Singapore's Keppel Ltd reported a 25 per cent rise in first-quarter net profit on Thursday (Apr 24), excluding its legacy offshore and marine assets, driven by strong performance in both its infrastructure segment and asset management.

Keppel, which was founded more than half a century ago as a shipbuilding yard, said the rise in net profit was driven by steady earnings at its infrastructure division.

Improved performance at its real estate segment and a strong contribution from the firm's asset management section further added to Keppel's bottom line.

The company said its asset management fees for the quarter increased by 9 per cent year-on-year to S$96 million (US$72.99 million).

Talking about the US trade policy, CEO Loh Chin Hua said that "direct impact of the US tariffs on Keppel is expected to be limited."

"However, a trade war ... could affect us indirectly through higher supply chain costs, reduced market confidence, exchange rate risks and the pace of asset monetisation."

The wave of crippling tariffs unleashed by the US President Donald Trump has roiled global markets, with several Southeast Asian nations bearing the brunt.

Singapore was hit by Trump's 10 per cent base duty on imports. The US had a goods trade surplus of US$2.8 billion with Singapore last year, an 84.8 per cent increase over 2023, according to the United States Trade Representative website.

Singapore, which has one of the world's most open economies, is often seen as a bellwether for global growth as its international trade dwarfs its domestic economy.

Keppel is transitioning into an asset manager, aiming to oversee S$200 billion by 2030. It reported monetisation of S$347 million in assets year-to-date and about S$4.9 billion in funds under management for the quarter.

While the company did not disclose detailed profit or revenue figures for the quarter, it said that its first-quarter net profit, including legacy O&M assets, more than doubled from last year.

Keppel drops 2.71% at 11:02 am, Apr 28th.

Source: Reuters/ec