Keppel Infrastructure Trust 9M distributable income up 59.2% at S$168.9 million on divestment gains
Its divestment gains of S$49 million come from the sale of its stake in Philippine Coastal and the partial sale of its stake in Ventura Motors
[SINGAPORE] Keppel Infrastructure Trust (KIT) on Tuesday (Oct 28) reported distributable income of S$168.9 million for the first nine months of 2025, up 59.2 per cent from S$106.1 million in the year-ago period.
This was attributed to higher contributions from piped-gas provider City Energy, its industrial-infrastructure business Ixom and Australian bus service business Ventura Motors, and a boost from S$49 million worth of divestment gains, KIT’s manager said in its third-quarter business update.
It recorded divestment gains of S$21.7 million from its sale of its 50 per cent stake in Philippine Coastal, completed on Mar 20, and of S$27.3 million from its sale of its 24.6 per cent stake in Ventura, completed on Aug 12.
Nine-month distributable income for the energy transition segment fell to S$81.4 million, down 25.9 per cent year on year from S$109.9 million, but was partially offset by higher contributions from City Energy.
The piped-gas provider posted an increase in funds from operations to S$41.1 million for the period, from S$36.4 million previously. It logged higher year-on-year town gas volume and service income and registered fuel cost over-recovery.
Distributable income for the environmental services segment fell 33.9 per cent year on year to S$31.9 million from S$48.2 million, mainly due to the Senoko waste-to-energy plant’s concession being extended at a lower rate.
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The distribution and storage segment posted a surge in distributable income of more than 100 per cent to S$81.5 million from S$29.9 million, due to contributions from Ventura and Ixom.
Ixom posted an increase in funds from operations to S$49 million for the period, from S$30.6 million, amid strong performance due to improved margins at the chemical manufacturing and distribution businesses.
Ventura’s funds from operations grew year on year to S$12.2 million, from S$8.9 million, amid stable operating performance. The manager noted that this was higher for the nine months of 2025 because the corresponding period for 2024 included only four months of contributions, following the acquisition of Ventura in June 2024.
In terms of capital management, the trust’s net debt stood at 4.6 times as at Sep 30, compared with 5.1 times as at Dec 31, 2024.
Its net gearing stood at 38 per cent, compared with 40.4 per cent as at end-2024. Interest coverage ratio rose to 13.1 times, from seven times as at December 2024.
Its weighted average cost of debt rose slightly to 4.65 per cent as at September, from 4.51 per cent as at end-December.
As part of its capital recycling strategy, KIT plans to redeploy around S$119 million of divestment proceeds for the proposed acquisition of subsea cable service provider Global Marine Group, marking its entry into digital infrastructure.
The proposed acquisition, announced in April, will help KIT capitalise on global digitalisation growth and is subject to unitholders’ approval at its extraordinary general meeting on Nov 11.
The remaining S$182 million of divestment proceeds will be deployed to yield-accretive opportunities, the manager said.
Units of KIT closed Monday unchanged at S$0.46.
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