SINGAPORE (July 22): The trustee-manager of Keppel Infrastructure Trust (KIT) has announced a total distribution per unit (DPU) of 0.93 cent for the 2Q20 ended June, unchanged from the DPU reported in 2Q19.
This brings 1H20 DPU to 1.86 cents, translating to an annualised distribution yield of 6.9% based on KIT’s closing price per unit of 54 cents as at June 30.
Distributable cash flow for 2Q20 rose 35.8% y-o-y to $62.2 million. 1H20 distributable cash flow rose 20.3% y-o-y to $113.3 million.
KIT says that the “resilient performance” was supported by healthy operations across its portfolio of businesses and assets that saw minimal impact from the Covid-19 outbreak.
KIT saw a 64.4% surge in earnings of $26.2 million for 2Q20 from $16.0 million reported a year ago. KIT also posted earnings of $45.2 million for 1H20, a reversal from the loss of $0.3 million in 1H19.
Group revenue for 2Q20 fell 7.9% y-o-y to $385.1 million on lower contributions from City Gas and Ixom.
Conversely, group revenue for 1H20 rose 7.4% y-o-y to $791.3 million, largely driven by the contribution of full period revenue by Ixom, compared to the shorter period registered upon its acquisition in February 2019.
Ixom’s revenue for 2Q20 fell $10.1 million from 2Q19 to $239.1 million on lower caustic soda prices. Ixom’s revenue was also affected by the change in contracting arrangement with one of its suppliers. Its revenue from the sale of goods is now recognised on a commission basis instead of a gross sale basis previously.
City Gas registered revenue of $69.7 million 2Q20 and $148.6 million for 1H20, which was lower than corresponding period last year due to lower tariff as a result of lower fuel prices.
2Q20 expenses for KIT fell 55% y-o-y to $18.6 million, and declined 36% y-o-y to $49.7 million for 1H20 due to lower fuel prices. Other costs such as gas transportation, freight and storage costs, as well as staff costs were offset on the full period contributions from Ixom.
As at June 30, cash and cash equivalents stood at $473.1 million. KIT’s gearing level for the period stood at 33.6%.
Looking ahead, KIT says its “well-diversified and highly-defensive portfolio of businesses and assets” that are categorised under essential services, is well-positioned to weather the uncertain period due to the Covid-19 outbreak.
It will continue to monitor the situation closely, upon the gradual reopening of countries around the world.
Units in KIT closed 0.5 cent lower, or 0.9% down, at 53.5 cents on Wednesday.
