[SINGAPORE] Keppel reported on Thursday (Apr 24) a strong Q1 performance for 2025, with net profit rising more than 25 per cent year-on-year.
These profits, compared to Q1 in 2024, exclude legacy offshore and marine assets such as shares of Seatrium and legacy rigs that the company divested in 2024. Including these assets, profit would more than double due to reduced losses from the legacy portfolio.
Keppel’s shares climbed 3.6 per cent or S$0.23 after the announcement, reaching S$6.63 as at 10.37 am.
Recurring income accounted more than 80 per cent of net profit in the quarter. It was driven by stable results in the infrastructure segment, improved contributions from real estate and stronger asset management returns, the company said.
Keppel also reported asset monetisations of S$347 million to date in 2025, mostly from divestments of real estate assets in China and Vietnam. The company said it is also in advanced negotiations for an additional S$550 million in divestments to be finalised in upcoming months.
Asset management fees increased by 9 per cent year on year to S$96 million, the company reported, rising from S$88 million in Q1 of 2024. It raised S$1.6 billion in equity during the quarter – 3.5 times higher than the same period last year – and secured S$2 billion in capital commitments for new private funds, representing about S$4.9 billion in projected funds under management.
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In its infrastructure segment, the company reported steady earnings, including growth in long-term contract revenue by 31 per cent year on year, reaching S$6.3 billion. It also reported commissioning readiness in its Keppel Sakra Cogen Plant and that it had seeded a 36 per cent stake of its Keppel Merlimau Cogen Plant to Keppel Core Infrastructure Fund.
In its connectivity business segment, Keppel reported progress on the Bifrost subsea cable, reaching 92 per cent completion as of March. The cable system is expected to be operational in H2 2025. The company also expects the joint investment in subsea cable solutions provider Global Marine Group by Keppel Infrastructure Trust to enhance its connectivity business.
Facing tariff volatility, the company remained cautiously optimistic.
Loh Chin Hua, Keppel’s chief executive, said: “The direct impact of the US tariffs on Keppel is expected to be limited, as Keppel is not engaged in the manufacturing or export sectors.”
“However, a trade war would be highly detrimental to the international economy, and could affect us indirectly through higher supply chain costs, reduced market confidence, exchange rate risks and the pace of asset monetisation,” he cautioned.
Still, the company’s stronger recurring income would enhance its ability to navigate volatility, Loh said.
He also noted that the company is involved in meeting demand for alternative real assets that are supported by macrotrends, including energy transition, digitalisation and artificial intelligence.
