KEPPEL reported a 6.3 per cent fall in revenue to S$1.5 billion for the first quarter ended Mar 31, compared to S$1.6 billion in the previous corresponding period.
Net profit for the quarter was up on the year, driven by stronger performance in the infrastructure and connectivity segments, excluding the effects of its legacy offshore and marine (O&M) assets, said the group without disclosing its net profit figure on Thursday (Apr 25).
It added that including the effects of the legacy O&M assets, Q1 net profit was lower.
The legacy assets’ effects comprise the profit and loss effects from Seatrium shares, financing costs relating to the Vendor Notes, as well as contributions from stakes in Floatel and Dyna-Mac.
The global asset manager and operator attributed the “comparable” year-on-year revenue to increases in the contributions from infrastructure and connectivity, offsetting lower revenue from the real estate segment.
Its net gearing ratio stood at 0.9 as at Mar 31, unchanged from the end of 2023. As at end-March 2024, about 64 per cent of Keppel’s borrowings were on fixed rates, with an average cost of funds of 3.8 per cent and a weighted tenor of about three years.
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Loh Chin Hua, chief executive of Keppel, said that the group, on track of its transformation into a global asset manager and operator, registered a 51 per cent rise in recurring income for the quarter, with stronger contributions from both asset management and operating income.
“We are also progressively de-risking our investments, with the receipt of S$71.3 million in cash from Asset Co, as well as the proposed divestment of one of our landbanks in Wuxi, China for a consideration of S$161.6 million,” Loh added.
Since the start of 2024, Keppel has reported the monetisation of about S$170 million in assets, mainly from the proposed divestment of Wuxi residential project.
Asset management fees for the quarter stood at S$88 million, 52 per cent higher on the year.
In the year to date, the group has raised about S$436 million in equity, and completed about S$1.1 billion in acquisitions and divestments.
With 19 active private funds, Keppel said it plans to launch three new funds for data centres, education assets and private credit in 2024 to fuel organic growth. It is also pursuing a quality deal flow pipeline of over S$14 billion, the majority of which is in the infrastructure and connectivity segments.
“Amidst the volatile environment, we see exciting opportunities as investors’ growing preference for defensive, cashflow generative assets is driving demand for alternative real assets in infrastructure and private credit, where Keppel has strong expertise,” said Loh.
Shares of Keppel : BN4 0%closed up 1.1 per cent or S$0.08 at S$7.11 on Wednesday.