Operating & Market Review

In 2022, Keppel continued to advance its Vision 2030 plans, simplifying and focusing its business, investing in new growth areas while executing its asset-light strategy.

During the year, the Group successfully divested Keppel Logistics¹. This was followed by Keppel Offshore & Marine’s combination with Sembcorp Marine, and the resolution of the legacy rig assets and associated receivables, which were completed by 28 February 2023.

In the next phase of Vision 2030, Keppel is accelerating its transformation from a conglomerate of diverse parts into a global asset manager and operator, with strong capabilities in energy and environment, urban development and connectivity, which is well positioned to seize opportunities through creating solutions for a sustainable future.

We continue to grow our assets under management (AUM), expanding our asset classes and growing recurring fee income. As at 31 December 2022, our AUM had crossed $50 billion, and we are working towards a target of $200 billion by the end of 2030.

As a centre piece of Keppel’s asset-light business, asset management is increasingly playing a critical role as a horizontal that pulls all operating units together to deliver value, as one integrated company. During the year, we announced about $2.8 billion worth of energy & environment and sustainable urban renewal-related investments, jointly undertaken by Keppel together with the private funds and/or business trust managed by Keppel Capital.

The investments included onshore and offshore wind energy assets in Europe, a waste management services platform in Korea as well as the development of Singapore’s first hydrogen-ready advanced combined-cycle power plant, among others. The ability to tap third-party funds allows us to make significant investments in our growth areas without relying solely on Keppel’s balance sheet.

Furthering our ambitions in renewables, clean energy and decarbonisation solutions, we commenced Singapore’s first renewable energy import, and are exploring green ammonia and green hydrogen solutions with international partners as we prepare the Group to support the low-carbon economy.

Keppel Land continued its transformation from a traditional real estate developer into an asset-light provider of innovative and sustainable urban space solutions. In 2022, it expanded its sustainable urban renewal offerings in Korea and also embarked on its first senior living community in China.

We are expanding our data centre portfolio and exploring ways to reduce the carbon footprint of data centres. During the year, we acquired new data centre assets in China and the UK. We also made good progress in the development of the Bifrost Cable System, which is set to meet the growing digital connectivity needs between Southeast Asia and the west coast of North America, when completed in 2024.

Meanwhile, M1 continues to advance on its multi-year transformation from a traditional telco into a cloud native connectivity platform. In 2022, M1’s enterprise business grew steadily to become a significant revenue contributor. At year end, M1 had achieved over 95% outdoor coverage in its 5G Standalone network rollout in Singapore and launched various 5G solutions providing fast-speed connectivity, immersive metaverse experiences and edge computing solutions.

To fully harness the Group’s synergies, we are driving integration across our operating units through the establishment of the One Real Estate, One Infrastructure and One Data Centre teams, which will evaluate and execute on opportunities in our focus areas.

With the world focusing increasingly on sustainable development, climate change and digitalisation, Keppel is in the right space and at the right time to provide solutions which are good for the planet, people and the Company. Guided by our focus on sustainability, leveraging an  asset-light model, and harnessing technology and the Group’s strong track record, Keppel will contribute to advancing sustainability, while accelerating growth.