Keppel Reports a Record Net Profit of S$3,627m for 1H23

■ Earnings

Keppel's revenue from continuing operations in 1H23 grew 11% to S$3,716 million from S$3,356 million in 1H22, underpinned by higher contributions from the Infrastructure and Connectivity segments. Overall net profit was S$3,627m, significantly higher than S$498m for 1H22. Excluding discontinued operations, net profit was S$445m vs S$434m for 1H22. Annualized ROE was 36.8%, 338% increase from 8.4% for 1H22. Average interest cost was 3.53%. Free cash outflow was S$732m, compared to outflow of S$127m in 1H22

Keppel's FUM is expected to reach S$100b by 2026 and S$200b by 2030, exploring organic and inorganic opportunities to drive growth.

■ Infrastructure segment

Net profit of Infrastructure segment was S$291m, more than double 1H22 of S$139m. Strong operating income growth was driven by higher net generation and margins from the integrated power business.

■ Real Estate segment

Net profit of Real Estate segment was S$186m, compared to S$262m in 1H22.

Lower operating income was mainly due to lower contributions from sponsor stakes, higher interest expense and costs incurred for new initiatives, as well as lower cost write-back in 1H23.

The lowering income was partly offset by higher Asset Mgmt Income due to higher acquisition fees (from an office tower in Seoul's CBD) and higher management fee relating to acquisitions completed in 2022.

■ Connectivity Segment

Net profit of Connectivity segment was S$37m, 12% higher 1H22 of S$33m, due to higher operating income as M1 continued to achieve higher revenue from enterprise ICT & managed services.

Source： Keppel