2022 was a transformational and productive year for Keppel on several counts.
First, we posted a robust set of results despite challenging macro conditions, bolstered by stronger earnings in Asset Management and Energy & Environment. The Group’s recurring income also more than doubled year on year, contributing to 67% of our net profit for FY 2022, excluding discontinued operations.
Our Energy & Environment segment saw a marked turnaround, driven mainly by Keppel Infrastructure’s strong performance. Asset Management also recorded an improvement in earnings, higher fee income, as well as better operating performance across assets under the REITs and business trust.
Urban Development’s performance was impacted by headwinds faced in China, though we are seeing improvements in China following the exit from its zero-COVID stance, as well as the introduction of more supportive policies that benefit the real estate sector. In Vietnam, while there have been delays in the approvals for new launches, market fundamentals remain strong, as seen from the strong demand for new homes launched.
Our Connectivity segment also did well, with M1 advancing its transformation into a cloud native connectivity platform. M1’s profits grew significantly, with the recovery in roaming, subscriber growth and higher revenue from its expanding enterprise business. Our integrated data centre business also continued to grow its portfolio, leveraging our asset-light model.