Dispute settlement drags CitySpring Infrastructure Trust into the red in Q3

CITYSPRING Infrastructure Trust on Tuesday reported an unchanged distribution per unit (DPU) of 0.82 Singapore cents for its third quarter ended Dec 31, 2014.

This was despite a 7.3 per cent drop in revenue to S$120 million, hurt by lower contributions from its City Gas, SingSpring and CityNet segments.

Other operating expenses, due mainly to a Hydro Tasmania dispute settlement amount of A$6 million (S$6.4 million) further dragged its earnings into the red.

For the quarter, the trust posted cash losses of S$13.5 million, a reversal from cash earnings of S$14.7 million a year ago.

Before taking into account the dispute settlement amount and upfront costs related to the refinancing of Basslink bonds (Basslink being a subsidiary of CitySpring), both of which are non-recurring items, the group would have recorded Q3 cash earnings of S$12.1 million, it said.