Keppel posts 20% rise in Q3 net profit; New Keppel earnings up 15%
9M profit tumbles 40% due to slide in value of non-core assets remaining on the books
[SINGAPORE] Asset manager and operator Keppel reported a 20 per cent increase in its net profit for the third quarter ended Sep 30.
Excluding its non-core portfolio for divestment and discontinued operations, net profit for “New Keppel” – which is the term the company uses to refer to its continuing core business – increased by close to 15 per cent year on year for the quarter.
The increase in New Keppel’s profit was underpinned by stronger performance in its connectivity segment and steady earnings from its infrastructure segment, said the company in a business update on Thursday (Oct 29).
As for its fund management business, the company announced that it has added S$19.5 billion worth of new funds under management year-to-date. About half of the funds came from its infrastructure and connectivity fund strategies, reflecting growing investor demand for energy and digital infrastructure investments.
Nine-month performance
Keppel’s net profit for the first nine months of 2026 fell 40 per cent year on year.
The drop was due to a 4 per cent reduction in its gross asset value of non-core assets that remained on the books of Keppel. The gross asset value fell due to impairments, depreciation, operating and holding costs.
However, New Keppel posted a net profit of over 20 per cent from a year earlier for the nine months ended Sep 30. The rise was led by stronger performance by the infrastructure and connectivity segments.
Said Loh Chin Hua, CEO of Keppel: “The New Keppel continued to perform strongly in both Q3 and 9M 2026, as we continued to execute our strategy as a global asset manager and operator focused on essential energy and digital infrastructure.”
Recurring income for the nine-month period rose more than 10 per cent year on year, driven by improvements across its asset management businesses, its sponsor stakes and co-investments, and the company’s operating platform.
In the first nine months of 2026, Keppel generated S$354 million in asset management fees, an increase of 18 per cent year on year. It also completed about S$4.5 billion in acquisitions and S$3.5 billion in divestments.
Its infrastructure division recorded stronger year-on-year performance for the first nine months. Its integrated power business saw a 7 per cent year-on-year growth in its earnings before interest, taxes, depreciation and amortisation (Ebitda), driven by contributions from its 600 megawatt Keppel Sakra Cogen Plant which began operations in May 2026.
Its connectivity segment, which includes its data centre portfolio, remains underpinned by a focus on power constrained markets. The segment also continued to grow its technology solutions business, whose revenue expanded to over S$900 million, and Ebitda grew 110 per cent year on year for 9M 2026.
Its real estate division announced over S$2.4 billion of non-core property monetisation in the year to date, including the proposed divestment of a 51 per cent interest in Keppel South Central to Keppel Reit.
Asset monetisation
Keppel said it made strong progress in the monetisation of its non-core portfolio, with about S$3.7 billion planned for divestment in 2026 to date.
This includes the proposed divestment of a 51 per cent stake in Keppel South Central to Keppel real estate investment trust.
It has realised S$940 million over the year so far, with another approximately S$600 million expected by the end of the year upon completion of the divestment of the first six legacy rigs to Keppel Offshore Fund, bringing the likely total for 2026 to more than S$1.5 billion. It has previously set a full-year target of between S$2 billion and S$3 billion.
With the bifurcation of Keppel into the New Keppel and its non-core portfolio, the company said that the ordinary dividends will be determined by earnings from the New Keppel. At the same time, the company aims to pay special dividends of 10 to 15 per cent from the realised proceeds from non-core asset monetisation.
To give the market greater clarity on Keppel’s performance, the company will also report changes in the gross asset value of the non-core portfolio that remains on its books.
Natural gas supply
Loh said the company is monitoring the situation regarding Indonesia’s move to cut natural gas exports to Singapore, and that it will work with stakeholders to provide reliable energy supply.
“We have a diversified gas portfolio of liquefied natural gas and piped natural gas. And our piped natural gas is sourced from Malaysia… Beyond gas importation, we are supporting Singapore’s long-term energy resilience by helping to diversify its energy sources,” he said during a media briefing on Thursday.
He cited Keppel’s recent appointment as one of three power generation companies appointed by the Energy Market Authority to supply biomethane as an example of how the company will further support the development of an additional low-carbon fuel supply.
Piped natural gas make up more than half of Keppel’s gas supply, with the rest being long-term liquefied natural gas contracts, said Cindy Lim, CEO of Keppel’s infrastructure division.
“Of course, during uncertain or unplanned disruptions, and or when there’s opportunity in the spot market that we see gas optimisation, we will also optimally procure,” she said.
In response to a question on when its piped natural gas contracts expires, Lim declined to comment, citing commercial sensitivity, though she added that the contracts will last at least till the end of 2030.
M1 sale
As for whether the Infocomm Media Development Authority of Singapore’s continued investigation into Simba’s misuse of the telecommunications spectrum might affect Keppel’s plan to sell M1, Loh said that the company is monitoring the developments as the situation evolves.
Keppel’s initial plan to sell M1 to Simba – as part of its non-core portfolio monetisation strategy – was scuppered after the regulator announced that it halted its assessment of the proposed merger back in May 2026 to investigate the spectrum misuse.
As for Keppel’s discussions with StarHub on a potential M1 deal, Loh said that any transaction could be complex, which would require both shareholders and regulatory approval, if entered into.
“There is no assurance that a definitive agreement will or will not materialise, and I think… it’s incumbent on us to continue to remain focused on strengthening M1’s performance,” he added.
Shares of Keppel ended 1.1 per cent or S$0.11 higher at S$10.24 on Thursday.
