Keppel vows to use part of cash unlocked in asset monetisation to reward shareholders
Net profit for Keppel’s core business rises over 25% in 9M FY2025
[SINGAPORE] Global asset manager and operator Keppel on Thursday (Oct 30) said it would use part of the cash unlocked from its ongoing asset monetisation – including the proposed divestment of M1’s telco business – to reward shareholders.
In the first nine months of FY2025, Keppel announced the monetisation of about S$2.4 billion in assets, including the proposed M1 deal and its interests in environmental solutions provider, 800 Super.
This brings the group’s total asset monetisation since October 2020 to about S$14 billion, including the divestment of Keppel Offshore & Marine in 2023.
Keppel said it is targeting over S$500 million more in monetisation deals in the next few months.
It is expected to unlock some S$1 billion in cash from the proposed sale of M1’s telco business to Simba Telecom, which is targeted to be completed by end-2025, subject to regulatory approval. Keppel also expects the legal action against M1 by Liberty Wireless to not affect the sale, with any implication to affect only M1.
In addition, the group said it is “committed to a steady and sustainable dividend strategy” that reflects the earnings performance of “New Keppel” – excluding the non-core portfolio for divestment and discontinued operations.
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Its dividend payout will be based on the New Keppel’s annual net profit, with the final amount subject to the discretion of the board.
“As Keppel’s earnings profile becomes increasingly stable and recurring, the company aims to provide shareholders with consistent and steadily growing cash returns, while maintaining prudent capital allocation to support growth and an efficient capital structure,” the company said.
For 9M FY2025, net profit for New Keppel rose over 25 per cent year on year.
Including the non-core portfolio for divestment and discontinued operations, overall net profit grew over 5 per cent, despite an accounting loss from the proposed divestment of M1’s telco business.
The group attributed the improvements to earnings growth across all three business segments. Recurring income grew close to 15 per cent, with higher contributions from both asset management and operating income.
Keppel’s non-core portfolio for divestment include mainly legacy offshore and marine assets, its residential landbank, hospitality and logistics assets and other non-core investments that are not aligned with its strategic focus.
The group said the non-core portfolio for divestment achieved a net profit for 9M FY2025, reversing from a net loss in the corresponding period the year before.
The M1 telco business has been reclassified as discontinued operations.
Keppel CEO Loh Chin Hua said: “These results reflect the strong momentum achieved in both asset management and operations, and our efforts to drive asset monetisation.”
In the first nine months of 2025, Keppel generated a steady S$299 million in asset management fees and completed around S$7.6 billion in acquisitions and divestments.
Fee earnings have, however, remained flattish, as Keppel’s teams are closing on transactions and wrapping up deals before the year-end. The group expects its asset management fees to do better this year than last year.
Over the same period, Keppel’s private funds raised a combined S$6.7 billion in funds under management (FUM).
Meanwhile, Keppel’s listed real estate investment trusts and infrastructure trust are expanding their portfolios through new real estate and digital infrastructure acquisitions that would progressively add another S$1.4 billion to FUM, the group said.
Keppel said it is actively pursuing new deployment opportunities through a deal flow pipeline of about S$35 billion, more than half of which are in the infrastructure and connectivity segments.
The integrated power business has continued to perform even as spreads have gradually normalised, with 67 per cent of customers locked in for three years and beyond. With the commencement of the new Keppel Sakra Cogen plant next year, power spreads will continue to soften.
The decarbonisation and sustainability business continues to perform, with S$6.8 billion of revenue under long-term contracts earned over 10 to 15 years.
Loh said: “The market increasingly recognises Keppel as a global asset manager and operator, and has started re-rating the company as we execute our growth strategy.”
Shares of Keppel closed 0.5 per cent or S$0.05 higher at S$9.89 on Wednesday, before the announcement.
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