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Keppel Infrastructure Trust Q4 DPU unchanged at 0.93 S cent, despite profit fall
KEPPEL Infrastructure Trust, which runs Singapore's town gas and natural gas utilities provider, posted a distribution per unit of 0.93 Singapore cent for the fourth quarter, unchanged from a year ago.
This was in spite of a 11.6 per cent fall in its net profit to S$7.7 million compared to the previous year, no thanks to a time lag in the adjustment of gas tariffs to reflect actual fuel cost, as well fair value losses from financial derivatives.
For the three months ended Dec 31, revenue sank 5.2 per cent to S$152.2 million from the preceding year as a result of lower town gas tariff.
Earnings per unit dipped to 0.2 Singapore cent from 0.22 Singapore cent in the previous year.
KIT is a business trust, and can pay distributions to unitholders out of its retained cash and residual cash flows, as according to its distribution policy. This contrasts with companies, which can only make dividend payments out of accounting profits.