Keppel Q1 Earnings Up by Over 25%, Sees Limited Direct Hit From Tariffs

Counter jumps 3% on news of improved real estate, asset management returns

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Keppel's net profit rose more than 25 per cent for the first quarter ended March, driven by improvements in its real estate and asset management arms.

The earnings exclude legacy offshore and marine assets such as shares of Seatrium and legacy rigs remaining from the company's divestment of its offshore and marine business in 2024. Including these assets, profit would more than double due to reduced losses from the legacy portfolio.

The news sent Keppel shares surging as much as 4.3 per cent to $6.68, before they closed up 3 per cent at $6.59 on April 24.

Looking ahead at the impact from US tariffs, Keppel was cautiously optimistic.

Its chief executive Loh Chin Hua said: "The direct impact of the US tariffs on Keppel is expected to be limited, as Keppel is not engaged in the manufacturing or export sectors."

"However, a trade war would be highly detrimental to the international economy, and could affect us indirectly through higher supply chain costs, reduced market confidence, exchange rate risks and the pace of asset monetisation," he cautioned.

Still, the company's stronger recurring income would enhance its ability to navigate volatility, Mr Loh said.