Keppel H1 profit rises 24.2% to S$377.7 million; seeks to monetise S$14.4 billion non-core assets
The profit growth came even as Keppel's top line fell 5.2 per cent to S$3.1 billion. Revenue from the infrastructure segment was down by 12 per cent to S$2 billion, with lower net generation in the integrated power business.
However, revenue from the real estate segment rose by S$29 million – to S$95 million – on the back of contributions from an India office project acquired last year, as well as a senior living operator in the US that was consolidated in March.
Telco M1 also recorded higher enterprise revenue, with contributions from the newly acquired ADG in Vietnam, as well as higher handset and equipment sales, even as mobile revenue fell.
Keppel announced an interim dividend of S$0.15 per share – unchanged from the year-ago period, as well as a S$500 million share buyback programme. The repurchased shares will be used in part for the annual vesting of employee share plans, and as possible currency for future merger and acquisition activities.
In its earnings statement, Keppel announced that it has identified a S$14.4 billion portfolio of non-core assets for divestment. Excluding the impact of this portfolio, its net profit would have risen 25 per cent to S$431 million.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The divestment portfolio comprises legacy offshore and marine assets, residential landbank, selected property developments and investment properties, and S$2.9 billion of embedded cash and receivables. It also includes hospitality and logistics assets and other non-core investments.
There is 'significant value' to be unlocked from releasing the part of the balance sheet that is not required by the 'New Keppel', said the company's chief executive Loh Chin Hua in an earnings statement.
The company also announced the divestment of S$915 million of assets in the year to date, raising the cumulative total to S$7.8 billion since the programme began in October 2020.
The non-core assets are no longer aligned with Keppel's asset-light, recurring income-focused strategy, even though many are profitable, such as residential landbanks carried at historical costs.
Keppel's funds under management (FUM) stood at S$91 billion as at end-June, while asset management fees amounted to S$195 million.
Keppel's private funds – such as those for data centres, education assets and sustainable urban renewal – have raised a combined FUM of S$4.7 billion year to date.
Keppel shares ended Wednesday at S$8.18, up S$0.02 or 0.3 per cent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 days ago
- Business Times
Keppel posts 24.2% rise in H1 profit to S$377.7 million, seeks to monetise S$14.4 billion non-core assets
[SINGAPORE] Asset manager Keppel saw net profit rise 24.2 per cent on the year to S$377.7 million for the first half ended Jun 30, driven by growth in its real estate segment. This translates to an earnings per share of S$0.208, up 23.1 per cent from S$0.169 a year earlier. The profit growth came even as Keppel's top line fell 5.2 per cent to S$3.1 billion. Revenue from the infrastructure segment was down by 12 per cent to S$2 billion, with lower net generation in the integrated power business. The segment's net profit fell 4.9 per cent to S$346.6 million. Performance was lifted by the real estate segment, which posted a S$97.6 million net profit, reversing the year-ago S$19.6 million net loss. Revenue was up 45 per cent to S$94.8 million – on the back of contributions from an India office project acquired last year, as well as a senior living operator in the United States that was consolidated in March Revenue also rose in the connectivity segment – which includes data centres and telco M1 – by 13.9 per cent to S$742.4 million. Keppel's data centre business benefited from higher facility management revenue, while M1 recorded higher enterprise revenue, with contributions from the newly acquired ADG in Vietnam. It also enjoyed higher handset and equipment sales, even as mobile revenue fell. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, the segment's net profit fell 16.9 per cent to S$57.5 million, with lower overall earnings from M1, and lower valuation gains on sponsor stakes in private funds. Keppel announced an interim dividend of S$0.15 per share – unchanged from the year-ago period, as well as a S$500 million share buyback programme. The repurchased shares will be used in part for the annual vesting of employee share plans, and as possible currency for future merger and acquisition activities. Keppel's upcoming Sakra Cogen Plant is expected to contribute to earnings growth. PHOTO: KEPPEL S$14.4 billion divestment portfolio Separately, Keppel has identified a portfolio of non-core assets with a carrying value of S$14.4 billion to be 'substantially monetised' by 2030. The divestment portfolio comprises legacy offshore and marine assets, residential landbank, selected property developments and investment properties, and S$2.9 billion of embedded cash and receivables. It also includes hospitality and logistics assets and other non-core investments. The portfolio recorded a net loss of S$53.3 million in H1, deeper than the year ago S$40.5 million loss. Excluding the impact of this portfolio, Keppel's net profit would have risen 25 per cent to S$431 million. There is significant value to be unlocked from releasing the part of the balance sheet that is not required by the 'New Keppel', said the company's chief executive Loh Chin Hua. Chief executive Loh Chin Hua (centre) explaining the 'New Keppel' strategy at the earnings briefing on Thursday. PHOTO: KEPPEL 'As we accelerate the growth of 'New Keppel', we expect that the market will re-rate our stock price and accord us a growth multiple,' he said at an earnings briefing on Thursday (Jul 31). 'In addition, the net asset value of the non-core portfolio, which we will monetise over time, should also carry further value.' Keppel has divested S$915 million of assets in the year to date, raising the cumulative total to S$7.8 billion since such efforts began in October 2020. Loh noted that the non-core assets are no longer aligned with Keppel's asset-light, recurring income-focused strategy, even though many are profitable. The assets include residential landbanks carried at historical costs. 'Monetising the substantial non-core portfolio, whose carrying value is larger than our gross debt, will give us ample opportunity over time to reduce debt, fund growth for the 'New Keppel' and return capital to shareholders,' said Loh. With the asset-light strategy, return on equity is expected to be 'significantly above' 15 per cent, he added. Asked which peers 'New Keppel' could be compared to, Loh cited global asset management firms Brookfield, KKR, BlackRock and Blackstone – albeit noting that Keppel is unique in having both asset management and operations. M1 under pressure Asked about plans for M1, Loh said that Keppel is open to divestment, but looking more at potential monetisation of the consumer mobile side of the business. The market is under 'severe competitive pressure' with four operators and about seven mobile virtual network operators, noted Manjot Singh Mann, chief executive of Keppel's connectivity segment. 'It's an overcrowded market, and we are seeing a lot of SIM-only plans replacing contract plans, and that is why there is a bit of an ARPU dilution as well,' he said, referring to average revenue per user. That said, M1 is still 'fighting hard' on the consumer business, while also growing on the enterprise front, said Mann. He sees cloud solutions having a 'huge amount of synergy' with Keppel's data centres. Asean power grid, green projects Growth is also expected in the infrastructure business in the next few years, with one gigawatt of new power capacity coming onstream. This is from the 600 megawatt (MW) Keppel Sakra Cogen Plant in H1 2026 and another potential 300 to 500 MW of renewable energy imports from 2028. Opportunities in the development of the Asean power grid are 'very promising' and Keppel is a 'frontrunner', said Cindy Lim, chief executive of the infrastructure business. Keppel's floating data centre in Singapore is awaiting final approval from the authorities. PHOTO: KEPPEL 'There's a lot of synergy for us to bring low-carbon and renewable power to capture the connectivity space, specifically the high demand for AI data centres,' she added. Separately, the real estate division will focus on sustainable urban renewal solutions across five projects with a combined asset value of S$1.8 billion, to focus on both sustainability and investment returns. In the data sector division, Keppel is awaiting final approval from the authorities for its 25 MW floating data centre in Singapore, with construction expected to start in Q4 and finish by end-2028. The Bifrost Cable System – which is set to connect South-east Asia to North America – has completed marine cable laying operations and is expected to be ready for service by end-September. Looking ahead, Keppel is in the process of negotiating over S$500 million worth of real estate and connectivity asset monetisation transactions, which it hopes to finalise before the year-end, said Loh. Keppel's funds under management (FUM) stood at S$91 billion as at end-June, while asset management fees amounted to S$195 million. The company is confident of achieving its S$100 billion FUM target by end-2026. Its private funds – such as those for data centres, education assets and sustainable urban renewal – have raised a combined FUM of S$4.7 billion year to date. Keppel shares traded at S$8.61 as at 12.35 pm on Thursday, up S$0.43 or 5.3 per cent.
Independent Singapore
2 days ago
- Independent Singapore
Keppel announces S$500M share buyback programme after 24.2% YoY earnings increase to S$377.7M in H1 FY2025
Photo: Facebook/Desmond Lee SINGAPORE: Keppel Corporation has announced a share buyback programme of up to S$500 million after reporting higher earnings for the first half of FY2025 (H1 FY2025). Earnings rose 24.2% year-on-year to S$377.7 million for the six months ended June, although revenue fell 5.2% to S$3.06 billion, partly due to lower utilities sales, as reported by The Edge Singapore . In a media release on Thursday (July 31), the company said, 'Shares repurchased will be held as treasury shares, which will be used in part for the annual vesting of employee share plans, and as possible currency for future merger and acquisition activities.' The company also posted a higher net profit of S$431 million, up 25% YoY compared to S$345 million from the same period last year, excluding non-core portfolio assets held for divestment, thanks to steady earnings in its infrastructure segment and stronger real estate contributions. CEO Loh Chin Hua said, 'By reporting the non-core portfolio separately, we aim to provide greater transparency on our performance as a global asset manager and operator.' Recurring income also rose by 7% to S$444 million. As of end-June 2025, the company's funds under management (FUM) grew to S$91 billion amid active capital raising efforts, while asset management fees reached S$195 million. Keppel also announced S$915 million worth of asset sales so far this year, with over S$500 million in potential divestments currently being negotiated. The group plans to maintain its interim dividend at 15 cents per share, the same as last year. /TISG Read also: Keppel's Bifrost Cable System gets regulatory approval for 2025 launch connecting Singapore to North America () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Straits Times
3 days ago
- Straits Times
Keppel first-half profit up 24.2%, announces $500m share buyback; shares jump 5%
Sign up now: Get ST's newsletters delivered to your inbox Keppel CEO Loh Chin Hua said the group's focus is on accelerating the growth of New Keppel and monetising the $14.4 billion in non-core assets. SINGAPORE - Keppel on July 31 said net profit rose 24.2 per cent year on year to $377.7 million for the first half of 2025, driven by 'strong and steady' infrastructure and real estate earnings. The asset manager also announced an interim cash dividend of 15 cents per share, the same as a year ago, and a $500 million share b uyback programme. The repurchased shares will be used in part for the annual vesting of employee share plans and possibly for future merger and acquisition activities. Keppel shares rallied 5 per cent, or 41 cents, to $8.59 as at 11.18an, with 10.2 million units changing hands The company introduced a new reporting metric - it dubbed 'New Keppel' - which excludes non-core portfolio assets held for divestment. Under this metric, its first-half earnings rose 25 per cent year on year to $431 million. Its earnings growth came despite a 5.2 per cent drop in revenue to $3.06 billion, partly due to lower sales of utilities. Group recurring income rose by 7 per cent to $444 million, while return on equity improved to 15.4 per cent - up from 13.2 per cent a year earlier. Top stories Swipe. Select. Stay informed. Asia US-Malaysia tariff deal expected after Trump-Anwar phone call on eve of Aug 1 deadline Asia Trump says US will set 15% tariff on South Korean imports under new deal Singapore Driver in 2024 Tampines crash that killed 2 set to plead guilty in October Multimedia 60 years, 60 items: A National Day game challenge Singapore Wegovy and beyond: Will weight-loss drugs change the way people look at obesity? Singapore $10 million Toto results to be announced on July 31, after no winners in last 3 draws Business US Fed holds rates steady despite Trump's pressure, with two governors dissenting Singapore Escape, discover, connect: Where new memories are made Keppel said its transformation under its 'Vision 2030' roadmap, announced in 2020, continues to gather pace, focusing on four key business areas - energy and environment, urban development, connectivity and asset management. Its funds under management expanded to $91 billion as of end-June, while asset management fees amounted to $195 million. Private funds digital infrastructure and sustainable urban renewal have also gained strong traction with global limited partners, raising $4.7 billion year to date. This growth was supported by capital raising efforts and continued traction in private funds focused on digital infrastructure and sustainable urban renewal, which collectively raised $4.7 billion year-to-date. Chief executive Loh Chin Hua, at a media briefing on July 31 , described the results as 'strong', derived from only a part of the group's balance sheet. 'This leaves significant value to be unlocked from releasing that part of the balance sheet that is not required by the New Keppel. By reporting the non-core portfolio separately, we aim to provide greater transparency on our performance as a global asset manager and operator.' Mr Loh said the group's focus is on accelerating the growth of New Keppel and monetising the $14.4 billion in non-core assets , which include $2.9 billion of embedded cash and receivables. 'This positions Keppel for a further re-rating as we unlock capital for growth, to reduce debt and to reward our shareholders.' Year to date, the group has announced $915 million in asset monetisation, raising its cumulative total to $7.8 billion since the programme commenced in 2020. It is also in negotiations to divest another $500 million in the second half of the year.
