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Global asset manager and operator Keppel Ltd. (Keppel) reported a net profit of $431 million for the first half of 2025, surging 25% from $345 million in 1H 2024, excluding the Non-Core Portfolio for Divestment[1]. The strong performance for the period was driven by resilient earnings in the Infrastructure Segment and higher contributions from Real Estate.
On the back of its asset-light strategy and focus on growing recurring income, the New Keppel achieved an annualised Return on Equity (ROE)[2] of 15.4% in 1H 2025, improving from 13.2% in 1H 2024, while its recurring income grew 7% year-on-year (yoy) to $444 million in 1H 2025, compared to $414 million in 1H 2024.
The Company has identified for divestment a portfolio of non-core assets[1] with a carrying value of $14.4 billion as at 30 June 2025. These non-core assets are no longer aligned with Keppel’s asset-light, recurring income-focused strategy, even though many of these non-core assets are profitable, with assets such as the Company’s residential landbank carried at historical costs. Including the effects of the Non-Core Portfolio for Divestment, the Company’s overall net profit for 1H 2025 rose 24% yoy to $378 million, up from $304 million in 1H 2024, underscoring the strength of Keppel’s core business.
In his speech announcing Keppel's 1H 2025 results, Mr Loh Chin Hua, CEO of Keppel, highlighted the Company’s progress towards Vision 2030, which positions the New Keppel as a leading global asset manager and operator focused on fast-growing sectors across sustainability and digital infrastructure.
Mr Loh said, “We have achieved strong results in 1H 2025 and are on track to realising Vision 2030. Today, the New Keppel is delivering strong earnings from only a part of our balance sheet. This leaves significant value to be unlocked from releasing that part of the balance sheet that is not required by the New Keppel. By reporting the non-core portfolio separately, we aim to provide greater transparency on our performance as a global asset manager and operator. Looking ahead, we will focus on accelerating the growth of the New Keppel and monetising the $14.4 billion non-core portfolio, which includes $2.9 billion of embedded cash and receivables. This positions Keppel for a further re-rating as we unlock capital for growth, to reduce debt and to reward our shareholders.”
As at end-June 2025, FUM[3] expanded to $91 billion, underpinned by active capital raising efforts, while asset management fees[4] amounted to $195 million in 1H 2025. Keppel’s private funds such as those for data centres, education assets and sustainable urban renewal have also gained strong traction with global Limited Partners, raising a combined FUM of $4.7 billion year to date.
With intensified efforts in asset monetisation, Keppel announced the divestment of about $915 million of assets in the year to date, raising its cumulative total to about $7.8 billion since the programme began in October 2020. The Company remains focused on optimising the speed of divestment and exit value of Keppel’s non-core assets and expects to finalise negotiations for another over $500 million worth of transactions in 2H 2025.
Since early 2023, Keppel has leveraged digitalisation and AI to optimise costs and improve efficiency, achieving $88 million in recurring annual run-rate cost savings, advancing toward its target of $120 million per annum by end-2026.
Growing as a data-driven organisation, the Company leverages its secure, Keppel-wide data lake to accelerate decision making and analysis, building on SaaS platforms for greater speed and agility. Using its proprietary Keppel AI Operating System and in-house AI factory, the Company is creating various agentic AI models to drive efficiency and AI adoption across asset management, investments and operations.
Dividends and share buyback programme
In appreciation of the support and confidence of Keppel shareholders, the Board has approved an interim cash dividend of 15.0 cents per share for 1H 2025. This interim dividend, which will be paid to shareholders on 21 August 2025, is the same as last year’s interim dividend of 15.0 cents per share.
On the back of Keppel’s strong growth trajectory and progress in asset monetisation, Keppel also announced today a $500 million Share Buyback Programme that will see the Company progressively repurchasing its shares from the open market. The shares repurchased will be held as treasury shares, which will be used in part for the annual vesting of employee share plans, and as possible currency for future merger and acquisition activities.
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About Keppel Ltd.
Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.
ADDENDUM
Business Highlights
Fund Management & Investment Platform
As at end-June 2025, Keppel’s FUM[3] had grown to $91 billion while asset management fees[4] amounted to $195 million in 1H 2025. In the year to date, Keppel’s private funds and listed entities raised about $1.9 billion in equity and completed $6.5 billion in acquisitions and divestments. Keppel’s European platform, Aermont Capital, continued to perform well and is focused on deploying Fund V with plans to launch Fund VI later in 2025.
In June 2025, the Company formed a strategic partnership with AIIB to mobilise up to US$1.5 billion to fund Keppel’s projects across green and tech-enabled infrastructure and connectivity solutions in Asia Pacific. More recently in July 2025, Keppel was ranked in IPE Real Assets’ list of Top 100 Infrastructure Managers, emerging as the fourth largest in Asia Pacific, and the 23rd largest globally by Assets Under Management.
Operating Divisions
In 1H 2025, the Infrastructure Division’s net profit rose 8% yoy to $333 million, while its EBITDA grew 7% to $405 million over the same period, underpinned by asset-light, recurring income. As at end-June 2025, about 71% of the Division’s contracted power generation capacity[5] was locked in for three years and above. Further earnings growth is expected in the next few years with about 1 GW of new power capacity coming onstream, including the 600 MW Keppel Sakra Cogen Plant in 1H 2026 and another potential 300-500 MW of renewable energy imports from 2028. Notably in July 2025, Keppel was selected by the Energy Market Authority to conduct carbon capture and storage feasibility studies for Singapore’s power sector.
The Infrastructure Division’s non-power segment continued to expand, doubling earnings yoy from operations and supply of decarbonisation and sustainability solutions. As at end-June 2025, its long-term supply concessions reached $6.8 billion, representing a 2.1-fold increase over the three-year period since 2022.
The Real Estate Division continued its pivot into an asset-light solutions provider, with about $830 million of real estate assets monetised in the year to date. The Division is implementing its Sustainable Urban Renewal solutions across five projects with a combined asset value of $1.8 billion[6], creating high-quality assets that deliver both strong sustainability outcomes and robust investment returns.
The Connectivity Division is redefining digital infrastructure with innovative, more sustainable solutions. Keppel’s proprietary Floating Data Centre (FDC) – a game-changing alternative for land- and resource-constrained cities – has completed its Environmental Impact Assessment in Singapore and, pending final approvals from the authorities, is expected to start construction in 4Q 2025. Slated for completion by end-2028[7], the 25 MW FDC will be funded by Keppel Data Centre Fund II and will be the first-of-its-kind in Asia Pacific and a full-scale proof of concept for the region. Separately, the Bifrost Cable System has completed marine cable laying operations and is expected to be ready for service by end-September 2025.
Meanwhile, M1 continues to scale up its enterprise business and expand its regional presence, through a strengthened portfolio of integrated digital and connectivity solutions, both in Singapore and across the region.
Unless explicitly indicated otherwise, all monetary values denoted as ‘$’ within this media release are to be interpreted as referring to Singapore dollars.
[1] Non-Core Portfolio for Divestment comprises mainly legacy offshore & marine assets, residential landbank, selected property developments and investment properties, hospitality and logistics assets, associated cash and receivables, and other non-core investments that are not aligned with Keppel’s strategic focus as an asset-light global asset manager and operator.
[2] ROE (excluding Non-Core Portfolio) refers to the return generated on the average shareholders’ funds of New Keppel, i.e. excluding equity that is attributable to the Non-Core Portfolio.
[3] Gross asset value of investments and uninvested capital commitments on a leveraged basis is used to project fully-invested FUM.
[4] Includes 100% fees from subsidiary managers, joint ventures and associated entities, as well as share of fees based on shareholding stake in associate with which Keppel has strategic alliance. It also includes asset management, transaction and advisory fees on sponsor stakes and co-investments.
[5] Based on Keppel’s existing generation capacity.
[6] Asset values as of end-Jun 2025.
[7] Subject to relevant approvals.
