Singapore, February 5, 2026, 15:07 (SGT) — Regular session
Shares of Keppel Ltd (SGX:BN4) jumped 5% to reach S$11.50 at 1.10 p.m. on Thursday, hitting their highest level in over 12 years. The surge followed the company’s report of stronger full-year profits and an announced special dividend. By that time, roughly 9.8 million shares had traded.
The rally counts because Keppel’s shares are once again all about execution: steady income, asset disposals, and how much capital it can redeploy without straining the balance sheet. Investors are also wrestling with how to slot the company’s infrastructure and digital assets into an “AI buildout” theme—without getting charged twice.
Keppel reported a 39% jump in net profit for the “New Keppel” — which strips out non-core assets and discontinued operations — hitting S$1.1 billion in 2025. The board put forward a final cash dividend of 19 Singapore cents per share, plus a special payout around 13 cents. That special payout includes 2 cents in cash and one Keppel REIT unit for every nine Keppel shares, a dividend in-specie paid in assets instead of cash. Together, this brings the total proposed FY2025 distribution to roughly 47 cents per share. At Wednesday’s closing price of S$10.95, Keppel pegged that at a 4.3% yield. CEO Loh Chin Hua said the company is “well-positioned … by providing energy and connectivity solutions amidst increasing digitalisation and the AI wave”. Keppel
Keppel reported a 29% jump in profit from continuing operations to S$1.02 billion, fueled by stronger showings across its three divisions and a rise in recurring income. The infrastructure segment pushed annual net profit up 18% to S$803 million, even with weaker spark spreads — the margin between power prices and gas costs that impacts generator profits. Meanwhile, the connectivity unit saw a 17% boost. Funds under management climbed to S$95 billion, with Keppel reaffirming its S$100 billion goal by end-2026. The STI slipped 0.2% as Keppel’s shares hovered around S$11.31 early on.
Keppel announced that deputy chairman Piyush Gupta will step up as non-executive chairman and independent director once the April 17 annual general meeting wraps up. He’s taking over from Danny Teoh, who’s retiring. Gupta commented, “I look forward to working closely with the board and management to continue driving Keppel’s growth story.” CNA
Keppel’s headline cash return masks some complexity. Including discontinued operations, full-year profit dropped 16% to S$788.5 million, weighed down by a S$222 million accounting loss tied to the planned sale of M1’s telco business, still awaiting regulatory approval, a filing revealed. Revenue from continuing operations climbed 3.4% to just under S$6 billion.
Spark spreads can narrow quickly if gas prices spike or electricity demand drops. That would directly impact the division carrying the bulk of the workload.
The in-specie portion of the special dividend moves along with Keppel REIT’s unit price until the payout is finalized. This isn’t the same as receiving a straightforward cash cheque.
Shareholders face a vote at the April 17 AGM, with the final dividend scheduled for May 8. Traders want details on the M1 timeline and how fast Keppel can convert asset sales into fresh payouts.
