Keppel posts over 25% rise in 9-month profit excluding M1 telco business, other non-core units

SINGAPORE – Global asset manager and operator Keppel said net profit for its core businesses – what it terms “New Keppel” – rose by over 25 per cent year on year for the nine months ended Sept 30.

This excludes its non-core portfolio for divestment and discontinued operations, which includes M1’s telco business, which has been reclassified as discontinued operations amid its

ongoing sale to Simba.

On the sale of M1’s telco business to Simba, Keppel said it aims to complete the proposed transaction by end-2025, subject to regulatory approval by Infocomm Media Development Authority.

The company also reiterated that it does not expect the outcome of legal proceedings on Liberty Wireless’ mobile virtual network arrangements with M1 to adversely affect or delay the completion of the proposed transaction.

Liberty Wireless is the parent company of Circles.Life.

In its business update on Oct 30, Keppel said the strong results of its core operations were underpinned by earnings growth across all three business segments – infrastructure, real estate and connectivity.

Keppel also noted that the non-core portfolio for divestment achieved a net profit, reversing its net loss from a year ago, without revealing the exact figures.

Bottomline net profit for the nine-month period rose over 5 per cent even after including accounting loss from the proposed divestment of M1’s telco business, “underscoring the resilience of the New Keppel’s business”, the company said.

Keppel does not disclose financial figures in its voluntary first quarter and nine-month business updates.

The group recorded close to 15 per cent year-on-year growth in recurring income, bolstered by higher contributions from both asset management and operating income, for the first nine months of 2025.

Keppel said the company is targeting another over $500 million in monetisation deals “over the next few months”, adding to a total of about $14 billion already announced over the course of the last five years.

This includes the monetisation of about $2.4 billion in assets, including the proposed divestments of M1’s telco business and Keppel’s interests in waste management firm 800 Super.

Keppel also announced that dividend payout will be based on New Keppel’s annual net profit.

The “New Keppel” excludes mainly legacy offshore and marine assets, residential land bank, selected property developments and investment properties, hospitality and logistics assets, associated cash and receivables, and other non-core investments.

It also excludes M1’s telco business, which has been recorded as discontinued operations pending the sale to Simba.

These assets are deemed by Keppel as not aligned with its strategic focus as an asset-light global asset manager and operator.

The company has repurchased $92.6 million in Keppel shares as at end-September, after the launch of a $500 million share buyback programme on 31 July 2025

From January 2022 to September 2025, Keppel returned $6.6 billion to shareholders via cash and in-specie distributions.

This translates to annualised total shareholder returns of 38 per cent, more than double of the Straits Times Index’s 14.5 per cent, the company said.

“Keppel is committed to a steady and sustainable dividend strategy that reflects the earnings performance of the New Keppel, with the final amount subject to the discretion of the board.

“As Keppel’s earnings profile becomes increasingly stable and recurring, the company aims to provide shareholders with consistent and steadily growing cash returns, while maintaining prudent capital allocation to support growth and an efficient capital structure.”

In addition, part of the cash unlocked from asset monetisation will be used to reward shareholders, Keppel said.

In the first nine months of 2025, Keppel generated $299 million in asset management fees and completed approximately $7.6 billion in acquisitions and divestments over at its fund management and investment platforms.

Keppel’s private funds added $6.7 billion to funds under management in that period, Keppel added.

A further $1.4 billion in new real estate and digital infrastructure acquisitions from Keppel’s listed real-estate investment trusts and infrastructure trust will be progressively added to funds under management as well .

Keppel also said it has a deal pipeline of about $35 billion, with more than half in the infrastructure and connectivity segments.

Keppel shares rose as much as 1.4 per cent to a record high of $10.03 on Oct 30. The stock pared gains and was up 0.5 per cent at $9.94 at the midday trading break.