Singapore – Keppel Ltd on Wednesday reported net profit of S$155 million for the six months ended Jun 30 2026, down 59 percent year-on-year, as impairments on legacy offshore rigs and other non-core assets outweighed a solid uplift in its core “New Keppel” operations.

Earnings per share were not disclosed. The board declared an unchanged interim cash dividend of 15.0 Singapore cents a share, payable on 21 Aug 2026.

New Keppel – which groups the group’s asset-light infrastructure, real estate and connectivity platforms – generated net profit of S$530 million, up 25 percent YoY. Recurring income within this core portfolio rose 13 percent to S$467 million, supported by higher asset-management fees and contributions from operating assets such as the recently commissioned 600 MW Keppel Sakra Cogen Plant and the fully commercialised Bifrost subsea cable.

By segment, Infrastructure delivered S$538 million in net profit, a 55 percent YoY rise driven by stronger power and decarbonisation earnings and S$178 million from sponsor stakes and co-investments (SSCI). Connectivity contributed S$77 million, up 54 percent on gains from data-centre and subsea-cable investments. Real Estate recorded a S$19 million loss, reflecting an in-specie dividend of Keppel REIT units and lower valuation gains; excluding the dividend impact, the segment would have posted a S$32 million profit.

Losses in the Non-Core Portfolio for Divestment widened to S$375 million, mainly after a S$165 million impairment on 13 legacy offshore rigs and suspended depreciation charges related to the aborted sale of M1’s telco business. These items pushed consolidated net profit lower and raised the group’s net-debt-to-EBITDA ratio to 6.7 times from 5.8 times at end-2025, although free cash flow swung to an inflow of S$570 million from an outflow of S$48 million a year earlier.

Strategically, Keppel surpassed its 2026 funds-under-management (FUM) target 18 months early, reaching S$106 billion by end-July. Year-to-date asset monetisations of about S$1.7 billion keep the group on track to realise S$2 billion–S$3 billion in divestments this year. A new Keppel Offshore Fund, backed by a US$1.5 billion commitment from Apollo, provides a pathway to offload up to S$3.7 billion of legacy rigs between now and 2028.

Chief executive Loh Chin Hua said the first-half performance underscores the benefits of Keppel’s transition to an asset-light model, noting that higher contributions from sponsor stakes and co-investments “will become an increasingly significant pillar” as FUM grows. He added that artificial-intelligence tools are already delivering annual cost savings of more than S$100 million and will be used to unlock new revenue streams.

Looking ahead, management maintained its full-year monetisation target and signalled an ambition to accelerate asset-management growth on the back of rising demand for sustainable power and digital infrastructure. Keppel is also pursuing new subsea cable routes to the Middle East and Japan and is exploring industry consolidation opportunities for its M1 telco unit while implementing a three-year plan to trim S$70 million in annual costs by 2028.