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Keppel Infrastructure Trust to report higher distribution of 1.91 cents per unit

The Edge Singapore
The Edge Singapore • 2 min read
Keppel Infrastructure Trust to report higher distribution of 1.91 cents per unit
The Keppel Marina East Desalination Plant is Singapore's fourth desalination plant / Photo: Keppel Corp
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Keppel Infrastructure Fund has reported a distribution per unit of 1.91 cents for 1HFY2022 ended June, up 2.7% y-o-y. The distribution will go ex on Aug 3 and be made on Aug 12.

KIT owns a portfolio of utilities assets. For 1HFY2022, distributable income was $87.6 million, down 13% y-o-y.

The trust manager attributes this to higher costs as well as the “under recovery” of fuel costs at City Energy, its town gas unit. There’s a time gap between costs incurred by City Energy and the adjustments it makes on tariffs charged to users.

KIT has been expanding its portfolio. It made its first investment in Europe: an onshore wind energy portfolio of three wind farms in Norway, Sweden and the UK.

In Singapore, KIT signed a non-binding term sheet with its sponsor, Keppel Infrastructure Holdings, to acquire a 50% interest in the Keppel Marina East Desalination Plant (KMEDP), and receive 100% of the economic interest from KMEDP upon the completion of the acquisition.

KMEDP is Singapore’s fourth desalination plant and has been operating since June 2020.

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Backed by a long-term contract with a strong counterparty, the acquisition of KMEDP will enhance its cash flow visibility, says KIT’s manager.

KIT closed July 27 at 58 cents, unchanged for the day, and up 5.45% year to date.

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