(Reuters) -Singapore's Keppel (OTC:KPELY) on Thursday posted a rise in first-half underlying profit on upbeat performances at its infrastructure and connectivity segments, with the company moving ahead in its transition into a global asset manager.
The conglomerate's net profit from continuing operations for the six-month period ended on June 30 came in at S$513 million ($384 million), a 7% rise from S$481 million last year.
Long-term technology solutions and energy services contracts expanded by more than 20% to S$5.2 billion at the infrastructure division for the period.
From such technology and energy contracts, the company generates about S$40 million in recurring annual earnings, it said, aiming to raise that to more than S$100 million a year by fiscal 2027.
"All segments were profitable with stronger earnings in the Infrastructure and Connectivity segments more than offsetting a decline in Real Estate contributions," Keppel said.
The company said its plan to transition into a global asset manager and operator is "bearing fruit" as its asset management profit more than doubled during the half-year to S$75 million.
Keppel also completed its initial buy of 50% of European real estate manager Aermont Capital, and said both of them are "in position to seize opportunities to acquire attractive assets that may become available when markets go through dislocations."
Keppel, which has a target of overseeing $150 billion in assets by 2030, declared an interim dividend of 15 Singapore cents per share, in line with last year's payout.
Including legacy offshore and marine (O&M) assets such as profit and loss effects from Seatrium shares, among others, Keppel's profit during the six months fell to S$304 million, compared to S$445 million a year earlier.
Keppel sold its O&M business last year for $4.5 billion to Seatrium.
($1 = 1.3347 Singapore dollars)