Keppel Infrastructure Trust declares unchanged 1Q DPU of 0.93 cents; sinks to 1Q loss of $16.2 mil on Ixom acquisition

KIT saw $16.2 million in losses attributable to unitholders in 1Q19, compared to earnings of $7.5 million a year ago.

This was mainly due to transaction cost incurred during the quarter in relation to the acquisition of Ixom, which was completed on Feb 19, 2019.

1Q19 revenue jumped 98.7% to $318.5 million, from $160.3 million a year ago.

This was largely driven by the consolidation of Ixom, which contributed revenue of $152.4 million.

However, the increase in revenue was outpaced by a surge in total expenses to $333.4 million during the quarter, more than doubling from $154.6 million a year ago.

The increase in expenses was led by chemicals production and distribution costs amounting to $107.9 million in 1Q19, in relation to the consolidation of Ixom’s expenses. As such, there were no such expenses incurred a year ago.

Staff costs more than trebled to $21.0 million in 1Q19, from $6.3 million a year ago, due mainly to the consolidation of Ixom’s expenses.

In relation to the acquisition of Ixom, the trustee-manager’s fees rose to $13.3 million, from $2.6 million a year ago, while other operating expenses jumped to $42.7 million, from $11.4 million a year ago.

Gearing stood at 44.3% as at Mar 31, 2019, due mainly to the equity bridge loan drawn down to fund the acquisition of Ixom. The weighted average term to maturity (WATM) for KIT’s total loans was 2.2 years.

As at end March, cash and cash equivalents stood at $259.7 million.

Looking ahead, the trustee-manager says it is confident that KIT, backed by a portfolio of highly defensive and resilient infrastructure assets, will continue to provide stable and resilient cash flows to unitholders.

At the same time, these businesses present potential organic upside opportunities that will support KIT’s growth, it adds.

Units in Keppel Infrastructure Trust closed 2.1% higher at 48 cents on Monday.