Keppel Q3 profit rises 20% on core growth

Key takeaways

Keppel’s Q3 net profit rose 20%, while New Keppel’s core profit increased close to 15%.
Nine-month group profit fell 40% after non-core asset values declined 4%.
Real estate monetisation exceeded S$2.4 billion, with special dividends targeted at 10% to 15% of proceeds.

According to The Business Times, Singapore asset manager and operator Keppel reported a 20% increase in net profit for the third quarter ended September 30, 2026.

“The New Keppel continued to perform strongly in both Q3 and 9M 2026, as we continued to execute our strategy as a global asset manager and operator focused on essential energy and digital infrastructure.” — Loh Chin Hua, CEO of Keppel

Company Snapshot

What it is: Keppel is a Singapore-based asset manager and operator.
Core businesses: Its continuing operations, called New Keppel, include asset management, infrastructure, connectivity and real estate activities.
Q3 profit: Group net profit increased 20% year on year for the three months ended September 30, 2026.
Property sales: Its real estate division announced more than S$2.4 billion in non-core property monetisation for the year to date.
Vietnam ambition: Keppel is exploring investment platforms that could raise up to $1 billion, mainly from third-party co-investors.

Core Performance

Excluding the non-core portfolio held for divestment and discontinued operations, New Keppel’s profit increased by close to 15% in the third quarter. Keppel attributed the improvement to stronger connectivity performance and steady infrastructure earnings.

The contrast was sharper over nine months. Group net profit fell 40% year on year, while New Keppel’s profit increased by more than 20%. The group decline followed a 4% reduction in the gross asset value of non-core assets remaining on the books, with impairments, depreciation and operating and holding costs contributing to the reduction.

Recurring income for the first nine months rose more than 10%, supported by asset management businesses, sponsor stakes, co-investments and the operating platform (The Straits Times). Keppel generated S$354 million in asset management fees during the period, an 18% increase from a year earlier. It also completed approximately S$4.5 billion in acquisitions and S$3.5 billion in divestments.

Infrastructure also recorded stronger performance. The integrated power business’s earnings before interest, taxes, depreciation and amortisation increased 7%, with contributions from the 600MW Keppel Sakra Cogen Plant, which began operating in May 2026.

Connectivity remained focused on power-constrained markets and the expansion of its technology solutions business. Technology solutions revenue exceeded S$900 million, while segment EBITDA increased 110% in the first nine months.

Keppel’s fund management business added S$19.5 billion in new funds under management for the year to date. About half came from infrastructure and connectivity fund strategies, which the company linked to investor demand for energy and digital infrastructure investments.

Property Monetisation

The real estate division announced more than S$2.4 billion in non-core property monetisation during the year to date. This included a proposed divestment of a 51% interest in Keppel South Central to Keppel Real Estate Investment Trust.

Across the wider non-core portfolio, Keppel had about S$3.7 billion planned for divestment in 2026 to date. It had realised S$940 million during the year and expected approximately S$600 million more by the end of 2026 after completion of the sale of the first six legacy rigs to Keppel Offshore Fund. That would bring the likely 2026 total to more than S$1.5 billion, against a full-year target of S$2 billion to S$3 billion.

The company plans to determine ordinary dividends from New Keppel’s earnings. It also aims to pay special dividends equal to 10% to 15% of proceeds realised from non-core asset monetisation and will report changes in the gross asset value of the assets remaining on its books.

Vietnam Expansion

According to Mingtiandi, Keppel is exploring investment platforms for Vietnam real estate that could raise up to $1 billion, primarily through third-party co-investors. The company is one of 10 inaugural members of the Vietnam International Financial Centre in Ho Chi Minh City.

Keppel has built about 30 projects in Vietnam over four decades. Its first Vietnam real estate fund raised $400 million at its first close in 2020, below its $600 million target.

The immediate market response was modest. Keppel shares ended 0.3%, or $0.03, higher at $10.13 on October 28. The quarter’s headline figure was nevertheless S$2.4 billion in announced non-core property monetisation.