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Keppel Corp books record 1H earnings on divestment as new strategy gains traction

Felicia Tan
Felicia Tan • 4 min read
Keppel Corp books record 1H earnings on divestment as new strategy gains traction
Loh says Keppel has been prudently holding back on investments but sees interesting opportunities coming up / Photo: Albert Chua
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Keppel Corp’s new strategy to capture more recurring income is showing up in its results which was announced on July 27. In 1HFY2023 ended June, recurring income increased 62% y-o-y to $340 million, making up three-quarters of total earnings.

The growth was driven by higher operating income from Keppel’s infrastructure division, which is going big on renewables, clean energy and decarbonisation solutions. As recent as 1HFY2022, the proportion of recurring income was just under half.

As a whole, Keppel reported record earnings of $3.6 billion for 1HFY2023 versus $498 million recorded a year earlier as the company booked a gain of $3.3 billion from the sale of its offshore and marine unit. Excluding one-offs, earnings would have increased 3% y-o-y to $445 million. Revenue in the same period rose 11% y-o-y to $3.72 billion, with higher contributions from its infrastructure and connectivity segments.

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