Keppel (BN4) investor relations material

Executive summary

• Net profit for core operations rose 25% year-on-year to $530 million, driven by higher recurring income, asset management, and strong Infrastructure and Connectivity performance; FUM reached $106 billion by July, surpassing the $100 billion target ahead of schedule.

• Asset monetisation of $1.7 billion year-to-date keeps the company on track for its $2–3 billion full-year target, with significant progress in digital and energy infrastructure, including Bifrost commercialization and Keppel Sakra Cogen Plant launch.

• Non-Core Portfolio recorded a net loss of $375 million due to rig impairments and related costs, resulting in overall net profit of $155 million, down 59% year-on-year.

• Free cash flow improved to an inflow of $570 million from an outflow of $48 million a year ago; interim dividend of $0.15 per share declared, unchanged year-over-year.

• Infrastructure and Connectivity divisions delivered over 50% net profit growth year-on-year, offsetting weaker Real Estate results.

Financial highlights

• Group revenue increased 25% year-on-year to $3,807 million, led by a 27% rise in Infrastructure revenue.

• Net profit for core operations: $530 million, up 25% year-on-year; overall net profit: $155 million, down 59% due to non-core losses.

• Recurring income rose 13% year-on-year to $467 million; SSCI profit surged to $175 million from $18 million.

• Free cash inflow of $570 million in 1H26, reversing a $48 million outflow in 1H25.

• Annualised ROE for core operations: 15% (up from 14.7%); overall ROE: 3.6% (down from 7.2%).

Outlook and guidance

• Asset monetisation program on track, with a clear pathway to monetize up to $3.7 billion of legacy rigs via Keppel Offshore Fund.

• FUM goal raised to $200 billion by 2030, with a robust deal pipeline across Infrastructure, Real Estate, and Connectivity.

• Continued focus on scaling asset management, digital and energy infrastructure, and capturing growth in AI-driven sectors.

• M1 to pursue cost savings, performance enhancement, and industry consolidation opportunities.