Singapore-based asset manager and infrastructure operator Keppel has reported more than 20 per cent growth in its net profit for the first nine months of 2026, supported by stronger performance in its infrastructure and connectivity businesses.
The company’s latest business update, released on October 29, highlights the growing contribution of energy infrastructure, data centres and asset management to its continuing operations.
However, despite the strong performance of its core businesses, Keppel’s overall net profit declined by 40 per cent during the same nine-month period because of weaker valuations and costs associated with assets earmarked for divestment.
The contrasting results highlight the company’s ongoing transformation as it shifts towards becoming a global asset manager and operator focused on essential energy and digital infrastructure.
Infrastructure and Connectivity Drive Profit Growth
Keppel’s continuing core business, known as New Keppel, recorded more than 20 per cent growth in net profit for the first nine months of 2026 compared with the same period last year.
Its infrastructure division delivered stronger earnings, particularly through its integrated power business, which recorded a 7 per cent increase in earnings before interest, taxes, depreciation and amortisation.
The improvement was supported by the commercial operations of the 600-megawatt Keppel Sakra cogeneration plant, which began operating in May 2026, alongside improvements in operational efficiency.
The company’s connectivity division also contributed to the growth, benefiting from its expanding data centre portfolio and technology solutions business.
Keppel has increasingly focused on markets where electricity availability is becoming a major challenge for data centre operators, particularly as demand for artificial intelligence and cloud computing infrastructure continues to increase.
Overall Nine-Month Profit Falls 40 Per Cent
Despite the improvement in its continuing operations, Keppel’s overall net profit for the first nine months of 2026 declined by 40 per cent year on year.
The decline was primarily attributed to a 4 per cent reduction in the gross asset value of its non-core portfolio, which includes businesses and assets earmarked for divestment as well as discontinued operations.
The reduction reflected impairments, depreciation, operating expenses and holding costs associated with those assets.
This distinction is important because the company’s reported results include both its continuing businesses and assets it is gradually disposing of.
Keppel said its third-quarter overall net profit increased by 20 per cent year on year, while New Keppel’s net profit rose by nearly 15 per cent during the same quarter.
The stronger performance suggests that the company’s continuing businesses are gaining momentum even as it works through its remaining legacy assets.
Keppel Adds S$19.5 Billion in New Funds Under Management
Another major development was Keppel’s expansion of its asset management business.
The company added approximately S$19.5 billion in new funds under management during the first nine months of 2026.
It had already surpassed its S$100 billion full-year funds-under-management target in July, several months ahead of schedule.
Its asset management fees also increased by 18 per cent to S$354 million during the nine-month period.
Meanwhile, net profit from its asset management business increased by 30 per cent, while earnings from sponsor stakes and co-investments grew 2.9 times compared with the previous year.
These figures highlight the increasing importance of recurring income and investment management activities to Keppel’s long-term business strategy.
The company also completed approximately S$4.5 billion in acquisitions and S$3.5 billion in divestments during the period.
Asset Sales Exceed Full-Year Target
Keppel has also accelerated efforts to dispose of non-core assets and unlock capital for future investments.
The company announced approximately S$3.7 billion in non-core asset monetisation transactions during the first nine months of 2026, exceeding its original full-year target of S$2 billion to S$3 billion.
Of this amount, approximately S$940 million had been realised by the end of the reporting period.
Another approximately S$600 million was expected from the planned completion of the divestment of the first six legacy rigs to Keppel Offshore Fund by the end of 2026.
The company also announced a proposed divestment of a 51 per cent stake in Keppel South Central to Keppel REIT as part of its property portfolio restructuring.
Keppel chief executive Loh Chin Hua said the proceeds from asset sales would help finance business expansion, reduce debt and provide returns to shareholders.
Data Centre Expansion Strengthens Keppel’s Digital Infrastructure Strategy
Keppel’s connectivity business remains an important part of its growth strategy as global demand for data centres continues to rise.
In August 2026, the company secured 50 megawatts of additional data centre capacity under Singapore’s second Data Centre Call for Application.
It also obtained a Facilities-Based Operator licence for the Kruger Subsea Cable System, which will connect Singapore to the Middle East, with branches serving South Asia.
These developments strengthen Keppel’s position in the digital infrastructure market, where reliable electricity supplies and international connectivity are becoming increasingly important.
Its technology solutions business also delivered significant growth.
Revenue expanded to more than S$900 million, while earnings before interest, taxes, depreciation and amortisation increased by 110 per cent year on year during the first nine months of 2026.
The business also secured S$615 million in new contracts across Singapore, Malaysia and Vietnam, bringing its total contract pipeline to approximately S$1.4 billion over the next five years.
Keppel Expands Its Energy and Sustainability Businesses
Beyond data centres, Keppel is also pursuing opportunities in lower-carbon energy and sustainable infrastructure.
In October 2026, the company was appointed as an aggregator for 120 megawatts of biomethane imports into Singapore under the country’s Biomethane Sandbox initiative.
The biomethane will be blended and used to generate lower-carbon electricity for energy-intensive industries, including data centres.
Keppel’s infrastructure division also reported approximately S$8.1 billion in long-term contracted revenues from its decarbonisation and sustainable solutions businesses as of September 30, 2026.
These contracts provide revenue visibility over periods of approximately 10 to 15 years.
The company is also pursuing a tender pipeline worth approximately S$15 billion involving bids, tenders and proprietary developments.
Shareholders Could Benefit From New Dividend Strategy
Keppel’s transformation is also expected to influence how the company distributes profits to shareholders.
Under its revised structure, ordinary dividends will be determined by the earnings generated by New Keppel, which represents its continuing core operations.
The company also aims to distribute between 10 and 15 per cent of realised proceeds from non-core asset monetisation through special dividends.
This approach is intended to provide shareholders with a clearer understanding of the relationship between the company’s continuing earnings and proceeds generated from asset disposals.
Keppel shares rose as much as 2.4 per cent during Thursday’s trading session, following the announcement, outperforming the broader Singapore market.
The shares had closed 0.3 per cent higher at S$10.13 on October 28.
Keppel’s Transformation Faces Its Next Major Test
Keppel’s latest financial results demonstrate the growing contribution of infrastructure, energy and digital connectivity to its continuing business.
Its expanding funds under management, stronger data centre operations and increasing exposure to long-term infrastructure contracts provide important foundations for future growth.
However, the 40 per cent decline in overall nine-month net profit also illustrates the financial impact of managing and disposing of its remaining non-core assets.
The company’s ability to complete its planned divestments, control costs and sustain growth in its infrastructure and connectivity businesses will remain important factors for investors.
With artificial intelligence, cloud computing, electrification and sustainable energy reshaping global infrastructure demand, Keppel is positioning itself to benefit from these long-term trends.
Its next challenge will be turning that growing demand into consistent earnings and stronger returns for shareholders.
