Sembcorp Industries Ltd (SGX:U96) saw its stock price soar by 3.09% in intraday trading on Thursday, as investors reacted positively to two significant announcements from the company. The energy and urban development company has not only increased its dividend but also revealed a strategic partnership for a major green energy project.

In a move that has pleased shareholders, Sembcorp Industries announced it will be raising its dividend to SGD0.17, up from last year's payout. This increase will bring the dividend yield to an attractive 3.7%, aligning with the industry average. The company's strong earnings coverage suggests that this dividend hike is well-supported by its financial performance, with analysts projecting a 32.3% growth in earnings per share for the coming year.

Adding to the positive sentiment, Sembcorp Industries disclosed a partnership with Sarawak Energy and Italian subsea cable maker Prysmian for a significant hydropower project. This venture aims to supply Singapore with 1 gigawatt of green electricity from the Malaysian state of Sarawak. The collaboration, which also involves SP PowerInterconnect, a subsidiary of Singapore's SP Group, underscores Sembcorp's commitment to expanding its renewable energy portfolio and tapping into the growing demand for clean energy in the region.

Investors appear to be reacting favorably to both the immediate benefit of increased dividends and the long-term growth potential offered by the green energy project. The stock's surge reflects confidence in Sembcorp Industries' strategic direction and its ability to balance shareholder returns with sustainable business expansion in the evolving energy landscape.