Keppel’s net profit soars to a record high of $4.1b in FY23

The company said its FY23 net profit is its highest in history.

Keppel recorded its highest-ever net profit in FY23 of $4.1b. Compared with FY22’s record of $927m, Keppel’s net profit more than quadrupled.

Keppel attributed its improved net profit to the  $$3.3b disposal gain from the divestment of its offshore and marine (O&M) business.

“Return on Equity (ROE) was 37.9% in FY23, compared to 8.1% in FY22,” the company reported.

Meanwhile, the company’s net profit from continuing operations was also higher in FY23, rising 19% YoY to $996m, excluding the discontinued O&M operations in both years and loss from the distribution in specie of Keppel REIT units. 

“All three horizontal segments – Infrastructure, Real Estate and Connectivity – were profitable in FY23, with Infrastructure’s net profit rising sharply by 135% YoY to $699m bolstered by the integrated power business,” Keppel reported.

“Despite challenging conditions in markets like China, the Real Estate segment continued to perform creditably and contributed a significant $426m to FY23’s net profit,” the company added.

Given its record-breaking net profit, Keppel proposed a final cash dividend of $0.19 per share, bringing its total cash dividend to $0.34 per share for FY23.

“[The] total FY23 distribution will reach about $2.70 per Keppel share, comprising cash and in-specie distributions of then Sembcorp Marine shares] and Keppel REIT units,” added Keppel.