Keppel (BN4) Q3 2024 earnings summary

Executive summary

• Asset management fees rose 68% year-over-year to $299m in 9M24, reflecting strong performance across all segments.

• Recurring income increased 14% year-over-year in 9M24, driven by asset management and operating income.

• Net profit for 9M24 was stable year-over-year, excluding legacy offshore & marine assets.

• Cumulative asset monetisation since Oct 2020 reached $6.1b, with $730m announced YTD 2024, mainly from real estate and legacy assets.

• Data centre capacity expansion planned from 650 MW to 1.2 GW in the near term.

Financial highlights

• Funds under management more than doubled from $42b at end-2021 to $85b in 1H24.

• Assets on balance sheet reduced by 15% since end-2021, reflecting asset-light strategy.

• 60% of borrowings were on fixed rates at an average cost of 3.85% and weighted tenor of ~3 years as of end-Sep 2024.

• Net profit for 3Q24, excluding legacy O&M, was lower year-over-year due to prior year valuation and divestment gains.

• Asset management fees: $299m for 9M24, up 68% year-over-year.

Outlook and guidance

• Plans to double power capacity by 2030 to meet Singapore's rising electricity demand, targeting 3 GW by 2030.

• Data centre capacity expected to expand from 650 MW to 1.2 GW in the near term, with $10b in additional funds under management.

• Targeting 2.5x EBITDA growth in decarbonisation and sustainability by 2027.

• Bifrost Cable System, a strategic digital infrastructure project, is 88% completed and expected to be ready for service in 2H 2025.

• Plans to double data centre FUM from $9b to $19b in the near term.