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

SINGAPORE – Asset manager and operator Keppel reported a 20% increase in its net profit for the third quarter ended Sept 30.

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% 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 Oct 29.

The drop was due to a 4% 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% from a year earlier for the nine months ended Sept 30. The rise was led by stronger performance by the infrastructure and connectivity segments.

Loh Chin Hua, CEO of Keppel, said, “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% 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 $354 million in asset management fees, an increase of 18% year-on-year. It also completed about $4.5 billion in acquisitions and $3.5 billion in divestments.

Its infrastructure division recorded stronger year-on-year performance for the first nine months. Its integrated power business saw a 7% year-on-year growth in its earnings before interest, taxes, depreciation and amortisation (Ebitda), driven by contributions from its 600MW 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 $900 million, and Ebitda grew 110% year-on-year for the first nine months of 2026.

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