Keppel Delivers in Line, Robust First-Half 2022 Results; Proposed O&M Merger on Track

Keppel’s first-half 2022 net profit of SGD 498 million is largely within our expectations, with weaker property earnings offset by stronger infrastructure and offshore and marine, or O&M, contributions. We keep our fair value estimate at SGD 7.30. While we like Keppel’s diversified business and its strategy to unlock asset values, we believe these have been largely priced-in. First-half 2022 dividend per share increased by 25% year on year to SGD 0.15 while the SGD 500 million share buyback program is 73% utilized. We expect the firm to continue to engage in shareholder-friendly actions.