Keppel Infrastructure Trust (KIT) has reported distributable income of $44.7 million for the 1QFY2022 ended March, down 21.1% from distributable income of $56.6 million in the same period the year before.
Distributable income for energy transition fell 3.5% y-o-y to $21.3 million, while distributable income for environmental services fell 4.6% y-o-y to $17.4 million. Distributable income for distribution & storage plunged 18.7% y-o-y to $21.4 million.
Total EBITDA for the 1QFY2022 stood at $89.6 million, up 5.5% y-o-y. The increase was supported by the strong performance from Ixom, says the trust in its business update on April 18.
The figure excludes the EBITDA contribution from Basslink, Ixom’s divestment of its Fiji business, as well as the one-off acquisition-related cost incurred for the investment in Aramco Gas Pipelines Company.
Total operational cash flows (OCF) fell 9.8% y-o-y to $60.0 million, due to a decline in OCF across all three of KIT’s pillars.
According to KIT, the first quarter has seen a steady portfolio performance that was due to the “robust” operations and growth across its portfolio of essential businesses and assets. This includes the expanded offerings from Ixom and the driving of new growth engines from City Energy.
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Under energy transition, the trust saw OCF decline 4% y-o-y to $21.2 million from $22.0 million in the same period the year before. This was due largely to the higher upfront and installation capital expenditure (capex) costs incurred as City Energy increases its customer base.
As at end-March, City Energy reported a slight increase in its customer base of 879,000, up 1% y-o-y.
Keppel Merlimau Cogen Plant (KMC) achieved 99.99% contracted availability during the 1QFY2022 as well.
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Environmental services also saw OCF decline 5% y-o-y to $17.4 million from $18.2 million previously, due to the higher electricity costs at the Keppel Seghers Ulu Pandan NEWater Plant and higher tax paid at the SingSpring Desalination Plant.
In its update, KIT revealed that the remaining 30% stake in the SingSpring desalination plant is pending lenders’ and regulatory approvals and is expected to be completed in 1HFY2022.
Finally, distribution & storage’s OCF declined 19% y-o-y to $21.4 million to $26.3 million, mainly due to the timing differences in Ixom’s actual tax paid.
Ixom has so far seen healthy demand from the construction, mining, dairy, as well as the water treatment segments. It has also increased its exposure to the construction segment with the acquisition of Bituminous Products, one of Australia’s leading manufacturers and suppliers of bitumen-based and associated products for road surfacing and general industrial use.
The utilisation rate for Philippine Coastal stood at 77.3% as at end-March, up from 72.1% as at end-December.
As at end-March, KIT has a total of $4.5 billion in businesses and assets, with 37% in energy transition, 8% in environmental services and 35% in distribution & storage.
As at March 31, the trust reported $430 million in cash and net debt of $1.47 billion.
Units in KIT closed flat at 57 cents on April 18.
