Keppel Infrastructure Trust reports higher DPU despite lower distributable income for H1

THE trustee-manager of Keppel Infrastructure Trust (KIT) on Wednesday (Jul 27) reported a 2.7 per cent year-on-year increase in its distribution per unit (DPU) for the half year ended June 30, despite a lower distributable income for the same period.

DPU in H1 was 1.91 cents, up from 1.86 cents in the year-ago period, KIT’s unaudited results indicated.

However, H1 distributable income was 13 per cent lower at S$87.6 million, compared with that in the first six months of 2021.

KIT’s trustee-manager said this was due mainly to “higher trust expenses, as well as the under-recovery of fuel costs at City Energy as a result of timing differences, which will be recovered through higher tariffs in future”.

The growth in DPU was supported by higher group earnings before interest, taxes, depreciation and amortisation (Ebitda), which grew 10.2 per cent year on year to S$172.6 million in H1, the trustee-manager said.

As at June 30, the trust’s net gearing stood at 31.1 per cent, compared with 32.6 per cent in end-March.

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The trustee-manager said it continues to monitor risk exposures and safeguards against evolving market conditions. It added that about 90 per cent of KIT’s total loans were hedged as at Jun 30, to mitigate against fluctuating interest rates.

It also said the trust is “largely insulated” from higher energy prices and inflation, with the cost passed through the mechanism and availability-based model.

KIT’s portfolio comprises businesses and assets in the areas of energy transition and environmental services in Singapore, as well as distribution and storage in Australia and the Philippines.

The first quarterly contribution from Aramco Gas Pipelines Company, of which KIT acquired an indirect minority and non-controlling stake in February, is expected to be reflected in Q3.

Units of KIT closed flat at S$0.58 on Wednesday.