Keppel (BN4) H2 2024 earnings summary

Executive summary

• Net profit from continuing operations rose 5% year-over-year to SGD 1.06 billion (or $1,064m), excluding legacy O&M assets; including all effects, net profit was SGD 940 million for FY2024.

• All three business segments—Infrastructure, Real Estate, and Connectivity—were profitable, with Connectivity net profit up 45% year-over-year.

• Asset management fees surged 54% to SGD 436 million, with funds under management growing from SGD 55 billion to SGD 88 billion.

• Free cash inflow reached SGD 901 million, reversing a prior year outflow.

• Return on equity (ROE) improved to 10.1% from 9.5% year-over-year.

Financial highlights

• Recurring income was SGD 766 million, representing 72% of net profit from continuing operations.

• Adjusted net debt to EBITDA increased to 3.7x due to acquisitions and investments.

• Valuation gains rose to SGD 361 million, led by investment properties in Singapore and Vietnam.

• Annualized total shareholder return over three years was 34.8%.

• Total dividends and distributions in specie over three years amounted to SGD 3.37 per share.

Outlook and guidance

• Asset monetization program targets SGD 10-12 billion by end-2026, with SGD 7 billion achieved to date (excluding O&M divestment).

• FUM target of SGD 100 billion by 2026 and SGD 200 billion by 2030, with strong fundraising momentum despite challenging conditions.

• Additional annual cost savings of SGD 50 million targeted by end-2026, building on SGD 70 million already achieved.

• Continued focus on asset-light strategy, recurring income, and digital infrastructure expansion.

• Expanding data centre capacity by over 500MW in the near term and pursuing new subsea cable systems.