Keppel posts 20% rise in Q3 net profit; New Keppel earnings up 15%

[SINGAPORE] Asset manager and operator Keppel reported a 20 per cent increase in its net profit for the third quarter ended Sep 30, 2026.

Excluding its non-core portfolio for divestment and discontinued operations, net profit for “New Keppel” – which is the term the company uses to refer to its continuing core business – increased by close to 15 per cent year on year for the quarter.

The increase in New Keppel’s profit was underpinned by stronger performance in its connectivity segment and steady earnings from its infrastructure segment, said the company in a business update on Thursday (Oct 29).

9-month performance

Keppel’s net profit for the first nine months of 2026 fell 40 per cent year on year.

The drop was due to a 4 per cent reduction in its gross asset value of non-core assets that remained on the books of Keppel. The gross asset value fell due to impairments, depreciation, operating and holding costs.

However, New Keppel posted a net profit of over 20 per cent from a year earlier for the nine months ended Sep 30, 2026. The rise was led by stronger performance by the infrastructure and connectivity segments.

Said Loh Chin Hua, CEO of Keppel: “The New Keppel continued to perform strongly in both Q3 and 9M 2026, as we continued to execute our strategy as a global asset manager and operator focused on essential energy and digital infrastructure.”

Recurring income for the nine-month period rose more than 10 per cent year on year, driven by improvements across its asset management businesses, its sponsor stakes and co-investments, and the company’s operating platform.

In the first nine months of 2026, Keppel generated S$354 million in asset management fees, an increase of 18 per cent year on year. It also completed about S$4.5 billion in acquisitions and S$3.5 billion in divestments.

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Its infrastructure division recorded stronger year-on-year performance for the first nine months. Its integrated power business saw a 7 per cent year-on-year growth in its earnings before interest, taxes, depreciation and amortisation (Ebitda), driven by contributions from its 600 megawatt Keppel Sakra Cogen Plant which began operations in May 2026.

Its connectivity segment, which includes its data centre portfolio, remains underpinned by a focus on power constrained markets. The segment also continued to grow its technology solutions business, whose revenue expanded to over S$900 million, and Ebitda grew 110 per cent year on year for the first nine months of 2026.

Its real estate division announced over S$2.4 billion of non-core property monetisation in the year to date, including the proposed divestment of a 51 per cent interest in Keppel South Central to Keppel Reit.

New Keppel to contribute ordinary dividends

With the bifurcation of Keppel into the New Keppel and its non-core portfolio, the company said that the ordinary dividends will be determined by earnings from the New Keppel. At the same time, the company aims to pay special dividends of 10 to 15 per cent from the realised proceeds from non-core asset monetisation.

To give the market greater clarity on Keppel’s performance, the company will also report changes in the gross asset value of the non-core portfolio that remains on its books.

Shares of Keppel ended 0.3 per cent or S$0.03 higher at S$10.13 on Wednesday.