SINGAPORE – Keppel’s overall net profit for the first half of 2026 fell after it booked losses arising from the failed sale of M1 and impairments to its legacy rigs.
The group is now overhauling M1 to cut $70 million in annual costs by 2028 and position the telco for future industry consolidation.
Keppel chief executive Loh Chin Hua said at the company’s results briefing on July 30 that measures introduced so far are expected to save $4 million a year, with yearly savings targeted to reach $10 million by the end of 2026.
Keppel had been nearing a deal to divest M1’s telecommunications business to Simba Telecom for $1.4 billion, but the move collapsed after Tuas Ltd – the Australian-listed parent company of Simba – said in May that it had terminated the sale-and-purchase agreement to acquire the shares in M1.
Keppel said that the termination was due to failure in obtaining relevant approvals from the Infocomm Media Development Authority in time.
Loh said Keppel’s non-core portfolio recorded a net loss of $375 million in the first half of 2026, due to depreciation and amortisation adjustments following the termination of the proposed M1 sale, as well as impairments and interest costs associated with its legacy rigs.
After accounting for these losses, the group posted an overall net profit of $155 million for the first six months of 2026, 59 per cent lower than the $378 million for the first half of 2025.
However, New Keppel, which excludes the non-core portfolio, reported strong results for the period, delivering net profit of $530 million.
This was 25 per cent higher than the $424 million recorded in the first half of 2025, driven by strong contributions from sponsor stakes and co-investments, as well as higher recurring income from asset management and its operating platform.
New Keppel also surpassed its end-2026 target of $100 billion in funds under management ahead of schedule, reaching $106 billion in July.
It also announced about $1.7 billion of asset sales year to date, putting it on track towards a full-year target of $2 billion to $3 billion, Loh said.
As part of its asset-light strategy, the group repositioned Hanoi Centre, its first retail mall in Vietnam’s capital, through a master lease arrangement under which it manages the property and tenant mix without owning the mall.
Officially opened on July 2, Hanoi Centre offers over 41,000 sq m of retail space and has attracted nearly 200 brands so far, including Northern Vietnam’s first adidas Brand Centre, Vietnam’s first Bershka store, Hanoi’s first Urban Revivo, as well as flagship stores from Pop Mart, Chanel and Zara.
Hanoi Centre also houses Galaxy CineX, one of the region’s most advanced experiential cinema complexes.
Loh added that New Keppel is also expanding its digital infrastructure and energy businesses.
He noted, for example, that the new 600 megawatt Keppel Sakra Cogen Plant, which began operations at the end of May, has raised the group’s power-generation capacity by 45 per cent. Earnings from its first month of operations helped offset weaker electricity-generation margins and costs arising from the Middle East conflict.
This contributed to a 9 per cent increase in the power business’s earnings before interest, taxes, depreciation and amortisation in the first half of 2026.
Keppel’s board has declared an interim cash dividend of 15 cents per share for the first half of 2026, unchanged from a year ago. This will be paid out on Aug 21.
Shares of Keppel were trading at $11.90 at 10am on July 30, up more than 16 per cent since hitting a low of $10.20 in May.
