Keppel flags Middle East conflict’s indirect risks

Direct exposure remains limited.

Keppel has warned that a prolonged Middle East conflict could hit it through higher energy prices, disrupted gas supply, and wider macroeconomic shocks, even as its direct exposure to the region remains limited.

The company said its operations and maintenance work at the Domestic Solid Waste Management Centre in Qatar, Keppel Infrastructure Trust’s investment in a Saudi Arabian gas pipeline, and its rig charters in Saudi Arabia have not been directly affected so far.

Still, Keppel said second-order effects from an escalating conflict bear close watching, adding that a prolonged disruption to gas supply and an energy crunch could have significant impacts on Singapore and the region, alongside broader effects such as cost inflation and higher interest rates.

It said its gas supply is diversified across piped natural gas from Malaysia and international liquefied natural gas cargoes, whilst about two-thirds of its electricity contracts were long-term and hedged as at end-2025, providing some cushion against volatility.

Keppel also said the effect of higher energy prices on its data centre portfolio is not expected to be significant because more than 95% of its data centre leases are on power pass-through contracts that cover customers’ electricity bills.

Separately, the group said it had reduced its China residential landbank carrying value to about $900m at end-2025 from $3.1b at end-2017, sold its entire 5% stake in Seatrium for $429m as at 1 April 2026, and remained on track to reach $100b in funds under management by end-2026.

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