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Singapore-based Keppel Ltd reported a slight decline in its first-quarter net profit, mainly due to weaker performance in its real estate division. While its infrastructure and connectivity businesses showed improvement, these gains were offset by lower valuation and divestment contributions from property assets compared to last year. The company recorded a 13 per cent rise in asset management fees to SGD 108 million (USD 84.67 million). Keppel also indicated limited direct exposure to Middle East tensions but flagged potential risks to energy security and fundraising if disruptions continue. It has monetised SGD 385 million worth of assets so far this year.
Singapore-based Keppel Ltd reported a marginal decline in its first-quarter net profit, excluding non-core assets held for divestment and discontinued operations, due to lower contribution from its real estate business. Advertisement
The company indicated that improved performance in its infrastructure and connectivity segments helped support overall earnings. However, this was offset by weaker results from the real estate division, which had seen higher valuation gains and divestments in the corresponding period last year, creating a higher base.
Keppel, which has transitioned from its origins as a shipbuilding yard into a global asset manager and operator, reported a 13 per cent year-on-year increase in asset management fees, which rose to SGD 108 million (USD 84.67 million) during the quarter. This reflects continued growth in its asset-light strategy and focus on recurring income streams.
On the geopolitical front, the company stated that it has limited direct exposure to the ongoing Middle East conflict and has not seen any material impact so far. However, it noted that any prolonged disruption, particularly in gas supply or a wider energy crunch, could affect energy security and in turn influence its fundraising activities and asset monetisation plans.
Keppel further clarified that its gas sourcing remains diversified, with the majority of supply coming through piped natural gas from Malaysia, along with some international liquefied natural gas cargoes. This diversification is expected to help mitigate immediate supply risks.
As part of its ongoing capital recycling strategy, the company has monetised assets worth SGD 385 million so far this year. This forms part of its broader plan to divest non-core assets in the range of SGD 2 billion to SGD 3 billion over the full year, supporting balance sheet optimisation and reinvestment into core growth areas.
In recent years, Keppel has been actively reshaping its portfolio by reducing exposure to traditional real estate cycles and increasing focus on infrastructure, energy transition and asset management platforms. This shift has been aimed at stabilising earnings and reducing volatility linked to property market movements.
Source Reuters
5th Jun, 2025
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