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Issuer Credit Research

Issuer Flash: Singapore Power Limited / SP Group

Issuer: Singapore Power | Document: Issuer Flash | Date: 2026-06-23 | Event: Fy2025 Results

Report date: 2026-06-23 Event date: 2025-06-12 Event title: FY2025 Audited Results

1. Flash Conclusion

Singapore Power Limited's FY2025 audited results support the stable high-grade view in the existing issuer summary rather than changing it. The disclosure confirms that SP Group remains a defensive Singapore regulated-utility credit, with profit including net regulatory deferral account (RDA) movements of S$1.16 billion, operating cash flow of S$2.32 billion, total equity of S$12.68 billion, and total debt obligations of S$4.15 billion at 31 March 2025. These figures are consistent with strong cash generation and conservative accounting leverage for a Temasek-owned network utility.

The more important credit interpretation is not that one year's profit improved, but that the core regulated network continued to generate enough operating cash flow to fund most of the heavy investment programme. Purchases of property, plant and equipment were S$1.60 billion and dividends paid were S$1.21 billion, so the annual result also confirms the key constraint identified in the summary: large capex and shareholder distributions absorb much of the cash-flow buffer. That is manageable at the current balance-sheet strength, but it is the main reason investors should continue watching RDA, capex recovery, dividends, and maturity refinancing together.

This flash uses 2025-06-12, the date on which the Singapore Power Limited consolidated financial statements were authorised for issue and the auditor's report was dated, as the event date. A separate public release date for the Annual Report page itself was not confirmed from the current source set. SP PowerAssets Limited's standalone statements, signed on 2025-05-23, are also important because SPPA is the regulated transmission asset owner, but the consolidated Singapore Power Limited statement is the more natural event anchor for group credit.

2. What Was Announced

SP Group's Annual Report 2025 page and audited consolidated financial statements cover the year ended 31 March 2025. The company reported net profit of S$1.16 billion on its annual report page, a 4.5% year-on-year increase, and stated that net revenue rose 7.5% to S$3.0 billion. In the audited statements, the comparable credit-relevant measure is "profit for the year and net movements in RDA balances", also S$1.16 billion, while statutory profit for the year before net RDA movement was S$1.41 billion.

The disclosure also confirmed that the five-year regulatory reset for electricity transmission and distribution and gas transportation was concluded for the period ending 31 March 2030. For bondholders, this is more important as a visibility point than as a short-term earnings catalyst. It supports the view that efficient network investment should be recoverable within a regulated framework, while leaving timing, RDA movement, and capex-review effects as monitoring points.

SP PowerAssets' standalone FY2025 statements show the strength of the regulated electricity transmission asset owner. SPPA reported revenue of S$2.19 billion, operating profit of S$1.07 billion, profit for the year and net RDA movement of S$582 million, operating cash flow of S$1.66 billion, and total debt obligations of S$2.12 billion. The standalone entity also had S$3.54 billion of loans from a related company. These figures reinforce that the regulated asset base is a central source of group credit strength, while also requiring analysis of group funding, related-party flows, and bond-level legal claims.

3. Credit Read-Through

The FY2025 results are credit supportive because they show a regulated network business that is still converting its franchise into cash. SP Group's operating cash flow of S$2.32 billion was about 0.56x total debt obligations, and cash of S$1.08 billion exceeded current debt obligations of S$938 million at the balance-sheet date. That cash / current-debt comparison is only a 31 March 2025 snapshot and does not confirm the later redemption or refinancing outcome for the November 2025 maturity. Total debt obligations / equity was about 0.33x. These accounting-based ratios are not substitutes for rating-agency adjusted metrics, but they are consistent with a credit profile that has meaningful headroom.

At the same time, the cash-flow result should not be read as unconstrained free cash flow. PPE purchases, intangible-asset purchases, and investment-property additions together exceeded S$1.7 billion, and dividends paid to the owner were S$1.21 billion. Operating cash flow broadly absorbed investment spending, but not investment spending plus dividends. This is not a sign of immediate credit stress; it is the normal tension of a regulated utility that must fund network resilience, Future Grid, smart meters, district cooling, EV charging, and other energy-transition investments while maintaining shareholder distributions.

RDA remains central to the interpretation. RDA balances reflect timing differences between financial-reporting revenue and revenue earned for regulatory purposes, not a simple cash-profit uplift. SPPA's accounting policy disclosure states that Use-of-System charges are approved by EMA for a five-year regulatory period and that capex variances may be reviewed by EMA and translated into later price adjustments. Therefore, the main credit question is not only whether profit is high in the current year, but whether allowed revenue, cash collection, capex, debt funding, and future tariff adjustments remain aligned.

The results do not remove the distinction between credit support and legal guarantee. SP Group remains a core Temasek-owned Singapore infrastructure issuer, and company materials cite Aa1 / AA+ ratings. However, the FY2025 financial statements do not turn SP Group Treasury bonds or SPPA bonds into Singapore government-guaranteed or Temasek-guaranteed obligations. The issuer summary's caution still stands: investors need to separate consolidated Singapore Power Limited credit strength, SP Group Treasury's Singapore Power Limited guarantee, SPPA's proximity to regulated assets, and the specific terms of each bond.

4. Key Numbers

The table mixes FY2025 flow items and 31 March 2025 balance-sheet items, unless otherwise stated.

Item FY2025 result Credit read-through
SP Group profit for the year and net RDA movements S$1.16bn Supports stable earnings view, but must be read with RDA and cash flow.
SP Group operating cash flow S$2.32bn Strong cash generation from the regulated utility group.
SP Group PPE purchases S$1.60bn Confirms a structurally heavy investment burden.
SP Group dividends paid S$1.21bn Absorbs much of the post-capex cash-flow buffer.
SP Group total debt obligations S$4.15bn Conservative against S$12.68bn equity, but maturity profile matters.
SP Group cash and cash equivalents S$1.08bn Above current debt at FY2025-end, before considering post-year-end maturity handling.
SPPA operating cash flow S$1.66bn Shows the regulated transmission asset owner remains a major cash-flow anchor.
SPPA total debt obligations S$2.12bn Manageable in isolation, but related-party loans and bond-level terms need separation.

5. What To Watch Next

The next major credit update should be the FY2026 financial statements or annual report. The most important confirmation items are cash, current debt, debt obligations, operating cash flow, capex, dividends, RDA balances, finance costs, and any change in the maturity ladder. In particular, the USD700 million notes due in November 2025 were current at 31 March 2025; the actual redemption, refinancing, or replacement funding outcome should be confirmed from later official disclosures rather than inferred.

Investors should also keep monitoring EMA tariff and regulatory materials, Network Costs, Market Support Services fee, RDA movement, and whether capex recovery remains predictable under the regulatory reset ending 31 March 2030. If capex rises materially faster than regulatory recovery or if dividends stay high while large maturities are refinanced at higher costs, the current strong headroom could narrow even without a deterioration in the core franchise.

Finally, full Moody's and S&P materials remain important. Company and programme materials cite Aa1 / AA+ ratings, but the current source set does not include full rating reports, standalone credit assessment, support-uplift rationale, outlook sensitivity, or downgrade triggers. Those items should be checked before using the ratings as more than a high-level confirmation of market access and support expectations.

6. Sources