Keppel Limited has reported earnings of $940.2 million for the FY2024 ended Dec 31, 2024, 76.9% lower y-o-y, due to the absence of divestment gains reported in FY2023. Earnings for the 2HFY2024, however, was up by 44.6% y-o-y to $636.0 million.
Earnings from continuing operations in FY2024 fell by 6% y-o-y to $832 million while Keppel’s legacy offshore and marine (O&M) assets and discontinued operations posted a net loss of $124 million compared to the $3.1 billion net profit in FY2023. The net loss was due to the absence of the gain of disposal of Keppel O&M, value losses from Keppel’s Seatrium shares compared to gains in FY2023, as well as higher financing costs and amortisation of Day 1 fair value loss on notes receivables as the Asset Co transaction was completed at the end of February 2023. The net loss was offset by write-backs of cost provisions and the recognition of indemnity claims in relation to the merger between Keppel O&M and Sembcorp Marine (SembMarine).
Excluding the company’s legacy O&M assets and discontinued operations, FY2024 net profit from continuing operations stood at $1.06 billion, 5% higher y-o-y. All three segments were profitable.
Revenue from continuing operations also fell by 5.2% y-o-y to $6.6 billion, dragged by the company’s real estate segment and infrastructure segment.
Keppel’s infrastructure segment saw revenue decline by 5% y-o-y to $4.64 billion for the FY2024 as the integrated power business saw lower revenue from a drop in wholesale prices in 2024. This was in line with the stabilisation of the power market in Singapore.
Asset management fee revenue grew on a y-o-y basis mainly due to acquisition fees relating to Keppel Infrastructure Trust (KIT)’s acquisitions in Germany and Australia. The higher revenue was also attributed to higher transaction and advisory fees on sponsor stakes and co-investments, partly offset by lower management fees from KIT.
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Real estate revenue fell by 17% y-o-y to $637 million due to lower revenue from property trading projects in China as there were fewer units completed and handed over during the period. The decline was partly offset by higher revenue from property trading projects in Singapore. Asset management fee revenue remained stable y-o-y.
Revenue from the connectivity segment stood relatively flat at $1.372 billion compared to $1.366 billion. During the year, higher divestment and acquisition fees from asset management and higher facility management, leasing commission and project management revenues from the data centre division were partly offset by lower handset & equipment sales from M1.
In FY2024, Keppel’s asset management fees rose by 54% y-o-y to $436 million. Its funds under management (FUM) surged by 2.4 times to $88 billion in 2024 from $37 billion in 2020. Recurring income made up 72% of the company's net profit, up from 56% in FY2022 and 21% in FY2021. In FY2023, recurring income made up 88% of net profit from continuing operations.
Keppel has announced close to $7 billion in the monetisation of its assets since beginning its asset monetisation programme in October 2020. The company has an interim target of $10 billion to $12 billion by the end of 2026. Including the $4.7 billion divestment of Keppel O&M in 2023, which isn't included in the interim target, the total asset monetisation conducted is $11.7 billion to date.
The board has proposed a final cash dividend of 19 cents, which will be paid on May 9. Including the interim dividend, Keppel’s total dividend for the year is 34 cents per share.
Shares in Keppel closed at $6.63 on Feb 4.
