(Reuters) -Keppel posted higher first-half earnings and announced a share buyback programme on Thursday, as a recovery in the real estate business and resilient infrastructure operations helped underscore its pivot towards stable, recurring income streams.
The Singapore-based asset manager’s net profit for the six months ended June rose to S$431 million ($332.54 million) from S$345 million reported a year earlier.
The profit excludes mainly legacy offshore and marine assets, which are not aligned with the company’s asset-light focus.
With asset monetisation in progress, the company said it would buy back shares worth S$500 million, and pay an interim dividend of 15 Singapore cents apiece, same as last year.
Earnings from the company’s real estate division turned around in the first half of the year. The segment posted a net profit attributable of S$97.6 million, compared to a loss of S$19.6 million last year.
Keppel, which is transitioning into an asset manager with a target of overseeing $150 billion by 2030, said its funds under management increased to S$91 billion, as of June-end. It will now focus on monetising its $14.4 billion worth of none-core portfolio.
Net profit at the company’s infrastructure business climbed 8% to S$333 million.
Earnings from the segment are expected to grow further over the next few years as it adds more power capacity, including a new 600-megawatt power plant in Sakra that is set to start operations in the first half of 2026.
The company also plans to import 300 to 500 MWs of renewable energy starting from 2028.
($1 = 1.2961 Singapore dollars)
(Reporting by Rishav Chatterjee and Sherin Sunny in Bengaluru; Editing by Leroy Leo and Subhranshu Sahu)
