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Cityspring Trust swings into profit in Q4; DPU at 0.82¢

CITYSPRING Infrastructure Trust on Wednesday reported a distribution per unit (DPU) of 0.82 Singapore cents for the fourth quarter ended March 31, 2015, unchanged from the year-ago period. This brought the group's FY2015 DPU to 3.28 cents.

Over the same period, the group's net profit stood at S$9.55 million, compared to a net loss of S$3.7 million in the corresponding period last year. This was despite a 10 per cent drop in its revenues to S$121.46 million over the same period, compared to S$134.98 million in the corresponding year ago period.

The decrease in revenues were due to lower contributions from its subsidiaries City Gas Trust and SingSpring Trust as a result of lower town gas tariff and lower fuel costs respectively.

However, the decline was partially offset by an improved performance from its Australian subsidiary Basslink, which recorded higher revenues due mainly to a positive commercial risk sharing mechanism (CRSM) of A$3.9 million (S$4.5 million) in the fourth quarter of FY2015, compared to negative-A$2.4 million in the year ago period.

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For the 12 month period, the group's net profit stood at S$2.18 million, while its revenues was S$501.9 million.

Looking ahead, Cityspring expects that City Gas' cash earnings could fluctuate, depending on tariff changes in response to fuel costs changes.

It added that it has obtained approval to decrease gas tariff from 19.02 cents per kilowatt-hour (kWh) to 17.62 cents per kWh from May 1 to July 31 this year due to a drop in fuel costs compared to the previous quarter.

Meanwhile, the group announced that its proposed acquisition of the assets and liabilities of Keppel Infrastructure Trust has been approved by unitholders, and is expected to be completed on May 18 this year. It added that the replacement trustee-manager, Keppel Infrastructure Fund Management will assume responsibility as the trustee-manager for the enlarged trust.

Before the results were released on Wednesday, Cityspring closed unchanged at 58 cents.