Keppel Posts Over 25% Profit Rise in Q1 Amid Asset-Light Shift

Singapore-listed Keppel Ltd (SGX:KPLM) reported a strong performance in the first quarter of 2025, with net profit—excluding its legacy offshore and marine (O&M) assets—rising more than 25% year-on-year. The growth was driven by robust recurring income and solid results from its infrastructure, real estate, and asset management segments.

When factoring in the legacy O&M assets, Keppel's net profit more than doubled compared to the same period last year, although the company did not disclose specific figures. The surge in profitability highlights the success of Keppel's ongoing transformation strategy to become an asset-light and recurring-income-focused enterprise.

Over 80% of the company's Q1 profit was generated from recurring income, underscoring the strength of its long-term revenue model. Asset management fees climbed 9% to S$96 million, reinforcing the segment’s growing contribution to overall earnings.

CEO Loh Chin Hua expressed confidence in Keppel’s positioning, noting that the company is "better placed to navigate volatility" in the face of ongoing global macroeconomic and geopolitical challenges.

With a strategic focus on sustainability and capital efficiency, Keppel continues to reposition its business for long-term growth. The company’s emphasis on stable income streams and disciplined capital allocation is expected to support future profitability and resilience amid uncertain market conditions.

The Q1 results reflect Keppel's successful pivot away from its traditional heavy-asset operations towards a more agile, income-generating model. As the group scales up its infrastructure and investment platforms, it remains well-positioned to deliver sustainable returns to shareholders.