| Imagery Source: Keppel Ltd |
| Information Source: Keppel Ltd |
- The New Keppel’s net profit surges 25% yoy to $431 million in 1H 2025:
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- 1H 2025 net profit expanded by 25% yoy, excluding Non-Core Portfolio for Divestment, with strong and steady Infrastructure earnings and improved Real Estate contributions.
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- Recurring income rose 7% yoy to $444 million in 1H 2025.
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- Annualised Return on Equity reached 15.4% in 1H 2025, up from 13.2% in 1H 2024.
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- Good momentum towards achieving Vision 2030 interim targets:
Funds under Management (FUM) grew to $91 billion at the end of June 2025.
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- Announced $915 million in asset monetisation in the year to date, with another over $500 million of potential divestments under negotiation.
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- Declares interim cash dividend of 15.0 cts/share and a $500 million Share Buyback Programme.
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| Global asset manager and operator Keppel Ltd. (Keppel) reported a net profit of $431 million for the first half of 2025, surging 25% from $345 million in 1H 2024, excluding the Non-Core Portfolio for Divestment. The strong performance for the period was driven by resilient earnings in the Infrastructure Segment and higher contributions from Real Estate. |
| On the back of its asset-light strategy and focus on growing recurring income, the New Keppel achieved an annualised Return on Equity (ROE) of 15.4% in 1H 2025, improving from 13.2% in 1H 2024, while its recurring income grew 7% year-on-year (yoy) to $444 million in 1H 2025, compared to $414 million in 1H 2024. |
| The Company has identified for divestment a portfolio of non-core assets with a carrying value of $14.4 billion as at 30 June 2025. These non-core assets are no longer aligned with Keppel’s asset-light, recurring income-focused strategy, even though many of these non-core assets are profitable, with assets such as the Company’s residential landbank carried at historical costs. Including the effects of the Non-Core Portfolio for Divestment, the Company’s overall net profit for 1H 2025 rose 24% yoy to $378 million, up from $304 million in 1H 2024, underscoring the strength of Keppel’s core business. |
| In his speech announcing Keppel's 1H 2025 results, Mr Loh Chin Hua, CEO of Keppel, highlighted the Company’s progress towards Vision 2030, which positions the New Keppel as a leading global asset manager and operator focused on fast-growing sectors across sustainability and digital infrastructure. |
| Mr Loh said, “We have achieved strong results in 1H 2025 and are on track to realise Vision 2030. Today, the New Keppel is delivering strong earnings from only a part of our 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. Looking ahead, we will focus on accelerating the growth of the New Keppel and monetising the $14.4 billion non-core portfolio, which includes $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.” |
| As of end-June 2025, FUM expanded to $91 billion, underpinned by active capital raising efforts, while asset management fees amounted to $195 million in 1H 2025. Keppel’s private funds, such as those for data centres, education assets and sustainable urban renewal, have also gained strong traction with global Limited Partners, raising a combined FUM of $4.7 billion year to date. |
| With intensified efforts in asset monetisation, Keppel announced the divestment of about $915 million of assets in the year to date, raising its cumulative total to about $7.8 billion since the programme began in October 2020. The Company remains focused on optimising the speed of divestment and exit value of Keppel’s non-core assets and expects to finalise negotiations for another over $500 million worth of transactions in 2H 2025. |
| Since early 2023, Keppel has leveraged digitalisation and AI to optimise costs and improve efficiency, achieving $88 million in recurring annual run-rate cost savings, advancing toward its target of $120 million per annum by end-2026. |
| Growing as a data-driven organisation, the Company leverages its secure, Keppel-wide data lake to accelerate decision making and analysis, building on SaaS platforms for greater speed and agility. Using its proprietary Keppel AI Operating System and in-house AI factory, the Company is creating various agentic AI models to drive efficiency and AI adoption across asset management, investments and operations.
Dividends and share buyback programme |
| In appreciation of the support and confidence of Keppel shareholders, the Board has approved an interim cash dividend of 15.0 cents per share for 1H 2025. This interim dividend, which will be paid to shareholders on 21 August 2025, is the same as last year’s interim dividend of 15.0 cents per share. |
| On the back of Keppel’s strong growth trajectory and progress in asset monetisation, Keppel also announced today a $500 million Share Buyback Programme that will see the Company progressively repurchasing its shares from the open market. The 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. |
| For the full document, click the link below |
| Keppel Ltd |
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