Keppel Corp is looking to sell about S$3 billion to S$5 billion (US$2.2 billion to US$3.7 billion) of assets over the next three years and redeploy the funds to seize new opportunities and improve returns.

The move comes as the firm executes long-term plans to build growth engines for the future, Keppel CEO Loh Chin Hua said at a virtual briefing on Tuesday.

“As we pursue our growth initiatives in data centres, environmental solutions, renewable energy, integrated urban development and asset management, we will also need to review our business portfolio from time to time,” added Loh, who did not disclose the segments earmarked for asset disposal.

Keppel, one of the world’s largest oil-rig makers, said it has identified assets with a total carrying value of about S$17.5 billion as of June 30 that can be sold off over time, with the proceeds channelled towards growth initiatives.

These include the group’s landbank, development projects, various funds and investments, as well as non-core assets such as Keppel O&M’s oil rigs. Loh declined to share more details, citing commercial sensitivity.

They do not include key business platforms, fixed assets such as Keppel O&M’s yards, or some of the group’s units in real estate or other investment trusts.

As well as the asset sales, Keppel Corp is running the rule over its offshore and marine business amid a challenging environment for the sector.

THE STRAITS TIMES (SINGAPORE)/ASIA NEWS NETWORK