PRIMING FOR GROWTH
Under Vision 2030, Keppel will also sharpen its focus, simplify its business, double down on the key areas identified, and pivot away from lumpy earnings towards more recurring income.
In June 2021, it announced the proposed
combination of Keppel Offshore & Marine
(Keppel O&M) and Sembcorp Marine,
as well as the resolution of its legacy rigs.
Even earlier, in January 2021, Keppel had
announced the organic transformation of
Keppel O&M and that the Company would
exit the oil rig building business, after
completing the existing uncompleted rigs.
Keppel has also announced the proposed
divestment of its logistics business in
Southeast Asia and Australia. It has also
been progressively divesting its logistics
assets in China in the past two years.
Focused on making sustainability its
business, Keppel is deepening its presence
in areas spanning renewables, electrification,
carbon-free energy alternatives and
decarbonisation solutions, to expand
and fortify its capabilities in low-carbon,
circular economy solutions. Many of
Keppel Infrastructure’s new business pursuits
and research and development (R&D)
efforts in the past year were in these areas.
To scale up quickly to capture opportunities
arising from global energy transition,
Keppel will also seek opportunities to acquire
assets and stakes in established operating
platforms. In the longer run, Keppel is also
looking at developing solutions for carbon
capture, utilisation and storage (CCUS),
as well as new energy vectors, such as
green ammonia and hydrogen.
Keppel Land is transforming from a
traditional real estate developer into an
asset-light provider of innovative and
sustainable urban space solutions. In 2021,
Keppel Land achieved substantial progress
monetising its landbank, and is also
embracing new business models such as
Real Estate as a Service, and expanding its
focus on sustainable urban renewal and
senior living solutions that can yield
potential streams of recurring income.
Mindful of the risks and opportunities
engendered by climate change, Keppel Land
is also exploring the development of
climate-resilient nearshore developments,
or “floating cities”, which could help to
mitigate the impact of rising sea levels.
Keppel Telecommunications & Transportation
is expanding its data centre portfolio and
exploring ways to reduce the carbon
footprint of data centres, with plans to
start the development of its innovative,
energy-efficient floating data centre in
Singapore in 2022, subject to regulatory
approval. Keppel has also collaborated with
partners to launch the Bifrost Cable System,
which when completed in 2024, is set
to meet the growing digital connectivity
needs between Southeast Asia and the
west coast of North America.
Meanwhile, M1 continues to advance
on its multi-year digital transformation
from a traditional telco into a cloud native
connectivity platform. Key milestones
in 2021 include the monetisation of its
network assets, growing its enterprise
business, rolling out its 5G Standalone
network and expanding 5G use cases.
Keppel Capital continues to grow its assets
under management, expanding its asset
classes and growing recurring fee income.
Amidst heightened concerns about inflation,
there is strong demand from investors for the
real assets that the Group manages, which
can serve as effective inflation hedges.
Increasingly, the Group is integrating its
capabilities across its focus segments to
work even more closely together to create
smarter and more sustainable solutions,
while leveraging third-party funds for growth.
Such OneKeppel integration would allow the
Group to address emerging opportunities
that may not be available to individual
business units, thus ensuring that the
whole is greater than the sum of its parts.