In its 1QFY2026 business updates for the three months to Mar 31, net profit for the New Keppel, excluding the non-core portfolio for divestment and discontinued operations was slightly lower y-o-y.
Stronger performance in the infrastructure and connectivity segments were offset by lower contributions from the real estate segment, which had benefitted from higher valuation and divestment gains in 1QFY2025. Recurring income improved slightly y-o-y, supported by higher income from operations and stable asset management net profit.
Business updates in the first quarter do not include a full financial statement. However, Keppel announced positive free cash inflow in 1Q2026 compared to an outflow in 1Q2025. The company recorded cash inflows from both operating and investing activities, compared to outflows in 1Q2025.
In line with Keppel’s business model, the majority of investments under the New Keppel comprises sponsor stakes in Keppel’s private funds, REITs and Trust, as well as coinvestments alongside them.
The company receives divestment proceeds related to and distributions from such sponsor stakes and co-investments. This inflow was almost three quarters of the amount received for FY2025.
Year-to-date, Keppel announced the monetisation of $385 million in non-core assets, including i12 Katong in Singapore. This brings Keppel’s cumulative asset monetisation announced since October 2020 to about $14.9 billion, including the divestment of Keppel Offshore & Marine in 2023 and the proposed sale of M1’s telco business.
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The company is actively engaging potential investors and buyers with a target to monetise S$2-S$3 billion of non-core assets in 2026. Year to date, Keppel also completed and realised asset monetisation transactions amounting to about $347 million.
Separately, Keppel has sold its entire 5% stake in Seatrium as at April 1, realising a total value of $430 million in cash, based on a weighted average price of $2.52 per share, and $1 million in dividends received from Seatrium in 2025.
“Keppel has limited direct exposure to the Middle East, and we have not seen any notable impact on the company thus far. Our integrated power business has been resilient, supported by diversified gas supply and various mechanisms to shield against fuel cost fluctuations," says Keppel's CEO Loh Chin Hua.
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"That said, if there is a prolonged disruption to gas supply and an energy crunch, this could have broader impacts on energy security and the macroeconomic environment, which may in turn affect Keppel, including on fundraising and asset monetisation. We are monitoring the situation closely and will calibrate our response accordingly,” he adds.
Keppel shares closed $12.03 on April 22, up 0.33% for the day, extending a gain of just over 16% year to date.
