Keppel Corp Ltd Ord (KPELF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Our net profit from continuing operations was $1.06 billion in FY24, about 5% higher than the $1.02 billion in FY23, excluding the effects of the legacy offshore and marine assets. Including these effects and the discontinued operations, our net profit was $940 million for FY24. All three segments were profitable in 2024, with infrastructure delivering robust results and connectivity recording 45% in earnings growth year-on-year. Asset management fees in FY24 grew strongly by 54% to $436 million as we selectively made investments and also raised our funds under management from $55 billion to $88 billion through organic and inorganic growth. FY24 also saw a free cash inflow of $901 million compared to a free cash outflow of $384 million in the prior year. Supported by our asset-light strategy, our return on equity has been steadily improving over the years. Financial Year 2024, our ROE from continuing operations reached 10.1%, excluding the effects of the legacy O&M assets, compared to 7.9% two years ago in FY22. Since embarking on our ambitious $17.5 billion asset monetisation programme in October 2020, We have announced close to $7 billion in assets monetised, including some $1.5 billion in 2024. We are making good progress towards our interim target of $10-12 billion by the end of 2026. The asset monetisation announced does not include the divestment of capital O&M, which would have added another $4.7 billion, bringing our total monetisation to date to about $11.7 billion. Looking ahead, having taken over full control of AssetCo, we will focus on de-risking our legacy O&M assets, which include AssetCo's Ricks and our stake in Flotel, with a carrying value of approximately $3.6 billion as at the end of 2024. Taking control of asset core, including the $1.1 billion c...