Keppel Ltd reported a slight
decline in first-quarter net profit on April 23, as a downturn in
its real estate division overshadowed robust growth in its
infrastructure and connectivity segments, Channel News
Asia reports.
The results highlight the ongoing
transformation of the former conglomerate into a global asset
manager. While asset management fees climbed 13% year-on-year to
SGD108mn ($84.7mn), the group’s real estate arm suffered from a
high base effect, following significant valuation and divestment
gains recorded during the same period last year.
Despite the earnings dip, Keppel
is accelerating its capital recycling strategy. The firm has
monetised SGD385mn in non-core assets so far in 2026, making steady
progress toward its annual divestment target of SGD2bn to
SGD3bn.
'Limited direct exposure to the
Middle East conflict has meant no notable impact so far,' Keppel
said in its quarterly update. However, the company warned that a
prolonged regional conflict could lead to a global energy crunch,
potentially impacting fundraising efforts and macroeconomic
stability.
To mitigate energy security
risks, Keppel noted that its gas supply remains highly diversified.
The firm primarily relies on piped natural gas from Malaysia,
supplemented by international liquefied natural gas (LNG) cargoes,
insulating it from the immediate volatility seen in the spot market
earlier this month.
The company's pivot toward
recurring income streams remains on track, with its infrastructure
segment benefiting from increased demand for sustainable energy
solutions and data centres. Keppel’s connectivity division also
showed resilience, bolstered by the expansion of its subsea cable
networks and logistics infrastructure across Asia.
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