If You Invested $10,000 in Keppel 10 Years Ago, Here’s What You’d Have Today
The Smart Investor·2025-11-23 23:30

Core Insights - Keppel Corporation has transformed from a conglomerate heavily reliant on the offshore and marine (O&M) business to a global asset manager, with only 7.7% of its revenue coming from O&M in the first half of 2025 [2][4] - The company's share price has appreciated significantly, closing at $10.20 on 13 November 2025, representing a 136% increase from $4.32 in 2015, equating to a compound annual growth rate (CAGR) of approximately 9.0% [4][12] - Total returns for an investor who bought $10,000 worth of Keppel shares in 2015 would amount to around $35,242, reflecting a total return of approximately 252% and a CAGR of 13.4% [12] Financial Performance - In 2015, Keppel generated $5.4 billion in revenue and $757 million in net profit, while in the first half of 2025, revenue dropped to $3.1 billion with a net profit of $373 million due to the divestment of its largest business [14][15] - The company has consistently paid dividends, totaling $2.73 per share over the past decade, with a notable increase in dividends since the pandemic lows in 2020 [5][6] Shareholder Returns - Shareholders received additional returns through distributions of units in Keppel REIT and shares in Sembcorp Marine, which was restructured into Seatrium [9][10] - The total value of these distributions, along with capital gains and dividends, significantly contributed to the overall returns for investors [11][12] Strategic Transformation - Keppel's restructuring began in early 2021, focusing on exiting the offshore rig building business and merging its O&M operations with Sembcorp Marine [13] - The company aims to grow its assets under management (AUM) to $200 billion by 2030, with recent acquisitions and divestitures supporting this goal [14][16] Investment Lessons - The journey of Keppel over the past decade highlights the importance of a long-term investment perspective, the potential rewards of patience with dividends, and the benefits of strategic restructuring [17]