Keppel Corporation reported a net profit of $700.7 million (A$927 million) for the year ending 31 December 2022. The results were bolstered by the asset management segments and energy and environment, with the first $235 million (A$311 million) net. benefit of the period. However, it was still 9 percent below figures released in fiscal 2021.
The decline in net profit was primarily due to lower urban development gains, provisions for certain projects at Keppel Offshore & Marine (O&M) yard in the US and lower fair value gains on Keppel’s investment in Envision AESC .
The company’s FY2022 revenue from continuing operations of $5 billion (A$6.62 billion) was comparable year-on-year, supported by higher contributions from Asset Management, Energy & Environment and Connectivity, which offset a decrease in Urban Development revenues.
During the year, Keppel successfully divested Keppel Logistics and is currently in the final stages of implementing the proposed O&M operations, having received approval from Keppel shareholders at the Extraordinary General Meeting of company in December 2022.
As part of its pivot to an asset-light model, Keppel has announced more than $3.4 billion ($4.6 billion) in asset monetization since October 2020, raising $2.7 billion of dollars ($3.6 billion) in cash. During the year, the company announced about $2.1 billion in investments related to energy and the environment and sustainable urban renewal, made jointly by Keppel together with the private funds and/or business trust managed by Keppel Capital .
“Keppel continued to deliver a robust set of results amid a challenging environment in 2022, while accelerating the execution of our Vision 2030 strategy. Today, Asset Management led by Keppel Capital and our growing Energy segment and Environment led by Keppel Infrastructure are key pillars of Group earnings. Group recurring revenue more than doubled year-on-year, contributing 67% of our net profit for FY22, excluding discontinued operations” , said Loh Chin Hua, CEO of Keppel Corporation.
He further noted that 2023 will be an important year for Keppel as it takes the next leap forward in its Vision 2030 trajectory to be a global asset manager and operator, creating solutions for a sustainable future.
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