Keppel, which is shifting its profile from a conglomerate to an asset manager, has reported a more than 5% y-o-y increase in its earnings for its 9MFY2025 business update.
The company says that if its non-core portfolio for divestment and discontinued operations are excluded, earnings for the so-called "New Keppel" in the same period is up by more than 25% y-o-y.
In a sign of its new model gaining further traction, Keppel's recurring income was up by nearly 15% y-o-y.
"These results reflect the strong momentum achieved in both asset management and operations, and our efforts to drive asset monetisation," says CEO Loh Chin Hua.
In the first nine months of the year, its private funds raised a total funds under management of $6.7 billion, with another $1.4 billion by its REITs and infrastructure trust on the way.
On the other hand, Keppel divested $2.4 billion worth of assets, including $1.3 billion from the planned sale of M1's mobile business and also from the sale of waste collector Super800.
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Since October 2020, when Keppel embarked on its asset monetisation programme, it has sold some $14 billion worth of businesses, including Keppel Offshore & Marine.
The company aims to monetise another $500 million over the next few months.
Since the launch of its $500 million share buyback programme in July, the company has bought back $92.6 million worth as at the end of September.
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Keppel says that from January 2022 to September 2025, it has returned $6.6 billion to shareholders via cash and in-specie distributions, achieving total shareholder returns of 38%, versus the Straits Times Index’s 14.5%.
The company plans to refine its dividend policy to be in line with its changing profile as an asset manager, which is able to achieve "increasingly stable and recurring" earnings.
"The market increasingly recognises Keppel as a global asset manager and operator, and has started re-rating the company as we execute our growth strategy," says CEO Loh.
"We will remain focused on driving growth and total shareholder returns," he adds.
Keppel shares closed at $9.89 on Oct 29, up 0.51% for the day.
