CGS International analysts Lim Siew Khee and Kenneth Tan kept their “add” call as they cheer Keppel’s transition into becoming a streamlined, asset-light global asset manager.
Analysts have remained positive of Keppel Limited’s prospects after the company reported earnings of $940 million for the FY2024 ended Dec 31, 2024. The company’s overall bottomline fell by 76.9% y-o-y but it was due to the absence of divestment gains in FY2023, most notably from the sale of Keppel’s legacy offshore and marine (O&M) segment.
Earnings from continuing operations in FY2024 fell by 6% y-o-y to $832 million. Keppel’s legacy O&M assets and discontinued operations posted a net loss of $124 million compared to the $3.1 billion net profit in FY2023. The net loss was due to the value losses from Keppel’s stake in Seatrium compared to gains in FY2023 and higher financing costs and amortisation of Day 1 fair value loss on notes receivables as the Asset Co transaction was completed at the end of February 2023.
