Keppel Ltd’s overall net profit for the third quarter of its 2026 financial year rose 20% year on year. Excluding non-core assets, net profit grew nearly 15%.
In a business update for the period ended September, released before the market opened on Thursday (29 October), Keppel said New Keppel, which excludes non-core assets earmarked for divestment and discontinued operations, posted a nearly 15% year-on-year increase in third-quarter net profit. This was driven by strong performance from its connectivity business and stable earnings from its infrastructure business.
For the first nine months of the year, New Keppel’s net profit rose 20% year on year.
The infrastructure segment’s integrated power business recorded a 7% year-on-year increase in earnings before interest, tax, depreciation and amortisation for the first nine months, driven mainly by contributions from the new Keppel Sakra Cogen Plant and improved operating efficiency.
The group said Keppel has been split into New Keppel and a non-core asset portfolio. Future ordinary dividends will be based on New Keppel’s earnings performance. The company plans to allocate 10% to 15% of the proceeds from non-core asset divestments to special dividends.
To give the market a clearer picture of Keppel’s performance, the group will regularly report changes in the gross asset value of the non-core asset portfolio that remains on its books.
Although the group’s overall third-quarter net profit rose, net profit for the first nine months fell 40%. This reflected a 4% decline in the gross asset value of its non-core asset portfolio, owing to impairments, depreciation, and operating and holding costs.
The group has announced about S$3.7 billion in non-core asset divestments so far this year, including the proposed sale of a 51% stake in Keppel South Central to Keppel REIT.
The group has received about S$940 million in proceeds from monetising non-core assets since the start of the year. The sale of the first batch of six legacy rigs to Keppel Offshore Fund is expected to be completed this year, bringing in approximately S$600 million in additional proceeds.
Keppel chief executive Loh Chin Hua said, “Our continued execution of our strategy as a global asset manager and operator focused on critical energy and digital infrastructure drove New Keppel’s sustained strong performance in the third quarter and first nine months of 2026.
“Despite an uncertain market environment, the total value of non-core asset monetisation announced this year has already exceeded our annual target of S$2 billion to S$3 billion. This will unlock capital to support business growth, reduce debt and reward shareholders.”
Keppel shares rose 0.3% to close at S$10.13 on Wednesday (28 October).
