Singapore’s Keppel Corporation reported a 5% rise in its full-year underlying profit, driven by robust performance in its connectivity segment, particularly in the data centre business. The company’s data centre operations saw an impressive 45% increase in annual net profit, reflecting the surging demand for digital infrastructure needed to support artificial intelligence services.
Keppel’s connectivity arm, which operates data centres that house servers and other computing equipment, has benefitted from the growing need for AI-driven digital infrastructure, particularly in the Asia Pacific region. As AI and other digital services expand, investments in data centres are expected to grow, further bolstering the company’s performance.
The firm, originally established over 56 years ago as a shipbuilding yard, has plans to more than double its data centre funds under management and increase its capacity, as announced in October. However, the highest-earning segment of Keppel’s infrastructure business saw a slight 4% decline in profit to S$673 million, largely due to lower fair value gains and reduced distributions from Keppel Infrastructure Trust.
Keppel’s net profit from continuing operations, excluding its offshore and marine assets, rose to S$1.06 billion ($784.20 million) in 2024, up from S$1.02 billion the previous year. The company, transitioning into an asset management firm, has set a target to manage S$200 billion in assets by 2030. As of December, its funds under management reached S$88 billion.
The company declared a final dividend of 19 Singapore cents per share, consistent with last year’s payout.