Keppel Infrastructure Trust posts 21% decline in Q1 distributable income

THE trustee-manager of Keppel Infrastructure Trust (KIT) : A7RU 0% on Monday (Apr 18) reported a 21.1 per cent decline in distributable income for the first quarter ended Mar 31, 2022 at S$44.7 million, from S$56.6 million a year earlier.

This was due to a decline in distributable income contributed by Ixom within its distribution and storage segment by 20.7 per cent to S$19.4 million. The company provides specialised source water, water and waste water treatment solutions to supply clean water. It also supplies key water treatment chemicals, industrial and specialty chemicals.

The trustee-manager noted that Ixom expanded its product offerings with the acquisition of Bituminous Products and divested its Fiji business to focus on its core capabilities.

Expenses and distribution paid or payable to perpetual securities holders, management fees and financing costs also increased 54.6 per cent to S$15.3 million.

This was despite a 5.5 per cent increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to S$89.6 million, from S$84.9 million a year ago.

As at Mar 31, 2022, the trust’s net gearing rose to 32.6 per cent from 20.3 per cent as at Dec 31, 2021, while net debt rose to 4.1 times that of Ebitda from 2.9 times.

KIT’s units closed flat at S$0.57 on Monday before the business update was made.

KIT unitholders will also vote on a proposal to revise its fee structure at an extraordinary general meeting (EGM) scheduled for Tuesday. The trustee-manager had proposed on Mar 28 the adoption of new base fee and performance fee structures pegged to distributable income and distribution per unit (DPU) growth respectively.