SINGAPORE (Oct 16): The trustee-manager of Keppel Infrastructure Trust (KIT) has declared distribution per unit (DPU) of 0.93 cent for the 3Q ended September, unchanged from a year ago.
Group revenue for 3Q17 was flat at $160.3 million, as lower revenue from the concessions, Basslink, and CityNet was offset by higher revenue from City Gas.
The concessions, comprising Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants, saw revenue fall 22.4% to $25.3 million in 3Q, from $32.6 million a year ago.
This was due to the absence of higher construction revenue recognised in 3Q16 from the Senoko boiler upgrade.
Basslink’s revenue fell 10.7% to A$19.4 million ($20.8 million) in 3Q, from A$21.7 million a year ago.
This due to a positive commercial risk sharing mechanism (CRSM) recorded in 3Q16.
Revenue from CityNet fell to $1.1 million for 9M17, from $3.1 million in the corresponding period a year ago, due to the cessation as trustee-manager of Netlink Trust with effect from Apr 13, 2017.
Revenue from City Gas grew to $81.7 million in 3Q17, due to higher town gas tariff and higher volume of town gas sold.
Meanwhile, revenue from Keppel Merlimau Cogen (KMC) was stable at $32.5 million in 3Q17.
Profit attributable to unitholders fell 8.6% to $15.5 million in 3Q17, from $17.0 million a year ago.
This was mainly due to insurance income recognised in 3Q16, partially offset by higher contributions from City Gas in 3Q17.
As at end September, cash and cash equivalents stood at $177.3 million.
Looking ahead, the trustee-manager says it will evaluate asset enhancement opportunities in its portfolio.
It adds that it will continue to identify and evaluate suitable acquisitions, including those from the sponsor, under its investment mandate to further grow the trust.
In a separate filing to SGX on Monday, the trustee-manager of KIT says it reviews its business strategies and portfolio regularly as part of its ordinary course of business to achieve the best risk-adjusted returns for its unitholders.
The announcement was in response to an article which linked Basslink to the sale of a strategic underwater cable linking Tasmania’s hydro power-dependent grid to the mainland.
See: Tasmania’s crucial underwater power cable for sale
The trustee-manager says there is no assurance that any transaction will materialise from such reviews.
Units of Keppel Infrastructure Trust closed flat at 55 cents on Monday.
