Keppel Infrastructure Trust posts 1% higher H1 DPU of S$0.0199

[SINGAPORE] The trustee-manager of Keppel Infrastructure Trust (KIT) on Tuesday (Jul 28) posted a distribution per unit of S$0.0199 for its first half ended Jun 30, up 1 per cent on the year from S$0.0197.

Revenue for the period stood at S$1.3 billion, a rise of 13.8 per cent year on year from S$1.1 billion.

The figures reflect the trust’s “limited direct exposure to the Middle East conflict”, as it has a defensive portfolio supported by long-term contracts with cost pass-through mechanisms, it said.

Its business entities such as Ixom and City Energy experienced fuel cost under-recovery in the second quarter from the Middle East conflict, though the implementation of cost-optimisation measures contained the impact.

Fuel cost under-recovery refers to the financial gap that occurs when the actual cost of purchasing fuel is higher than the regulated retail price or collected surcharge rate.

Distributable income was also recorded at S$101.1 million for H1, down 15.3 per cent from S$119.4 million in the period a year prior.

This comes on the back of its gains of S$21.7 million from the sale of Philippine Coastal Storage and Pipeline Corporation in H1 2025.

The trust’s distributable income would have risen 1.2 per cent year on year from S$99.9 million before the divestment gain.

Net gearing of KIT as at Jun 30 is at 44.2 per cent, with an interest coverage ratio of 8.3 times.

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Keppel Infrastructure Trust Q1 distributable income down 17.3% at S$53.7 million

It also has dry powder of about S$700 million for debt-funded acquisitions to reach net gearing of 50 per cent, according to the trust.

Looking ahead, the trustee-manager said that different business entities of the trust will be managing fuel costs amid the Iran war, and have plans to rationalise non-core businesses to “optimise capital structure and boost the quality of earnings”.

This is in addition to the ongoing cost-optimisation of corporate functions.

Units of KIT ended Monday 0.9 per cent or S$0.005 higher at S$0.535 before the release of the results.