Keppel reported a 59 per cent decline in net profit for the first half of 2026, with earnings falling to S$154.7 million from S$377.7 million in the same period last year. Despite this drop, the company saw a 24.6 per cent increase in group revenue to S$3.8 billion, driven by strong performance in its infrastructure and connectivity segments. The overall profit decline was primarily attributed to a S$375 million net loss within its non-core portfolio, which the company is actively working to divest.
The non-core portfolio losses were largely fueled by S$165 million in impairments related to legacy rig assets, which also incurred additional interest costs. Furthermore, the company faced a S$65 million net loss linked to depreciation and amortisation adjustments following the termination of the sale of M1, its telecommunications unit, to Simba in May. Property-related non-core assets also contributed a S$32 million net loss, stemming from operating losses on investment properties and fair value adjustments.
While the non-core assets weighed heavily on the bottom line, Keppel highlighted the resilience of its core business, which it refers to as New Keppel. The core operations posted a 25 per cent rise in net profit, reaching approximately S$530 million. This growth was supported by higher recurring income from asset management and strong contributions from the infrastructure and connectivity arms. Following the results, Keppel shares closed 4.3 per cent lower at S$11.48. The company maintained its interim cash dividend at S$0.15 per share.