Keppel Infrastructure Trust reports higher Q3 2022 distributable income

Benjamin Cher

Published Thu, Oct 20, 2022 · 06:36 PM

KEPPEL Infrastructure Trust (KIT : A7RU 0%) reported a 12.1 per cent increase in Q3 2022 distributable income to S$50.1 million from S$44.7 million in Q3 2021.

The increase was in tandem with a 15.4 per cent growth in operational cash flows from S$56.8 million in Q3 2021 to S$65.5 million in Q3 2022. Expenses also rose 27.5 per cent from S$12.1 million in Q3 2021 to S$15.4 million in Q3 2022.

The growth in operational cash flows was driven by all three business segments. The energy transition segment’s contribution of S$28.5 million was driven mainly by the first distribution from Aramco Gas Pipeline Company, but offset by a 7.8 per cent dip in Keppel Merlimau Cogen’s contribution.

Environmental services saw a 3.8 per cent increase to S$18.5 million due to the contractual economic benefits from the acquisition of the remaining 30 per cent of SingSpring Desalination Plant. Distribution and storage also saw a 3.9 per cent jump to S$18.5 million mainly driven by Ixom’s contributions, which was partially offset by losses incurred at Philippine Coastal.

KIT expects assets under management to increase to S$6.1 billion after completion of new acquisitions in Q4 2022. The trust is jointly investing with other Keppel companies to acquire Eco Management Korea, a waste management player in South Korea. KIT will hold a 52 per cent interest post acquisition for a consideration of about S$346.4 million.

Another acquisition on the horizon is to acquire a 50 per cent stake in Keppel Marina East Desalination Plant with an enterprise value of S$355 million. Definitive agreements are expected to be signed in Q4 2022, subject to approvals from authorities.