Keppel Holdings reported a 59% drop in net profit attributable to shareholders for the first half of fiscal year 2026, falling to approximately S$154.7 million from about S$377.7 million a year earlier. The company announced this on July 30, 2026, alongside its first-half earnings results [1, 2, 3, 4, 5, 6, 7, 8, 9, 10].
Revenue for the period rose 24.6% year on year to about S$3.8 billion, reflecting growth in its core businesses [1, 2, 3, 4, 5, 6, 7, 8, 9, 10]. The sharp profit decline was mainly due to a S$375 million net loss in Keppel's non-core portfolio. This included S$165 million in impairments on legacy rig assets [1, 2, 3, 4, 5, 6, 7, 8, 10]. Additional negative impacts came from higher depreciation, amortisation adjustments, and interest costs linked to legacy rigs, stemming from the May 2026 termination of the M1 Telco sale to Simba [1, 2, 3, 4, 5, 6, 7, 8, 9, 10].
Excluding the drag from the non-core portfolio, Keppel's "New Keppel" core business posted a 25% increase in net profit to about S$530 million, up from around S$424 million in H1 FY2025. Keppel CEO Loh Chin Hua said, "It will do so for subsequent earnings as this new reporting approach mirrors its business model and provides greater clarity on the performance of its core business" [2, 3, 4, 5, 6, 7, 8, 9, 10].
The real estate segment swung to a net loss of approximately S$19 million from a net profit of about S$98 million a year earlier. This was mainly due to a dividend in-specie loss related to Keppel REIT units [2, 3, 7, 8, 10]. Meanwhile, the connectivity segment posted a 93% revenue rise to about S$682 million, driven by fiber commitments from the Bifrost Cable System and contributions from Keppel DC REIT. Its net profit increased 54% to roughly S$77 million [2, 3, 7, 8, 10].
Keppel's infrastructure business saw net profit rise 55% to S$538 million, boosted by higher generation and retail sales after the Keppel Sakra Cogen plant began operations in May 2026 [10]. The company also disclosed first-time contributions of about S$175 million from sponsor stakes and co-investments, up from S$18 million in H1 2025 [10].
Keppel declared an interim cash dividend of S$0.15 per share, unchanged from last year, and continues its S$500 million share buyback program, having repurchased 34.2 million shares so far [2, 4, 11, 5, 6, 9].
Keppel shares fell between 4.3% and 5.4% on July 30, closing between S$11.35 and S$11.48 after the earnings announcement. The previous day, shares rose 2.9% to close at S$12 [3, 4, 11, 5, 6, 7, 8, 9, 10].
