Keppel lifts first-half net profit by 7% as key segments grow

Decline in real estate contributions offset by infrastructure, connectivity sectors

- Ven Sreenivasan

Improving performance at its infrastructure and connectivity segments lifted Keppel's first-half net profit from continuing operations by 7 per cent to $513 million, from $481 million a year ago.

This was despite a 13.2 per cent drop in top-line revenue to $3.22 billion for the six months to endJune, from $3.72 billion in the yearago period.

The results excluded write-offs of legacy offshore and marine (O&M) assets, following the sale of Keppel O&M. Including the effects of the legacy O&M assets, net profit from continuing operations was $304 million for the first half, compared with $445 million a year earlier.

The company declared an interim cash dividend of 15 cents per share, in line with last year's payout, to be paid on Aug 23.

Recurring income rose 14 per cent to $388 million, making up 76 per cent of the first-half net profit, with higher contributions from both asset management and operations.

During the January to June 2024 period, all segments were profitable with stronger earnings in the infrastructure and connectivity segments more than offsetting a decline in real estate contributions.

Commenting on the results, Keppel chief executive officer Loh Chin Hua said the company was making steady progress in its transformation into becoming a global asset manager and operator.