Overview Key strengths Key risks Predictable cash flow, underpinned by mostly regulated assets with a strong regulatory framework. Sizable increase in capital expenditure (capex) likely to result in negative free operating cash flow. Monopoly over Singapore's power transmission and distribution (T&D) networks. Higher spending in new markets and business segments could increase execution and regulatory risks. Significant financial flexibility and headroom with modest leverage. Earnings and geographical concentration in Singapore, partly mitigated by investments in regulated Australian T&D assets. We estimate the company will maintain a strong ratio of funds from operations (FFO) to debt of 50%-100%, and debt-to-EBITDA ratio of below 2.0x in fiscal years 2024-2026. These ratios have significant headroom to our downside triggers of 23% and 3.0x,
