Keppel says little impact from Iran war so far but prolonged disruption could affect fund raising
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Keppel said it saw a slight drop in net profit for the January to March quarter on lower real estate contributions.
PHOTO: REUTERS
Bengaluru - Keppel chief executive Loh Chin Hua said the company has limited direct exposure to the Middle East conflict, with little impact so far, in its first-quarter business update on April 23.
The global asset manager and operator also said it saw a slight drop in net profit for the January to March quarter, excluding the non-core portfolio for divestment and discontinued operations.
Keppel said better results from infrastructure and connectivity segments were offset by lower contributions from the real estate segment, which had benefited from higher valuation and divestment gains a year earlier.
Recurring income improved slightly year on year, supported by higher income from operations and stable asset management net profit.
On the Iran war, Keppel chief executive Loh Chin Hua said the company has limited direct exposure to the Middle East conflict, with no notable impact so far. The company said its gas supply is diversified, with most of the gas procured through piped natural gas from Malaysia and some international liquefied natural gas cargoes.
“Our integrated power business has been resilient, supported by diversified gas supply and various mechanisms to shield against fuel cost fluctuations,” Mr Loh said.
But he added that “if there is a prolonged disruption to gas supply and an energy crunch, this could have broader impacts on energy security and the macroeconomic environment, which may in turn affect Keppel, including on fund-raising and asset monetisation”.
Mr Loh said Keppel is monitoring the situation closely and “will calibrate our response accordingly”.
The company, founded more than half a century ago as a shipbuilding yard, said its asset management fees rose 13 per cent year on year to $108 million in the January to March quarter.
Keppel has monetised $385 million assets so far in 2026, climbing towards its target of $2 billion to $3 billion of non-core asset monetisation for 2026. Its latest divestment, announced on April 22, was the sale of i12 Katong mall for $372 million.
Shares of Keppel fell 32 cents, or 2.7 per cent, to $11.71 as at 9.53am after its business update. REUTERS
With additional information from The Straits Times
