getting 75% of the debt to fixed rates.
In terms on absolute levels, are there certain ratios that you're saying that this is a number we want to get to, or this is the absolute net debt that we want to get to, and we are going beyond this? Is there something that's in your mind when you're looking at balancing the balance sheet and the returns? Thank you.
Okay. Let me answer the CapEx questions first. Your third question, Mayank, is quite cheeky, but I will deal with it in a different way. I think in terms of the CapEx question, you know, the fact of the matter is, there's a 1.5 gigawatts left. I think from a CapEx deployment standpoint, roughly a third to 40% have of that has been spent and continued to be developed. I think in terms of a returns, you know, Mayank, we've talked about it, right?
We use a very disciplined approach, CapM base, to make sure that, you know, all from a cost of capital perspective, it reflects the cost of capital at the time in which the projects are developed. I think what we are very happy to see is that, you know, across all the assets that is coming of maturity, right? The 12% run rate ROE that we see right now, you know, from a package of assets that is on average about 5 years old. Right? So I think and that is, you know, largely within expectations.
I do expect that in the longer term, and I mean longer term, right, to average out ROEs, you know, that level of ROEs is certainly sustainable. I think, you know, we have a quite comfortable in how we have selected our projects. Okay. Maybe answer the third question first. Moss, you want to take the second one on the longer term? Third question, Mayank, you're asking me if I have a net debt number in mind. Okay. I think the response I have to you is that, you know, at the end of the day, we did guide the market that, you know, by 2025, we target to have a, you know, a debt to Adjusted EBITDA of about 4.3 times. Right?
You know, somewhere around at that level, we'll be comfortable. Of course, it's hard to put out a number because it would really depend, be dependent on growth and growth ambitions. I just want to reiterate again that we do not need any external equity capital to complete this 10 gigawatts growth. I just want to again respond to that categorically, Mayank. You know. Hopefully this is probably like the third or fourth time you heard from me, you know, I will assure you that, you know, to get to our 10 gigawatts, no equity capital raising. Okay, thanks. Mayank, on the gas, you know that today we are the largest importer of natural gas into Singapore through pipeline as well as LNG. Right?
It's a good position actually. It's given us that opportunity to access customer downstream, also with the gas to generate power ourselves, right? We sell steam, we sell electricity, we sell gas to downstream customers, and also into the Singapore electricity market. You know that that was built on the back of a 20-year gas contract, pipeline, that started in 2001. Right? Now you look at the date today, 2023, that contract continues to flow, but it is beginning to deplete. Everybody knows that. Yeah. We are in this business. We got customer downstream. We have our own needs. We enter into a fresh contract to bring in gas to replace what we haven't, or what is to be, depleting in the existing portfolio. Right?
I want to emphasize that as sort of the, the motivation, right? It's not speculative. We are doing it to the extent we can see the customer downstream. If we got customers and our own needs that I can see far enough, then I would then be prepared to source far enough with my, with my supplier, right? First pipeline depletion, second not speculative, third to serve our customers downstream. I want to reassure you that we find ourselves this season in actually a very interesting position because we have got our gas position has enabled us to really access and serve our customers with confidence in terms of gas and electricity for a reasonably long tenure. Maybe, you know, I can say that right, John.
Because of that, I can go upstream and buy contracts, buy gas with reasonably long tenures. Right? That provides an additional dimension to negotiate. You are prepared to sign long, people can give you a different pricing formula. If you sign short, everybody's going on spot. That one is very, very competitive, as you can imagine, with the shortage or the perceived shortage in gas. Right. I guess I wouldn't venture further from that. Mayank is looking at me with that encouraging look, hoping that I must tell you, I also don't have the details as to the pricing, because you're going to ask me about the price.
I can talk about the term, right, without giving you a number, but I'm saying it's reasonably healthy term because we can see downstream, and we can see upstream. I want to reassure you again that we're doing it to serve our portfolio needs. We believe that will help us consolidate, if not grow our good position in terms of Singapore gas and electricity market. Today, like as I mentioned that we are the largest gas importer into Singapore. It's a good position. We are happy with that. We would like to maintain that, if not grow it. I hope I answered that. The other part about the returns, can I look at it also from a different perspective? We were looking at our renewables portfolio, right?
We in 2 years quadrupled. I remember we started about 2.5, 2.4 gigawatts, right, 2 years ago, and now we are almost at 10. We quadrupled the capacity. The question you ask is, "Have you paid too much in a rush to grow it?" When we did our own sums internally, if all these deals that we have announced up to right now, if they all are operating Full Year and taken into account for a Full Year's operations. Our earnings from this group of assets, from the renewable assets, would have more than quadrupled. Starting from some SGD 50 million, it would have gone to north of SGD 200 million. You quadruple the capacity, but you also quadruple the earnings.
That gives us the confidence that we are doing deals that haven't eroded the returns, notwithstanding that the market has become more competitive, at least right up to this point. I think that is another way that we think about it. Instead of talking to you about 10%, 15%, you know. You know what we were doing 2 years ago for that 2.5 gigs, $50 million. Today, we've got almost 10 gigs, you know. We quadrupled the earnings. That's something that we are very proud of and, you know, we will continue to do the same.
Next question, lady at the back.
Hi. Suki from CIMB. I've got about just five questions.
Suki.
Yes.
Suki, five questions, huh? Okay.
Very easy only.
Suki, There's a seat in front. You want to sit?
Yeah, you wanna come to the front?
Just, I know that I probably won't ask you about the returns question. Maybe just tell us how much of RE capacity is coming in for 2023, so then we know that you might have some new capacity that you would need to fund or to just look at to which may actually dilute the potential long-term target. That's just to set our expectations. Capacity coming in 2023, that'd be helpful. Second question is just on landscape on new opportunities in RE. I know that you said it's difficult, but maybe just share what you see from the ground in terms of pricing or just what are the things that you're looking out for.
That is to build the hope that what will happen when you reach 10 gigawatts very, very soon. That was my second question. My third question would be, Eugene, for Singapore profit in second half, or rather in first half, Singapore contributed about 60% of CE. Is it still about the same? In that second half CE, do we have much gas hedges gains? That would be my next question. I can't remember how many really. Can I also ask the next question, is further provision risk for Myanmar assets?
I know you have actually done a thorough review, and you have explained to us, but what are the things that we should be looking out for that may, you know, cause you to provide further or potentially write back? My final question is, what's the receivable status, the $700 million from the sale of SEIL? 'Cause I noted that we have $21 million delayed interest income in second half. That would be transferred into interest from DPN next time, right? Just wanted to check on the $700 million receivables. Thanks.
Okay. Maybe, I take on 1, 3, 4, 5, and then, you wanna touch on 2? Which is the landscape on renewables.
Okay. Okay, for the first one, for RE capacity coming in 2023, Suki, I think if you look at our announcement, the clear one would be all the 3 acquisitions that we have made. Right? That would be the guaranteed one. I think in terms of timing of, you know, other additions, you know, we have, you know, our construction schedule. You know, they may move around a little bit, but I would say that the definite contribution into FY2023 will be the 3 acquisitions that we have made. Okay? Now, the third question is Singapore contribution to Conventional Energy. Yes, you are right. It's still approximately about 60%.
In terms of hedges, gains in the second half, they are at similar levels to the first half. Okay? Answer the last one on the receivable status. Receivable status have been very positive. Both Andhra Pradesh and Telangana did not miss a single equal monthly installment payments. It was at about SGD 700 million, you know, as we talked about. Thankfully, we ended the year at, you know, a high SGD 400 million, almost SGD 500 million. In a space of, you know, call it 5 to 6 months, we were able to collect about SGD 200 million out of those past receivables. Then in terms of a further provision for Myanmar.
Looking at the current, you know, economic state and the ECL provision, we are quite comfortable that, it does reflect, you know, the, the additional ECL that we need. The only question is that with that, what are the possible triggers that may even, you know, result in a real cash, impairment of the assets? One of the key things that we are looking out very closely, obviously, is the economic sanctions, you know, that potentially could, be placed on Myanmar country one or, EPGE, our, you know, counterparty.
Now, when that happens, typically, and we know the drill, once, you know, Account banks would probably find it hard. Well, not probably find it hard, they definitely would not be able to receive payments coming out from sanction parties. At that point in time, you know, we would potentially have an outright, you know, credit impairment of the assets cash flows. We would have to assess, you know, the further provisions at that time. That answers Suki, your 1, 3, 4, and 5. As the second question, Moss, you wanna touch?
Okay. Suki, I take it that your question is related to new opportunities in renewables, is it? Okay. Okay. Sorry, I didn't quite catch that just now. I think you look at what we did in the last two years. We went into markets where we have got boots on the ground. India, China, Southeast Asia, right? Vietnam, Singapore, UK. That has served us quite well. These markets continue to show very good growth potential, right? India continues to show good potential, even though some of the greenfield secondary bits have become very competitive. We're very happy to note that we were able to find opportunities otherwise, right? You saw that we did Vector Green. It was at, we believe a decent pricing, price point that we got it, right?
There are actually some acquisition opportunities that we continue to come across. Yeah. We are also doing quite well in the C&I segment, right? Even though the numbers are not very big, but they do add up. The nice thing about C&I portfolio is that the margins are good and the customer base diversified. Yeah. We are seeing good C&I. We're seeing some acquisition opportunities in addition to the traditional greenfields that are around. We want to maintain strict discipline. We don't want to do a deal for the sake of the megawatts. As I mentioned to you, the earnings is just important, if not more important than the megawatts. We are also seeing a slight, maybe slight, I shouldn't say slight, but we're seeing some changes in the competitive landscape.
You look at what's happening in India. Obviously, you know, Adani is in a bit of a situation, right? You see ReNew also not aggressively growing. You see Greenko saying that they want to go into Pumped Hydro, right? The competitive landscape is changing, right? The flip side of it is the interest rate is going up, right? The opportunities remain. The demand for green capacity remains strong. We think India continues to be a market where we can find deals. China, likewise, you know, emerging from COVID, things are beginning to turn around. Again, it cuts both ways, right? With the borders opening, what has been a barrier to entry for our competitors is now becoming lower barrier, right?
Our relationships, our track record, our profile, our ability to move fast and be nimble in terms of terms and conditions has really served us well. The market continues to show strong growth potential. Southeast Asia, I don't need to get into, right? That's sort of The first point I'm trying to make in answer to that question, really, from our perspective, where we were successful in growing the green portfolio, the renewable portfolio, we see the markets largely still having strong demand. The second leg to this, increasingly, there's a lot of talk about green hydrogen. You need massive amount of renewables if you want to produce green hydrogen in places that are where we operate, China, India. Also in new geographies like Middle East and perhaps Australia, right?
Chile was held out as one of the most prolific solar destinations. I think it's a little bit far from us, but very close to home, we're talking Australia and Middle East. Middle East, we actually operate there in UAE as well as Oman, right? We actually have got people on the ground, although they are not renewables people. Some of these, the hydrogen angle, to the extent if there is a demand that is strong enough to produce green hydrogen from renewables, we stand ready to be in that equation, to be part of that value chain.
To be the 1 building and owning the renewables, to sell the green electrons to the hydrogen producer, who would then take the green electrons to turn into green hydrogen. That may take us into some new geographies like the Middle East and Australia. Yeah. Just to put into perspective, I was told that if you need to make 1 million tons of hydrogen, green hydrogen, you need 14,000 megawatts of wind to serve that. To make 1 million tons of green hydrogen, right? It's not totally equivalent, but to put again the total demand for Singapore gas is 9-10 million tons of natural gas, right? The calorific value is not equal, but in terms of it cannot be that far off the tonnage. It's not...
1 million tons is if Singapore has to convert all to green hydrogen, we're talking about huge amount, massive amount of renewables, right? We don't need to go there. The point really is that there is that we are watching that and that could be a very big demand, source of demand for renewable energy capacity. It could take us to new geographies like Middle East and Australia, even though in our existing geographies, India, China, these are also big developments. Yeah. Coming back to Suki's point. First, you know, our... The markets that we currently operate and have grown well continues to be prolific.
We are also thinking in the long run with developments in green hydrogen, the need for renewables to produce green hydrogen, we could also be part of their value chain. I think, that's the gist of. Yeah.
In the interest of time, we'll take one last question from the floor. Sean.
Hi. Sean from Crisis. Just two questions for me. The first one is on the Conventional Energy in Singapore. Heard that it was contracted. Two-thirds of our capacity is contracted out for one to three years. I was wondering if you could share when the weighted average period for this contract. When, when will we, will we be more exposed to the spot pricing? That's the first question. The second question is on the Myanmar power plant. After this ECL provision that we had taken, is there a receivable balance that sits on that power plant asset? And if so, how much is it? Thanks.
To answer your first question, wouldn't be able to tell you what the weighted average is, but I think what I can comfortably tell you is that 2023 is covered. Okay? On your second question, you know, after taking that $78 million US dollars of write down, the remaining, you know, service concession receivables is probably in the region of about $180 million. Okay? Because, if you're seeing what we have shared with you, it's the, you know, the loan that is still outstanding for MingGen and also the book value.
Your service concession, typically, if we talk accounting, will be approximately the sum of those two, is largely the capital that we put in place, right? That will be covered by the concession. Given that, we have provided SGD 78 million, there's still about SGD 186, 80 million that is still outstanding.
Okay. We've now come to the end of today's briefing. Thank you very much for joining us today.
Thanks, everyone.