Keppel Infrastructure Trust posts 29.1% lower Q1 distributable income
The manager highlights new contributions from the German solar portfolio and resumed contributions from the Keppel Merlimau Cogen Plant
KEPPEL Infrastructure Trust’s (KIT) distributable income for the first quarter ended Mar 31 fell 29.1 per cent to S$50.9 million, from S$71.8 million a year ago.
This was due to lower contribution from its distribution and storage sector and higher corporate expenses, based on KIT’s Q1 business update on Friday (May 3).
Distributable income from the distribution and storage sector was down 32.8 per cent to S$15.8 million. Contribution from Ixom, KIT’s infrastructure business in Australia and New Zealand, was down 28.4 per cent to S$15.1 million on higher finance, capital and operating expenses.
Meanwhile, contribution from petroleum products import storage facility Philippine Coastal declined 70.7 per cent to S$721,000, due to growth capital expenditure and one-off financing costs amounting to S$3.3 million.
Corporate expenses, comprising trust expenses and distributions payable to perpetual securities holders, management fees and financing costs, rose 72.8 per cent to S$35.6 million.
The trust manager noted that Q1 distributable income will increase 29 per cent on the year to S$66.8 million, after adjusting for one-off costs.
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Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter dropped 5.6 per cent to S$118.8 million, compared with S$125.9 million in the corresponding year-ago period.
Adjusted Ebitda, excluding one-off acquisition-related costs, unrealised exchange gains and performance fees related to FY2023’s increase in distribution per unit (DPU), stood at S$130.7 million, up 3.8 per cent year on year.
Q1 transactions delivered more than 16 per cent DPU accretion on a pro forma basis, assuming that all distributable income generated will be distributed to KIT and minority shareholders, said the trust manager.
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The manager also highlighted new contributions from the German solar portfolio, which generated S$12.4 million in distributable income, and resumed contributions from the Keppel Merlimau Cogen Plant, which stood at S$10.2 million.
These helped to push the energy transition sector’s distributable income up 2.1 per cent to S$49.7 million, despite a 92.3 per cent lower contribution from its renewables portfolio.
As at Mar 31, KIT’s net gearing stood at 41.1 per cent, with interest coverage ratio at 13.8 times. About 82 per cent of its debt was hedged or pegged to fixed rates.
Units of KIT closed Friday down 1.1 per cent or S$0.005 to S$0.465.
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