Keppel Reports Net Profit of $790 Million in FY24

Backed by thriving data centre business, Singapore-based Keppel Ltd on Wednesday reported a net profit of $790 million from continuing operations for FY2024, 5% higher than the $750 million in 2023.

Thye net profit excluded the effects of its legacy offshore and marine (O&M) assets, thus translating into a Return on Equity of 10.1%, compared to 9.5% in FY23. All three segments – Infrastructure, Real Estate and Connectivity – were profitable in 2024.

The Infrastructure segment contributed 63% of Keppel’s net profit with stable recurring income, while the fast-growing Connectivity Segment added 17%, bolstered by a 45% earnings growth y-o-y. Recurring income of $567.45 million was stable y-o-y, making up 72% of last year’s net profit.

The cash position has also improved with a free cash inflow of $667.45 million in 2024 compared to an outflow of $284.46 million a year ago, Keppel said.

Announcing the company’s full-year results, Keppel CEO Loh Chin Hua highlighted how the company had transformed from a diverse conglomerate into a global asset manager and operator, seizing opportunities amidst the energy transition, digitalisation and the AI wave, and growing demand for alternative real assets.

Keppel’s multi-year transformation into a global asset manager and operator has yielded strong results. Amidst the volatile global environment, the company has delivered higher earnings backed by steady recurring income which anchored 72% of net profit in FY24.

“Our asset management fees grew strongly by 54% to $322.99 million as we selectively made investments and raised FUM from $40.74 billion to $65.19 billion. As we accelerate Keppel’s growth, leveraging our integrated ecosystem to provide connectivity and sustainability solutions that the world needs, we will deliver strong returns to both our shareholders and Limited Partners,” he added.

Global Expansion

Keppel has broadened its markets from Asia Pacific to Europe with the acquisition of Aermont Capital and apart from real estate, it has established itself in new asset classes such as energy, environmental infrastructure, data centres and private credit.

Since starting its asset monetisation programme in October 2020, Keppel has announced close to $5.19 billion in monetisation, including $1.11 billion in 2024. Keppel is also making good progress towards its interim target of $7.41 billion to $14.82 billion by end-2026.

Including the $3.48 billion divestment of Keppel Offshore & Marine in 2023, the total asset monetisation would be $8.67 billion to date.

Since starting its cost savings measures in early 2023, Keppel has achieved its target of $51.86 million in recurring annual run-rate cost savings, two years ahead of schedule. Keppel is now furthering its target by another $37.04 million per annum to reach $88.90 million in annual cost savings by end-2026.

Final Dividend

Over the past three years, Keppel has achieved an annualised Total Shareholder Return of 34.8% compared to the Straits Times Index’s 11.9%.

The Board has proposed a final cash dividend of $0.14 per share for FY24, to be paid to shareholders on 9 May 2025, after approval at the Company’s annual general meeting.