Keppel reports over S$3.6 billion net profit as it transforms to be a global asset manager and operator

• Booked gains of S$3.3 billion from disposal of O&M business in 1H23.
  
  
• Excluding discontinued O&M operations, recurring income surged 62% yoy to S$340 million in 1H23, making up 76% of S$445 million 1H23 net profit.
  
  
• Delivered Total Shareholder Returns of 118.0% from 1 Jan 2022 to 30 Jun 2023, outperforming STI’s 9.62% by over 12x.
  
  
• Rewarding shareholders with strong dividends:
  
  
  • 1H23 interim cash dividend:
    Declares 15.0 cts/share to be paid on 18 Aug 2023.
    
    Including FY22 final cash dividend of 18.0 cts/share paid in May 2023, shareholders will receive total cash dividends of 33.0 cts/share in 2023, representing 4.7% yield^[1].
    
    
  • 55^th anniversary special dividend in-specie:
    Proposes distribution of 1 Keppel REIT unit^[2], for every 5 Keppel shares held.
    
    

Keppel reported a net profit of over S$3.6 billion for the half year ended 30 June 2023, the highest profit on record in the Company’s 55-year history. 1H23’s net profit was significantly higher than the S$498 million reported in 1H22, underpinned by a S$3.3 billion disposal gain from the divestment of the offshore and marine (O&M) business. Annualised Return on Equity (ROE) was 36.8% in 1H23, compared to 8.4% in 1H22.

Excluding the discontinued O&M operations in both periods, Keppel delivered a robust net profit of S$445 million in 1H23, which was about 3% higher year on year (yoy), bolstered by stronger performance by the Infrastructure and Connectivity segments. About 76% of 1H23’s net profit from continuing operations comprised recurring income, which surged 62% yoy to S$340 million from S$210 million in 1H22.

The Company’s revenue from continuing operations in 1H23 grew 11% to S$3,716 million from S$3,356 million in 1H22, underpinned by higher contributions from the Infrastructure and Connectivity segments.

^[1] _{Based on Keppel’s closing share price of S$6.99 on 26 July 2023.}

^[2] _{The final value of the dividend in-specie will be based on the price of Keppel REIT units on the date the Proposed Distribution is completed, which is subject to the approval of Keppel's shareholders at an EGM to be held in due course.}

Keppel records stronger 3Q & 9M performance with improvements from continuing operations

• Strong infrastructure earnings growth continues in 3Q and 9M 2023 underpinned by robust integrated power business.
  
  
• Increased activity across fund management and investment platforms:
  
  
• Raised ~S$1.0 billion in equity in 9M 2023; made acquisitions of S$600 million in 3Q 2023 bringing total acquisitions to ~S$1.7 billion in 9M 2023.
  
  
• Achieved first closing of US$575 million (S$783 million) for flagship core infrastructure fund with target size of US$2.5 billion (S$3.4 billion).
  
  
• Good traction in fundraising for flagship sustainable urban renewal (SUR) fund; working towards first closing soon.
  
  
• Outperformed asset monetisation target — Announced S$865 million in asset monetisation year to date, and S$5.3 billion since October 2020.
  
  
• Total distributions in 2023 to reach ~S$2.70/share, including dividend in specie of Keppel REIT units worth ~S$0.18/share^[1].
  
  

Keppel has released its voluntary business update for 3Q & 9M 2023. In 9M 2023, net profit from continuing operations grew year-on-year (yoy) bolstered by stronger performance from the Infrastructure and Connectivity segments. Net profit for 3Q 2023 was also stronger yoy, with all three horizontal segments — Infrastructure, Real Estate and Connectivity — registering improvements.

^[1] _{Based on the last traded price of Keppel REIT units on the SGX-ST on 26 July 2023 of S$0.915; the final value of the dividend in specie will be based on the price of Keppel REIT units on the completion date on or about 7 November 2023.}

Keppel’s net profit more than quadruples to historical high of S$4.1 billion in FY23

• Strong results from continuing operations with all 3 segments contributing positively in FY23
  
  
• 2H23 net profit from continuing operations rose 36% yoy to S$551 million^[1]
  
  
• Robust recurring income growth: Recurring income surged 54% yoy to S$773 million in FY23, making up 88% of FY23 net profit from continuing operations
  
  
• Attractive final dividend:
• Proposed final cash dividend of 19.0 cts/share brings total cash dividend to 34.0 cts/share for FY23.
  
• Total FY23 distribution to reach about S$2.70 per Keppel share, comprising cash and in-specie distributions of then Sembcorp Marine shares^[2] and Keppel REIT units.
  

Keppel Ltd. (Keppel) reported its highest net profit in history of S$4.1 billion for the full year ended 31 December 2023. Bolstered by a S$3.3 billion disposal gain from the divestment of the offshore and marine (O&M) business, FY23’s net profit more than quadrupled the net profit of S$927 million in FY22. Return on Equity (ROE) was 37.9% in FY23, compared to 8.1% in FY22.

^{[1] Excludes discontinued O&M operations and loss from the distribution in-specie of Keppel REIT units.}

^{[2] Based on the closing price of Sembcorp Marine shares as at 1 March 2023 of 11.5 cents per share (the first trading day following completion of the combination transaction), the cash equivalent amount of the dividend declared by the Company was S$3,845 million, equivalent to approximately S$2.19 per Keppel share, based on the Company's issued and paid-up share capital as at the record date (for such dividend in specie) of 1,751,959,918 Keppel shares (excluding treasury shares).}

Keppel’s net profit rises 66% yoy to S$498 million in 1H 2022

• Strong recurring income growth of 43% yoy to S$202 million in 1H 2022.

• Over S$3.6 billion in asset monetisation announced from October 2020 to July 2022, with S$2.9 billion in cash received.

• Higher interim dividend of 15.0 cents per share declared for 1H 2022.

Keppel reported an overall net profit of S$498 million for the half year ended 30 June 2022, an increase of 66% over the previous year, underpinned by profitability across all segments including the discontinued offshore & marine operations.

Excluding the discontinued operations, the Company’s net profit from continuing operations in 1H 2022 was S$434 million, or 26% higher year-on-year, bolstered by recurring income which grew 43% to S$202 million.

The Company’s revenue from continuing operations grew 16% to S$3,356 million in 1H 2022 from S$2,888 million in 1H 2021. This was due mainly to a significant increase in contributions from the Energy & Environment and Asset Management segments, which more than offset the decline in Urban Development’s revenue.

Keppel’s performance improves in 9M 2022, continues progress towards Vision 2030 goals

• Revenue grew 24% yoy to S$6.8 billion ^[1] in 9M 2022; net profit improved over same period.

• Asset monetisation announced reached close to S$4.4 billion; well on track to exceed S$5 billion target before end-2023.

• Signed revised agreements that simplify implementation, provide greater deal certainty and accelerate completion of proposed Offshore & Marine transactions.

Keppel has released its voluntary business update for 3Q & 9M 2022. For the first nine months of 2022, net profit improved year on year, underpinned by stronger performance from the Energy & Environment and Asset Management segments. Net profit for 3Q 2022 was lower yoy mainly due to the absence of the gain from the enbloc sale of a project in China in the equivalent period a year ago.

The Company’s revenue ^[1] grew 24% to S$6,836 million in 9M 2022, from S$5,510 million in 9M 2021, underpinned by higher revenue contributions from Keppel Infrastructure, Keppel Offshore & Marine, M1 and Keppel Capital.

^[1]Revenue includes contributions from Discontinued Operations. Excluding Discontinued Operations, revenue from Continuing Operations in 9M 2022 was S$5,016 million, up 15% from S$4,348 million for 9M 2021.

Keppel reports robust net profit of S$927 million in FY 2022

• Strong progress in Vision 2030 transformation:
• Asset Management, the largest contributor in FY 2022, reported earnings of S$311 million, representing over a third of the Company’s up’s net profit.
  
• Energy & Environment reported S$260 million net profit, reversing S$414 million net loss in FY 2021.
  
• Recurring income more than doubled to S$560 million in FY 2022, excluding discontinued operations.
  

• Proposed combination of Keppel Offshore & Marine and Sembcorp Marine (SCM) in final stages of execution:
• Had proposed O&M combination been completed at end-2022, it would have resulted in a pro forma disposal gain of about S$3.4 billion or S$1.94 per Keppel share in FY 2022^[1].
  
• Due to the substantial disposal gain, impact to the Company’s pro forma Net Tangible Assets (NTA) in FY 2022 would be marginal post distribution in specie^[2].
  

• Advancing asset-light model:
  • Keppel announced ~S$2.8 billion worth of joint investments with Keppel Capital-managed private funds/business trust in 2022.
    

• Continuing asset monetisation:
• Over S$4.6 billion announced to date, well on track to exceed S$5 billion target by end-2023.
  

• Strong dividends:
• Proposed final cash dividend of 18.0 cents per share brings FY 2022 total cash dividend to 33.0 cents per share.
  

Keppel reported a robust net profit of S$927 million for the full year ended 31 December 2022, bolstered by stronger results in the Asset Management and Energy & Environment segments. With a net profit of S$311 million, Asset Management was the largest contributor to the Company's earnings, followed by Urban Development, Energy & Environment and Connectivity.

^{[1] Based on (a) the assumption that 36,848,072,918 SCM Shares will be issued by Sembcorp Marine to the Company representing 54% of total number of SCM Shares on a fully diluted basis immediately after Closing, (b) the SCM Shareholders holding 31,389,099,152 SCM Shares, representing 46% of the total number of SCM Shares on a fully diluted basis immediately after Closing which, for the purpose of this computation, is the same number of SCM Shares held by the SCM Shareholders as at the last market day (26 April 2022) preceding the original announcement of the Proposed Transaction (“Last Market Day”), and (c) an issue price of S$0.122, being the volume weighted average price of SCM Shares for the last 10 trading days up to and including the Last Market Day. The number of DIS Shares to be distributed for every one (1) KCL Share held by an Eligible Shareholder is calculated based on the assumption that Company’s issued and paid-up share capital on Closing would be 1,751,959,918 KCL Shares (excluding treasury shares) which is the number of KCL Shares (excluding treasury shares) of the Company as at 31 December 2022, and on the further assumption that 33,436,214,314 DIS Shares will be distributed to Eligible Shareholders.}

^{The actual issue price for the SCM Shares will be determined by SCM and the actual consideration used to derive the disposal gain arising from the Proposed Transaction and the actual value of the Proposed Distribution on completion of the Proposed Transaction and Proposed Distribution will depend on the last traded price of the SCM Shares on the first Market Day immediately following the date of Closing and the actual number of SCM Shares to be issued to the Company on such Closing.}

^{[2] The pro forma value of the proposed distribution is calculated based on the proposed issue price of S$0.122, being the VWAP of SCM shares for the last 10 trading days up to and including the Last Market Day, per new SCM share and assuming a total of 36,848,072,918 new SCM shares to be issued to Keppel on completion of the Proposed Transaction. In this regard, the actual value of the proposed distribution on completion will depend on the last traded price of SCM shares on the first market day immediately following the date of such completion and the actual number of SCM shares to be issued on Closing.}

Keppel’s net profit improved significantly to S$300m in 1H 2021, reversing net loss of S$537 million in 1H 2020

Announced monetisation of over S$2.3 billion in assets from October 2020 to July 2021, and have completed half of the transactions.

Unlocked cash of S$854 million in 1H 2021 from asset monetisation.

Declared interim dividend of 12.0 cents per share for 1H 2021.

Keppel reported a net profit of S$300 million for the half year ended 30 June 2021, underpinned by profitability across all key business units. Net profit for the current period was a significant improvement over the net loss of S$537 million for 1H 2020, which had been impacted by S$930 million of impairments mainly related to the offshore & marine business.

Excluding revaluations, impairments and divestments as well as COVID-19-related government grants in both years, the Company would have achieved a net profit of S$280 million in 1H 2021, compared to a net loss of S$72 million in 1H 2020. When compared on a similar basis, the Company’s operating performance in 1H 2021 was also a marked improvement of about 88% over the net profit of S$149 million recorded in 1H 2019, prior to the pandemic.

Keppel records sharp earnings growth for 3Q & 9M 2021 with improvements across all business segments

Keppel has today released its voluntary business update for 3Q & 9M 2021. Net profit for the first nine months of 2021 was a sharp reversal from the net loss registered a year ago, with all segments performing better year on year^1. Even excluding revaluations, major impairments and divestments in both years^2, net profit for 9M 2021 was also a significant improvement year-on-year. The Company’s net profit for 3Q 2021 also grew strongly compared to a year ago, with all segments registering improved performance.

The Company’s revenue was S$5,510 million for 9M 2021, which was 14% higher than S$4,818 million a year ago, underpinned by higher revenue contributions across all four key segments. The Company’s net gearing was lower at 0.76x as at 30 September 2021, compared to 0.85x as at 30 June 2021, mainly due to proceeds from asset monetisation and the issuance of perpetual securities, which were offset by the payment of 2021’s interim dividend.

Keppel’s FY 2021 net profit surges to S$1.02 billion, the highest in 6 years

• Strong results & earnings growth:
  • Full year net profit crossed S$1 billion mark for first time since FY 2015.
    
  • 2H 2021’s net profit grew to S$723 million, from S$31 million in 2H 2020.
  • Revenue rose 31% to S$8.63 billion in FY 2021 from S$6.57 billion in FY 2020.
  • Free cash inflow surged to S$1.75 billion in FY 2021 from S$72 million outflow in FY 2020.

• Robust asset monetisation: Announced monetisation of S$2.9 billion in assets from 4Q 2020 to end-2021 and collected S$2.7 billion in cash.

• Significantly higher dividends: Proposing final cash dividend of 21.0 cts/share. FY 2021’s total distribution would be 33.0 cts/share, more than triple the 10.0 cts/share for FY 2020.

• Announced S$500 million Share Buyback Programme.

Keppel reported strong earnings growth with a net profit of S$1.02 billion for the full year ended 31 December 2021, bolstered by improved performance across all business segments. This is the highest earnings achieved in the past six years since the offshore & marine downturn, and marks a sharp reversal of FY 2020’s net loss of S$506 million.

Keppel reports net loss of S$537m for 1H 2020 due to Offshore & Marine impairments

Excluding impairments, the Company would have registered 1H 2020 net profit of S$393 million, 5% higher year-on-year, with resilient performance by other key business units 

Interim dividend of 3.0 cents per share declared for 1H 2020

Keppel reported a net loss of S$537 million for the half year ended 30 June 2020, compared to a net profit of S$356 million for 1H 2019, after S$930 million of impairments mainly related to Keppel Offshore & Marine’s stranded assets, receivables, stocks and share of impairment provisions from Floatel. Excluding impairments, the Company would have registered net profit of S$393 million for 1H 2020, 5% higher year-on-year, underpinned by resilient operations from other businesses in the Company.

The Company’s 1H 2020 revenue of S$3,182 million, was slightly lower compared to the S$3,315 million achieved in 1H 2019. Lower contributions from property trading projects in China, power and gas sales, environmental engineering projects and asset management were partially offset by higher revenues from O&M projects and the consolidation of M1 from March 2019.

Keppel announces business updates for 3Q & 9M 2020

The Company returned to profitability in 3Q 2020; makes steady progress on Vision 2030 with a 100-day programme to drive results.

Keppel has today released its first voluntary business update for 3Q & 9M 2020, following the adoption of semiannual reporting of its results.

Many of Keppel’s businesses provide essential services and continued to operate throughout the COVID-19 pandemic. As the COVID-19 situation stabilises in Singapore and other key markets where the Company operates, Keppel’s employees are progressively returning to the workplace, while observing the relevant safe management measures.

The Company returned to profitability in 3Q 2020, compared to 2Q 2020’s net loss of S$697 million, though 3Q 2020’s net profit is significantly lower year-on-year. Except for Keppel Offshore & Marine, all key business units were profitable in 3Q 2020. However, the Company remained loss-making for the first nine months of 2020, due to the significant impairments of S$919 million, mainly from the offshore and marine business, recorded in 2Q 2020.

Keppel reports S$506 million net loss for FY 2020 mainly due to offshore & marine impairments

Excluding impairments, net profit for FY 2020 would have been S$446 million, compared to S$828 million for FY 2019.

The Company registered net profit of S$31 million for 2H 2020, recovering from a net loss of S$537 million in 1H 2020.

Proposed final cash dividend of 7.0 cts/share brings FY 2020’s total distribution to 10.0 cts/share.

Keppel reported a net loss of S$506 million for FY 2020, compared to a net profit of S$707 million a year ago, after impairments of S$952 million mainly due to the offshore & marine business, the bulk of which was recognised in 2Q 2020. Excluding impairments in both years, the Company would have registered a net profit of S$446 million for FY 2020, as compared to the net profit of S$828 million for FY 2019. Apart from Keppel O&M, all key business units of the Company remained profitable in FY 2020.

The Company’s revenue was S$6,574 million for FY 2020, 13% lower year-on-year, mainly due to lower contributions from the Energy & Environment, Urban Development and Asset Management segments, offset by higher revenue from Connectivity.

Keppel nets profit of S$356m for 1H 2019

Interim dividend of 8.0 cents per share declared for 1H 2019.

Keppel reported a net profit of S$356 million for the half year ended 30 June 2019, 39% below the S$586 million achieved a year ago, mainly due to lower contributions from en-bloc sales of property projects which amounted to S$416 million in 1H 2018.

Compared to 1H 2018, the six months of 2019 saw improved performance at Keppel Offshore & Marine which returned to profitability, higher contributions from M1 following the consolidation of its results with the Company, as well as strong earnings growth at Keppel Infrastructure and Keppel Capital.

Keppel nets profit of S$515m for 9M 2019

Net profit lower year on year due to lower gains from en-bloc sales and divestments.

Keppel reported a net profit of S$515 million for the nine months ended 30 September 2019, with stronger contributions from the Offshore & Marine, Infrastructure and Investments divisions. Net profit for 9M 2019 was 37% lower compared to that of 9M 2018. In 9M 2018, the Company benefited from the en-bloc sales of development projects in China and Vietnam, as well as gains from the divestment of a commercial development in Beijing, which amounted to S$544 million.

All business divisions achieved increased sales in the current financial period, resulting in a 26% year on year growth in the Company's revenue to S$5,382 million for 9M 2019.

Keppel registers net profit of S$707 million for FY 2019

Strong finish in 2019 saw 4Q net profit rise 42% yoy to S$192 million.

Proposed final cash dividend of 12.0 cts/share brings FY 2019 total distribution to 20.0 cts/share at 51% payout ratio.

Keppel reported a net profit of S$707 million for the 12 months ended 31 December 2019 with stronger contributions from Keppel Offshore & Marine, Keppel Infrastructure and Keppel Capital. This was 25% lower as compared to FY 2018, when the Company had benefitted from S$584 million in gains through the en-bloc sales of development projects and property divestments.

Revenue grew 27% to S$7,580 million in FY 2019 with higher recognition of ongoing offshore & marine and infrastructure projects, improved sales in the power and gas segment, the consolidation of M1 and higher asset management revenue.

Keppel’s 1H 2018 net profit up 38% year on year to S$583m

Dividends totaling 15.0 cents per share declared for 1H 2018 include a special dividend of 5.0 cents per share.

Keppel reported a net profit of S$583 million for half year ended 30 June 2018, 38% higher than the S$423 million achieved a year ago. Stronger contributions from the Property and Infrastructure divisions more than offset losses incurred by the Offshore & Marine and Investments divisions in 1H 2018.

The Company’s 1H 2018 revenue of S$2,993 million was 7% higher than the S$2,802 million for 1H 2017. Offshore & Marine and Property revenues remained stable year on year while Infrastructure revenue grew by 23% to S$1,211 million due to better sales in the power and gas businesses, as well as progressive recognition from the Keppel Marina East Desalination Plant project.

Keppel’s 9M 2018 net profit up 18% year on year to S$809m

Keppel reported a net profit of S$809 million for the nine months ended 30 September 2018, 18% higher than the S$688 million achieved a year ago. This was underpinned by stronger contributions from the Property
and Infrastructure divisions, which more than offset losses incurred by the Offshore & Marine and Investments divisions.

The Company’s 9M 2018 revenue of S$4,288 million was slightly lower compared with S$4,419 million for 9M 2017. Revenue recognition from the rigs sold to Borr Drilling, coupled with increased power and gas sales, were offset by lower contributions from property trading and asset management, a decrease in the O&M Division’s work volume, as well as the absence of the sale of investments.

Keppel nets profit of S$944 million for FY 2018, up 382% yoy

Proposed final cash dividend of 15.0 cts/share will bring total cash distribution to 30.0 cts/share for FY 2018.

Keppel reported a net profit of S$944 million for the 12 months ended 31 December 2018. This was 382% higher than the S$196 million net profit for FY 2017, which included the S$619 million one-off financial penalty and related costs arising from Keppel O&M’s global resolution with criminal authorities in the United States, Brazil and Singapore.

The Company’s FY 2018 net profit of S$944 million would have been 16% higher year on year, excluding the one-off financial penalty and related costs in FY 2017. Earnings growth for the period was underpinned by stronger performance from across the Offshore & Marine, Property and Infrastructure divisions.

Keppel nets higher profit of S$421m for 1H 2017, bolstered by multi-business strategy

Tax exempt one-tier interim dividend of 8.0 cents per share declared.

For the half year ended 30 June 2017, Keppel reported a net profit of S$421 million, slightly higher than the S$416 million for 1H 2016. Revenue of S$2,802 million for 1H 2017 was S$566 million, or 17% below that of the same period in 2016.

Keppel posts 11% yoy net profit growth to S$712m for 9M 2017

Non-O&M businesses underpin 29% yoy increase in 3Q 2017 net income to S$291m

For the nine months ended 30 September 2017, Keppel reported a net profit of S$712 million, 11% higher than the S$641 million for 9M 2016. Revenue of S$4,419 million for 9M 2017 was S$408 million, or 8% below that of the same period in 2016.

Keppel posts FY 2017 net profit of S$217m compared to S$784m a year ago following one-off penalty

The proposed final cash dividend of 14.0 cents per share will bring the total cash distribution for FY 2017 to 22.0 cents per share, representing a payout ratio of about 48% on the Company’s net profit of S$836 million, excluding Keppel O&M’s one-off financial penalty and related costs.

Keppel reported a net profit of S$217 million for the 12 months ended 31 December 2017. This was 72% lower than the S$784 million net profit for FY 2016, due mainly to the one-off financial penalty arising from Keppel O&M’s global resolution with criminal authorities in the United States, Brazil and Singapore, and related legal, accounting and forensics costs amounting to S$619 million.

Excluding the one-off financial penalty and related costs, the Company would have turned in a net profit S$836 million for FY 2017, 7% higher compared to S$784 million a year ago.