Keppel Ltd Reports Modest Decline in First‑Quarter Profit
Keppel Ltd. (SGX: KEPPEL) announced its first‑quarter 2026 earnings on 23 April 2026. The company’s net profit for the quarter, excluding non‑core portfolio disposals and discontinued operations, decreased slightly compared with the same period a year earlier.
Earnings Overview
| Item | 2025 Q1 | 2026 Q1 | Change |
|---|---|---|---|
| Net profit (excluding non‑core portfolio) | Not disclosed in the press release | Decline (exact figure not provided) | Slight drop |
The decline was attributed primarily to a weaker performance in the real‑estate division. The sector had benefited from higher valuation and divestment gains in the previous year, but those gains were not replicated in 2026.
Business Segments
- Real Estate – The division’s contribution to earnings fell, reflecting a downturn in property sales and rental income.
- Infrastructure and Connectivity – These segments performed better than expected and helped offset the real‑estate shortfall.
- Asset Management Fees – Fees rose 13 % year‑on‑year to S$108 million (US$84.67 million) in the first quarter, indicating solid fee growth despite the overall profit dip.
Strategic Context
Keppel highlighted its limited exposure to the ongoing Middle East conflict. The company reported no notable impact from the conflict to date. However, it cautioned that prolonged disruptions to gas supply and an energy crunch could influence its fundraising and asset monetisation activities. To mitigate such risks, Keppel’s gas supply remains diversified, with the majority of gas sourced via piped natural gas from Malaysia and supplemented by international LNG cargoes.
Keppel has monetised S$385 million of non‑core assets in 2026, moving toward its target of S$2 billion‑S$3 billion for non‑core asset monetisation.
Market Reaction
The share price closed at S$11.62 on 22 April 2026, below the 52‑week high of S$13.25 (recorded 24 February 2026) and above the 52‑week low of S$4.599 (recorded 11 May 2025). The company’s price‑earnings ratio stands at 20.191.
Conclusion
Keppel Ltd.’s first‑quarter 2026 results demonstrate a modest decline in net profit driven by real‑estate performance, while infrastructure and connectivity segments provide supportive growth. The company maintains a diversified energy supply and continues its strategy of monetising non‑core assets, positioning itself to navigate potential macroeconomic challenges related to energy security and global markets.
