Keppel has reported 2HFY2023 earnings from continuing operations of $551 million, up 36% y-o-y, and has proposed a final dividend of 19 cents per share.
This brings its whole of FY2023 earnings to $4.1 billion, up 339% over FY2022, with divestment gains a key contributor to the record bottom line.
The full-year cash dividend of 34 cents is one cent over 33 cents paid for FY2022. Taking into account the distribution in-specie of Sembcorp Marine shares and Keppel REIT shares already made, Keppel shareholders will be receiving a total payout worth $2.70 for FY2023.
In its bid to become more of an asset manager than the industrial conglomerate it was, Keppel has been aiming for a bigger proportion of recurring income.
In FY2023, recurring income increased by 54% y-o-y to $773 million, making up 88% of the total FY2023 net profit from continuing operations.
Keppel says all of its three "horizontal segments" - a new reporting structure - were profitable in FY2023.
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Of these three, infrastructure gained the most with earnings up 135% y-o-y to $699 million thanks to higher energy prices.
Its real estate segment, with a significant exposure to China, was profitable despite the current pressures of that sector. Another segment, "connectivity", was profitable too.
In the years ahead, infrastructure is expected to be one of the fastest-growing asset classes, supported by the global energy transition and decarbonisation trends, as well as
rising demand for digital connectivity, Keppel says.
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As at end-December 2023, Keppel’s funds under management was up from $50 billion a year ago to $55 billion. This helped lift asset management fees by 6% y-o-y to $283 million.
This figure is set to grow by end of June, upon the completion of the acquisition of Aermont Capital, thereby lifting FUM further to $79 billion, closer to the 2026 interim target of $100 billion.
Loh Chin Hua, CEO of Keppel says the company has "harnessed" Keppel’s industrial roots to transform into a global asset manager and operator, with complementary business segments.
"Our strong investment track record, built up over 20 years, as well as our operating capabilities and domain knowledge, provide an unparalleled value proposition to the investors in our private funds, REITs and Trust.
"Investors also find our active value adding approach to creating superior returns appealing.
“Keppel’s shareholders have also benefited - and will continue to benefit - from our transformation," says Loh.
