Keppel Infrastructure Trust posts 1.1% dip in Q1 free cash flow to equity

KEPPEL Infrastructure Trust (KIT) saw a 1.1 per cent decrease in free cash flow to equity (FCFE) to S$44.7 million for the third quarter, despite a 6.3 per cent rise in operational cash flow.

And this came after overall trust expenses, distribution paid or payable to perpetual securities holders, management fees and financing costs increased 47.2 per cent to S$12.1 million.

Operational cash flow climbed to S$56.8 million from S$53.4 million for the three months to Sep 30, lifted by better performance from KIT's distribution and network business.

The segment recorded a 22.4 per cent increase in operational cash flow to S$28.1 million, driven by Ixom's 24.2 per cent rise in operational cash flow.

In the energy business, there was a 13.5 decrease in operational cash flow to S$10.8 million; the waste and water segment was largely stable.

KIT said in July that it will acquire the remaining 30 per cent stake it does not already own in SingSpring Desalination Plant from Hyflux for S$12 million. The trustee-manager said on Wednesday (Oct 27) that the deal is pending regulatory approval and is expected to complete in Q4.

City Gas' customer base grew 1 per cent year on year to 873,000 as at Sep 30. Residential consumption of town gas remains healthy; commercial and industrial consumption remains below pre-pandemic levels, KIT said.

Ixom, a supplier and distributor of water treatment chemicals, is enjoying healthy demand from the construction, mining, dairy and water treatment segments. KIT will continue to explore bolt-on acquisitions for growth.

KIT's net gearing decreased to 30.3 per cent as at Sep 30, 2021, from 32.1 per cent as at last Dec 31. It has issued S$600 million in perpetual securities under its S$2 billion multicurrency debt-issuance programme to refinance borrowings, and fund potential acquisitions and asset enhancement works.

Units of KIT closed on Wednesday (Oct 27) at S$0.525 unchanged.