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Keppel Infrastructure Trust net profit down 10.4% at S$12.7 million

EARNINGS of Keppel Infrastructure Trust (KIT) for the full financial year ended Dec 31, 2014, were lower from a year ago due to lower production of NEWater, lower power tariff from plunging oil prices and higher trust expenses.

Profit was 10.4 per cent lower at S$12.7 million from a year ago.

This resulted in earnings per unit (EPU) of 2.02 Singapore cents for the year, which was 10.2 per cent lower compared with financial year 2013.

Distribution per unit (DPU) for the second half of FY2014 will remain at 4.69 Singapore cents.

Together with the distribution of 3.13 Singapore cents per unit for the first six months of FY2014, total distribution per unit for the year ended Dec 2014 is 7.82 Singapore cents.

The business trust, formerly known as K-Green Trust, on Monday reported a 2.5 per cent dip in revenue to S$65.5 million, weighed down by lower finance income and operation and maintenance (O&M) income.

Higher projection evaluation and due diligence expenses were incurred in connection with two proposed transactions made in November last year, driving trust expenses up 31 per cent to S$1.85 million.

The first proposed transaction worth about S$510 million, is the acquisition of a 51 per cent stake in Keppel Merlimau Cogen Pte Ltd, which owns the Keppel Merlimau Cogen Plant on Jurong Island.

The second is a proposed merger between KIT and CitySpring Infrastructure Trust (CIT), which would make the combined trust the largest Singapore infrastructure-focused business trust with total assets of over S$4 billion.

KIT said that the underlying performance of the three assets in its portfolio is expected to remain stable.

It added that its Ulu Pandan Trust's cash earnings could fluctuate as the trust hinges on changes in variable power revenue received from PUB and changes in electricity costs.

KIT shares closed unchanged at S$1.09, before the results were released.