JP Morgan points out Keppel guided that power spreads fell by around $10 before the Iran War but rose to $30 for shorter-term contracts, after the war started. At end-2025, 52% and 15% of power capacity were on 3-10 year and more than 10 year contracts, respectively. 28% of power contracts are on 1-3 year contracts, with just 5% on sub-1-year contracts. As at March 31, 30% of power contracts are 3-10 year terms with 15% on more than 10-year contracts, 47% on 1-3 years and 8% on less than 1 year.
In an update on Apr 23, JP Morgan retained its neutral rating on Keppel and its June 2027 price target of $12. JP Morgan had downgraded Keppel on March 26 due to the ongoing Iran War.
Keppel’s 1Q2026 on Apr 23 briefing had updates on the power business, divestment targets, Rigco which owns the legacy rigs, progress on funds under management (FUM) and the M1 divestment.
