(Reuters) -Singapore’s Keppel Ltd reported a 25% rise in first-quarter net profit on Thursday, excluding its legacy offshore and marine assets, driven by strong performance in both its infrastructure segment and asset management.
Keppel, which was founded more than half a century ago as a shipbuilding yard, said the rise in net profit was driven by steady earnings at its infrastructure division.
Improved performance at its real estate segment and a strong contribution from the firm’s asset management section further added to Keppel’s bottom line.
The company said its asset management fees for the quarter increased by 9% year-on-year to S$96 million ($72.99 million).
Talking about the U.S. trade policy, CEO Loh Chin Hua said that “direct impact of the US tariffs on Keppel is expected to be limited.”
“However, a trade war … could affect us indirectly through higher supply chain costs, reduced market confidence, exchange rate risks and the pace of asset monetisation.”
The wave of crippling tariffs unleashed by the U.S. President Donald Trump has roiled global markets, with several Southeast Asian nations bearing the brunt.
Singapore was hit by Trump’s 10% base duty on imports. The U.S. had a goods trade surplus of $2.8 billion with Singapore last year, an 84.8% increase over 2023, according to the United States Trade Representative website.
Singapore, which has one of the world’s most open economies, is often seen as a bellwether for global growth as its international trade dwarfs its domestic economy.
Keppel is transitioning into an asset manager, aiming to oversee S$200 billion by 2030. It reported monetization of S$347 million in assets year-to-date and about S$4.9 billion in funds under management for the quarter.
While the company did not disclose detailed profit or revenue figures for the quarter, it said that its first-quarter net profit, including legacy O&M assets, more than doubled from last year.
($1 = 1.3153 Singapore dollars)
(Reporting by Rajasik Mukherjee & Sameer Manekar in Bengaluru; Editing by Tasim Zahid and Alan Barona)
