Keppel reports decline in net profit for 3Q2024

It also aims to expand its data centre capacity to 1.2 GW.

Keppel Ltd. reported a year-on-year decline in net profit for the third quarter of 2024, excluding the effects of its legacy offshore and marine (O&M) assets.

The decrease is primarily attributed to the lack of valuation and divestment gains in the Connectivity segment.

For the first nine months of the fiscal year 2024, the company saw a 14% increase in recurring income, driven by stronger contributions from both asset management and operating income.

Year-to-date, Keppel has successfully monetised approximately $730m in assets, mainly from real estate projects and legacy assets. This brings the total asset monetisation since October 2020 to about $6.1b, excluding its offshore and marine business.

Keppel's total assets have decreased by 15% from the end of 2021 to the third quarter of 2024, reflecting its strategy of asset-light, capital-efficient growth.

In contrast, Funds under Management (FUM) have more than doubled during this period, reaching S$85 billion as of the first half of 2024.

As of 30 September, about 60% of Keppel's borrowings were at fixed rates, with an average cost of funds of 3.85% and a weighted tenor of approximately three years.

“Amidst rapid digitalisation, Keppel is well-positioned to meet the rising demand for AI-ready data centres from hyperscalers, with a premier portfolio of 35 data centres across Asia Pacific and Europe,” CEO Loh Chin Hua said.

“We aim to expand our data centre portfolio at speed and scale from the current 650 MW gross power capacity to 1.2 GW in the near-term, leveraging our access to multiple capital pools, power, cooling and other important capabilities and resources within Keppel’s integrated ecosystem,” he added.