Keppel Infrastructure Trust (KIT) has reported a distribution per unit (DPU) of 1.95 cents for the 1HFY2024, 1.0% higher y-o-y. Based on KIT’s closing price of 47 cents as at June 28, the DPU translates to an annualised yield of 8.3%.
Distributable income, however, fell by 31.5% y-o-y to $91.0 million due to one-off costs and timing differences. The amount is underpinned by steady operational performance, and includes the resumption of contributions from Keppel Merlimau Cogen (KMC) plant and contributions from new acquisitions completed in the 1HFY2024.
Excluding the one-offs and the rest being equal, adjusted distributable income for the 1HFY2024 would have been 2.1% higher y-o-y at $117.8 million. The adjustments were made for performance fees, growth capital expenditure (capex) and upfront financing fees, which cost KIT $13 million, $8.9 million and $6.5 million respectively.
Asset subtotal for the period fell by 15.1% to $151.2 million with all three segments posting y-o-y declines. Energy transition fell by 14.4% y-o-y to $83.7 million, while environmental services fell by 3.2% y-o-y to $37.6 million. Distribution & storage fell by 27.9% y-o-y to $30.0 million.
Revenue for the 1HFY2024 fell by 5.8% y-o-y to $1.0 billion mainly due to lower revenue from Ixom and distribution income from Aramco Gas Pipelines Company (AGPC). This was partly offset with the contribution of revenue from Ventura, which was acquired on June 3.
The lower revenue from Ixom was mainly due to lower commodity pricing and weaker Australian dollar (AUD) exchange rates. Ixom’s revenue is denominated in AUD.
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The energy transition segment reported y-o-y growth in revenue, offset by the declines in revenues for the environmental services and distribution and storage segments.
Overall, KIT reported a loss of $23.9 million attributed to unitholders of the trust, down from its earnings of $39.4 million in the 1HFY2023.
As at June 30, KIT’s assets under management (AUM) grew to $8.8 billion, 8% higher than the $8.1 billion as at Jan 2.
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“With environmental, social and governance (ESG) at the core of its business and strategy, the trustee-manager will continue to actively manage the trust’s portfolio and create value to achieve sustainable growth,” says KIT’s manager in its July 26 statement.
Unitholders will receive their DPUs on Aug 13.
Units in KIT closed 0.5 cents higher or 1.06% up at 47.5 cents on July 26.
