Keppel's Core Profit Rises Over 20% in Nine Months Even as Group Earnings Fall 40%

Singapore-based asset manager and infrastructure operator Keppel reported on Thursday, October 29, that net profit from its continuing core businesses rose by more than 20% in the first nine months of 2026, even as profit for the wider group fell 40%. The contrasting results reflect the company's separation of its growth operations from a portfolio of older assets earmarked for disposal.

Keppel calls its continuing business “New Keppel”. That measure excludes its non-core portfolio for divestment and discontinued operations. The company said the stronger core performance was led by its infrastructure and connectivity businesses, including electricity generation and data centres. The overall nine-month profit decline was largely associated with a 4% reduction in the gross asset value of the remaining non-core portfolio, according to reporting by Reuters and Singapore's Business Times.

The distinction matters because the two profit measures describe different scopes. A rise in core profit does not mean Keppel's total reported profit increased. The company said third-quarter group net profit rose 20% from a year earlier, while profit from the core business increased by close to 15% for the same three-month period. The nine-month comparisons are different: core profit grew by more than 20%, but group profit fell 40%.

Within infrastructure, Keppel's integrated power business recorded 7% growth in earnings before interest, taxes, depreciation and amortisation, or EBITDA, in the first nine months. The contribution included the Keppel Sakra Cogen power plant, which began commercial operations in May. In connectivity, Keppel reported growth in its data-centre-related operations and technology solutions business, which serves customers seeking computing and digital infrastructure capacity.

Keppel added S$19.5 billion in new funds under management during the year to date, Reuters reported. The company had already exceeded its goal of S$100 billion in funds under management by the end of 2026 in July. Funds under management describe assets overseen for investors; they are not the same as Keppel's revenue or profit.

The company also reported S$3.7 billion of asset monetisation so far this year, above its stated annual range of S$2 billion to S$3 billion. Asset monetisation means selling or otherwise realising value from investments and properties. The proceeds can support new investments, reduce borrowing or fund shareholder distributions, but those potential uses should not be treated as completed allocations.

Keppel said it intends to determine ordinary dividends with reference to earnings from its continuing core operations, while targeting special dividends equivalent to 10%–15% of realised proceeds from sales of non-core assets. These are company plans, not a guarantee of future payouts.

The October 29 business update therefore presents two simultaneous trends: stronger earnings in the operations Keppel intends to keep, and a continuing drag from the assets it is trying to exit. Investors will need to assess both measures rather than relying on a single headline profit-growth figure.

Sources: Reuters reporting carried by MarketScreener, October 29, 2026; The Straits Times reporting on Keppel's October 29 business update.