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Keppel Corporation reported a net profit increase of over 25% for the nine months ended September, excluding non-core assets slated for divestment such as legacy offshore, marine, and property holdings. Including discontinued operations, overall profit still rose more than 5%, despite a one-time accounting loss from the planned sale of M1 Limited's telecom business. The group's recurring income grew nearly 15%, led by strong results in its infrastructure division and rising contributions from decarbonisation initiatives. Its real estate arm monetised about S$830 million in assets, taking total realisations to S$14 billion since 2020. With an asset-light strategy and new monetisation targets above S$500 million, Keppel remains well positioned for sustained growth.
Singapore's Keppel Corporation revealed that for the nine-month period ended September it achieved a net profit increase of over 25 per cent, excluding its non-core portfolio earmarked for divestment, which mainly comprised legacy offshore and marine assets as well as property-related holdings not aligned with its asset-light strategy. The figure also excludes contributions from its proposed sale of the telecom business of M1 Limited to SIMBA Telecom. Advertisement
When discontinued operations were included, the overall net profit still increased by more than 5 per cent, despite an accounting loss arising from the aforementioned telco divestment. The group's shares closed 1.6 per cent higher at a record S$10.050, marking an eighth straight session of gains.
Keppel said its recurring income "mainly from asset management and operating businesses" rose close to 15 per cent during the nine-month period, reflecting the success of its strategy to pivot away from traditional offshore and marine operations. Its infrastructure division enjoyed stronger performance, driven by earnings from its integrated power business and growing contributions from decarbonisation and sustainability solutions.
Meanwhile, its real-estate business, with footprints in China, Singapore and Vietnam, contributed to this performance with the monetisation of about S$830 million of assets during the period under review. The asset-monetisation programme launched in October 2020 has so far amassed around S$14 billion (USD 10.82 billion), and the firm indicated it is targeting more than another S$500 million in such deals in the coming months.
Keppel Corporation's robust results for the first three quarters reflect a decisive shift in business mix and monetisation strategy, as its asset-light focus gains traction across infrastructure, real-estate and asset-management lines. With recurring income on the rise and further monetisation deals in the pipeline, the firm appears well set to maintain momentum into the remainder of the year. However, the success of its performance now hinges on how quickly and effectively the targeted S$500 million-plus in asset sales are concluded and whether the broader macro-environment supports sustained growth.
Source: Reuters
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