Keppel H1 net profit drops 59% to S$155 million on legacy rig impairments, M1 deal fallout
Keppel reported a 59% drop in net profit for the first half of the year, largely due to impairments on legacy rig assets and fallout from the M1 telco deal. Despite the decline, the company's core 'New Keppel' operations saw a 25% increase in profit.
Why it matters
The results reflect the challenges of restructuring legacy industrial assets while pivoting toward a new core business model in the asset management sector.
Group revenue rises 24.6% to S$3.8 billion; company points to 25% growth in core ‘New Keppel’ operations
[SINGAPORE] Asset manager Keppel on Thursday (Jul 30) reported a 59 per cent drop in overall net profit to S$154.7 million for the first half ended Jun 30, down from S$377.7 million a year earlier.
The group’s results were dragged down by a S$375 million net loss in its non-core portfolio. This included S$165 million in impairments on legacy rig assets – including recycled foreign currency translation losses.
Interest costs tied to legacy rigs and depreciation and amortisation adjustments following the termination of M1 telco’s sale to Simba in May also contributed to the net loss.
Shares of Keppel fell by 4.3 per cent or S$0.52 to close at S$11.48 on Thursday. The counter had risen 2.9 per cent to close S$0.34 higher at S$12 the previous day.
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