Keppel Infrastructure Trust (KIT) has reported a distributable income of $50.1 million for the 3QFY2022 ended Sept 30, 12.1% higher than the corresponding period the year before.
The higher y-o-y distributable income was due to y-o-y increases across KIT’s segments, Energy Transition, Environmental Services, Distribution & Storage and operational cash flows (OCFs) and dragged by a drop in KIT and Holdco.
The quarter’s distributable income brings the trust’s distributable income for the 9MFY2022 to $137.7 million, down by 5.3% y-o-y.
In its business update, KIT reported ebitda of $270.1 million for the 9MFY2022, 13% y-o-y higher than the 9MFY2021 ebitda of $239.7 million.
In Energy Transition, the group’s OCFs increased by 2% y-o-y to $65.2 million. This was due to the group receiving its first distribution from Aramco Gas Pipelines Company (AGPC) in 3QFY2022.
Within the segment, the group completed a 13.4% investment in the European Onshore Wind Platform which comprises three wind farms with 258MW capacity across Sweden and Norway.
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Its customer base for City Energy under the segment grew 1% y-o-y to 881,900 as at end-September.
KMC, also under the Energy Transition segment, achieved contracted availability of 97.7% for the 9MFY2022.
OCFs for Environmental Services grew by 4% y-o-y to $55.9 million. This was attributed mainly to contractual economic benefits accruing to KIT from the acquisition of the remaining 30% stake in the SingSpring Desalination Plant.
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Under the segment, KIT, on Oct 20, announced the signing of a memorandum of understanding (MOU) with Keppel Infrastructure to explore low carbon water solutions at the Singspring Desalination Plant and the Ulu Pandan NEWater Plant.
Under the MOUs, the parties will look at the sequestration and utilisation of carbon, in combination with the capture and utilisation of hydrogen from seawater. The pilot project will investigate the potential enhancement of electrochemical processes used in water treatment. The softened seawater can then be desalinated using less energy and chemicals.
The group also completed the acquisition of a 52% interest in Eco Management Korea Holdings in October.
In Distribution & Storage, KIT’s OCF increased by 3% y-o-y to $62.1 million for the 9MFY2022. This was attributable to the higher OCF from Ixom amid continued strong performance across the board and offset by lower OCF from Philippine Coastal due mainly to higher capex incurred on tank conversion
At the same time, industrial infrastructure business Ixom and oil and natural gas company Philippine Coastal, acquired by KIT with a 100% stake and 50% interest respectively, witnessed strong performances and positive utilisation rates.
Ixom’s acquisition of New Zealand organic and natural ingredients distributor Pure Ingredients signals its venture into the life science business as well.
Philippine Coastal’s utilisation rate was at 81.0% end-Sept, up from 78.3% as at end-June.
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As at Sept 30, KIT’s net gearing stands at a healthy level of 33.6%. KIT’s loans are hedged at approximately 90% of floating interest rates.
Further to its update, the group reported that its assets under management (AUM) are expected to experience a 30% increase to $6.1 billion for Sept 30, with the completion of new acquisitions in 4QFY2022.
Units in KIT closed flat at 52 cents on Oct 20.
