Sustainable solutions provider, Singapore’s Keppel Corp. is planning to undergo restructuring to transform itself into an asset manager focusing on green energy. The firm is claiming it to be its biggest-ever restructuring that would provide more stable revenue streams.
Keppel recently it sold its core offshore and marine business to local peer Semcorp Marine for S$4.5 billion ($3.3 billion).
Commenting on the firm’s transformation from being a diversified conglomerate to one integrated company, Keppel CEO Loh Chin Hua said, “This latest restructuring reflects a fundamental shift in how we organise ourselves to operate in a nimbler manner and harness technology to grow at speed and scale. It includes relooking at how Keppel is organised.The conglomerate with an $8.5 billion market value, which has operations ranging from data centres to renewable energy assets, will be divided into fund management, investment, and operating platforms under the restructuring. Keppel has a strong track record in the development and operation of real assets, such as renewables, clean energy, decarbonisation and environmental management solutions, green buildings as well as digital connectivity infrastructure.” He hoped that Keppel’s strong track record in renewables, clean energy, decarbonisation will not only generate recurring income and cash flows, but also contribute to sustainable development.”
He further informed that growing pool of investors including sovereign wealth funds and pension funds are interested in allocating more capital to alternative assets.”With our strong capabilities in these areas, we can play to our strengths,”he noted. The firm revealed in its statement that it plans to significantly raise its assets under management (AUM) to S$200 billion by 2030, with an interim target of achieving S$100 billion worth of AUM by 2026-end, which would be double as compared to the previous year.
In 2022, the firm commenced the Singapore’s first renewable energy electricity import from Lao PDR via a regional multilateral power trade.
Keppel is also developing the 600 MW Keppel Sakra Cogen Plant, which will be Singapore’s first hydrogen-ready and most advanced, high-efficiency combined cycle gas turbine power plant. The firm further informed that to achieve low-carbon economy, it is exploring green ammonia and green hydrogen solutions with international partners.
