Keppel Limited says its net profit for the 3QFY2024 ended Sept 30, excluding the effects of its legacy offshore & marine (O&M) assets, was lower on a y-o-y basis. This was due to the absence of valuation and divestment gains in the group’s connectivity segment in 3QFY2023.
In the 9MFY2024, net profit was “comparable”. The effects of Keppel’s O&M assets comprise the profit and loss (P&L) effects from Seatrium’s shares, the vendor notes from Asset Co, as well as contributions from stakes in Floatel and Dyna-Mac.
That said, recurring income grew by 14% y-o-y in the 9MFY2024 due to strong contributions from asset management and operating income. No figures were given in the business update.
Year-to-date (ytd), Keppel had monetised some $730 million of its assets, which were mainly from real estate projects and legacy assets. Of the amount, $620 million were real estate projects. The group has monetised $6.1 billion in total since its asset monetisation plan was announced in October 2020.
In the 9MFY2024, Keppel has $27.5 billion worth of assets on its balance sheet compared to $32.3 billion as at the end of FY2021. Meanwhile, its funds under management (FUM) stood at $85 billion in the 1HFY2024, more than double the $42 billion figure posted as at the end of FY2021.
During the same period, Keppel’s asset management fees rose by 68% y-o-y to $299 million, with increases across all its segments, infrastructure, real estate and connectivity.
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Ytd, Keppel has raised around $700 million in equity and completed about $3 million in acquisitions and divestments, leaving the group with $25 billion worth of dry powder for development. As at the 9MFY2024, the group has $25 billion worth of deal flow pipeline as well, of which over half are in infrastructure and connectivity.
Growth in data centres
In its announcement on Oct 24, Keppel said it intends to expand its data centre portfolio to have a gross power capacity of 1.2 GW in the near-term, up from its current capacity of 650MW.
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About 220 MW of Keppel’s current capacity is in various stages of development. This includes the Keppel Data Centre Campus at Genting Lane and two other newer projects in Tokyo and Taiwan. Over three quarters of this capacity will come into service progressively from 2024 to 2027 and beyond.
“We are excited by the many opportunities ahead in infrastructure and the data centre space. Amidst rapid digitalisation, Keppel is well-positioned to meet the rising demand for AI-ready data centres from hyperscalers, with a premier portfolio of 35 data centres across Asia Pacific and Europe,” says Keppel CEO Loh Chin Hua.
The expansion will tap on Keppel’s access to multiple capital pools, power, cooling and other important capabilities and resources within the group’s integrated ecosystem, Loh adds.
Looking ahead, Keppel says it aims to have more than double its data centre FUM from $9 billion to $19 billion in the near-term with the upcoming Keppel Data Centre Fund III, as well as further co-investments from investors.
“The access to multiple pools of capital, beyond Keppel’s balance sheet, will accelerate the expansion of the company’s data centre power capacity,” states the group in its announcement.
Double energy supply in infrastructure
Keppel’s infrastructure segment also plans to double its energy supply to 3.0GW by 2030 through power generation and regional importation. This includes the 600 MW Keppel Sakra Cogen power plant, which was 77% completed as at end-September this year.
Shares in Keppel closed at $6.38 on Oct 23.
