Keppel handpicks 'young guns' to refresh top jobs in key units

Singapore

IN ONE of the biggest management reshuffles at Keppel Corp - maybe even for Singapore Inc - the conglomerate unveiled top-level changes at three key business units plus several senior executive appointments, including one at group level, to ramp up growth.

The all-insider shakeup of a "generational" kind - all six are "young guns" in their 40s and talent groomed from within - will be effective around mid-February next year.

One astute Keppel watcher remarked: "This is not the case of one person retiring and the company filling the gap. Keppel is changing the leadership bench to ensure they can steer and execute the 2030 plan. Vision 2030 is not just lip service."

The next generation leaders announced on Monday are in fact part of the team that formulated the group's 10-year roadmap unveiled in May this year to drive results across key segments from property, energy & environment to asset management and data centres.

They are ready to take on bigger roles and are part of the conglomerate's succession planning and leadership renewal across the business units, said Keppel chief executive Loh Chin Hua in a statement issued on Monday.

Under the top-job shifts, Louis Lim, currently the chief operating officer (COO) of Keppel Land, is set to take over the helm of the group's property arm whose operations span Singapore, China, Vietnam and Indonesia.

Keppel Infrastructure's new boss will be Cindy Lim, currently Keppel Corp's group corporate development director and concurrently managing director of Keppel Urban Solutions.

Keppel DC Reit Management, currently helmed by Chua Hsien Yang, will see Anthea Lee - its current deputy CEO and investment head - become its new chief, subject to regulatory approval.

Meanwhile, two COOs will be appointed to the group's property and asset management firms.

Ben Lee, who is Keppel Land China president, will be concurrently appointed COO of Keppel Land, while Bridget Lee, currently CEO of Keppel Capital Alternative Asset (KCAA), will be concurrently appointed Keppel Capital's COO.

One other key appointment involves a newly created post at group level, Keppel Corp's director of group M&A, to be held by Chua Hsien Yang. One analyst didn't skip a beat: "We should expect more M&A given this promotion."

That should not come as too much of a big surprise.

Keppel had earlier said that apart from its logistics business, the ailing offshore & marine business was under a strategic review. With a key executive in a dedicated position to push M&A, many may be betting that the long-awaited industry consolidation between Singapore's two giant rigbuilders - Keppel O&M and Sembcorp Marine - could happen at some point, especially given the current downturn in the sector.

This year has been a challenging one for the group, which is just over 20 per cent owned by Singapore's state investment firm Temasek Holdings. Keppel posted record losses of S$697 million in the second quarter owing to painful O&M impairments, no thanks to the pandemic that led oil prices to plumb to historic lows.

The poor report card breached a key metric for Temasek's partial takeover of Keppel and compelled the investment firm to ditch its control bid in August. This had disappointed investors who had viewed the potential deal as a catalyst to shake things up at the firm and unlock value.

Things, however, have lately been looking up a tad. Some confidence has been restored with renewed focus on the group's 10-year guide, topped up by a more immediate 100-day programme that began in late-September to execute its plan, stirring some potential re-rating excitement.

Keppel's capital recycling initiatives, including efforts to unlock S$3-5 billion from identified assets over the next three years, have further added to the buzz. In addition, Keppel turned the corner sequentially in the third quarter, although net profit for the three months to September came in significantly lower year on year.

Now, the sweeping leadership refresh at several key units is one other positive stride. Enlivened by the latest news and the broader vaccine optimism that drove gains in equities in Singapore and the region, Keppel stock jumped nine Singapore cents or 1.8 per cent to finish at S$5.24 on Monday.