Keppel (KPELY) AI Stock Analysis

Company Guidance

Management guided that the “new Keppel” is tracking well: H1 2026 new‑Keppel net profit was SGD 530m (up 25% YoY) versus group net profit of SGD 155m after a SGD 375m non‑core loss; recurring income rose 13% YoY to SGD 467m and SSCI profits jumped to ~SGD 175m (from SGD 18m). Cash metrics improved—group free cash flow swung to a SGD 570m inflow (new Keppel FCF +SGD 244m)—and balance‑sheet ratios showed group net debt/EBITDA of 6.7x while new Keppel’s was ~1.4–1.5x; annualised ROE for new Keppel ~15% (group ROE 3.6%). Asset‑management scale hit SGD 106bn FUM (surpassing the SGD 100bn 2026 target), YTD asset monetizations announced ~SGD 1.7bn (on track to SGD 2–3bn FY), realized non‑core monetizations ~SGD 560m at end‑June, expected cash from first six rig divestments ~SGD 611m (additional ~SGD 1.3bn from remaining four rigs in 2027–28), and gross non‑core asset value ~SGD 13.7bn. Other notable metrics: interim dividend SGD 0.15/share; Sakra Cogen 600MW (+45% capacity) contributed to Power EBITDA growth of 9% YoY; group cost savings >SGD 100m annual run‑rate and M1 cost‑save target SGD 70m run‑rate by 2028 (SGD 4m YTD, SGD 10m target by end‑2026).