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Keppel Ltd: Powering Asia’s Smart and Greener Future with Strategic Partnerships and Robust Growth

Introduction: Keppel Ltd’s Vision for Sustainable Growth

Keppel Limited, a prominent asset manager and operator, is at the forefront of delivering sustainability solutions across energy, environment, urban development, and digital connectivity. With a comprehensive approach that spans critical infrastructure and investment platforms, Keppel is strategically positioned to serve a global client base while capturing the transformative trends of urbanization, digitalization, and energy transition in Asia.

Strategic Partnership with AIIB to Transform Asia-Pacific Infrastructure

• Five-Year Collaboration: Keppel has entered a landmark five-year partnership with the Asian Infrastructure Investment Bank (AIIB), aiming to mobilize up to US\$1.5 billion for sustainable infrastructure projects across the Asia-Pacific region.
• Focus Areas: The collaboration targets green, technology-enabled, and connectivity-driven infrastructure, including:
  • Renewable energy
  • Urban services
  • Power transmission
• Strategic Alignment: This partnership is closely aligned with Keppel’s strategy to leverage rapid market shifts toward sustainability and digital advancement. By combining AIIB’s financial strength with Keppel’s operational expertise, the initiative is set to expand Keppel’s infrastructure fund portfolio and propel long-term growth in the region.

Expanding District Cooling Systems into Singapore’s Healthcare Sector

• Pioneering Energy Efficiency: Keppel is actively exploring the integration of its upcoming district cooling system (DCS) plant in Jurong Lake District with Ng Teng Fong General Hospital and Jurong Community Hospital. If realized, this would mark Singapore’s first DCS deployment in a healthcare redevelopment project.
• Key Benefits:
  • Enhanced energy efficiency
  • Operational resilience
  • Release of critical space for patient care
• Regional Growth Potential: As demand for low-carbon urban utilities rises, Keppel’s leadership in sustainable infrastructure for mission-critical sectors positions it to scale DCS solutions regionally, especially in the healthcare sector.

Strategic Energy Partnership with Huawei: Advancing Smart, Low-Carbon Infrastructure

• Collaboration Details: Keppel Infrastructure has joined forces with Huawei to co-develop solar photovoltaic (PV) and battery energy storage solutions across Southeast Asia.
• Target Markets: The partnership will focus on interconnected power grids, data centres, and industrial parks, supporting the region’s energy transition.
• Technological Edge:
  • Real-time system monitoring
  • Smart demand response programmes to enhance grid stability and renewable energy efficiency
• Strategic Impact: This initiative reinforces Keppel’s standing as a regional leader in smart, low-carbon energy infrastructure, positioning it for long-term growth as Southeast Asia accelerates its transition to sustainable energy solutions.

Strong 1Q25 Performance: Robust Recurring Income and Profit Growth

• Impressive Profit Growth: Keppel reported a 25% year-on-year increase in net profit (excluding legacy Offshore & Marine assets) for 1Q25, reflecting the strength of its diversified business model.
• Key Drivers:
  • Strong and steady performance in the infrastructure segment
  • Higher contributions from the real estate segment
  • Strengthening asset management results
• High-Quality Earnings: Recurring income accounted for more than 80% of Keppel’s net profit (excluding legacy assets) in 1Q25, underscoring the company’s resilient earnings base.
• Asset Management Growth: Asset management fees rose by 9% year-on-year, reaching S\$96 million in 1Q25 compared to S\$88 million in the corresponding period last year.

Key Investment Highlights

Conclusion: Keppel’s Forward-Looking Strategy for Growth and Sustainability

Keppel Limited’s proactive partnerships and strategic expansions underscore its commitment to building a smart, green, and resilient future for Asia and beyond. Its collaborations with AIIB and Huawei, ambitious district cooling projects, and strong first-quarter results reinforce its role as a frontrunner in sustainable infrastructure. With a focus on recurring income, robust asset management, and innovation-driven growth, Keppel stands out as a compelling investment for those seeking exposure to Asia’s sustainable transition and infrastructure boom.