Additionally, KIT can be an off-take vehicle for Keppel’s stabilised infrastructure assets. It owns 51% of the Keppel Merlimau Cogen and 100% of the Senoko Waste-to-Energy (WTE), Keppel Seghers Tuas WTE and Keppel Seghers Ulu Pandan NEWater plants. An asset in the pipeline is the Keppel Marina East desalination plant.
During Keppel’s results briefing on Feb 1, group CFO Kevin Chng said that infrastructure is expected to be one of the fastest-growing asset classes. “We are in a strong position to build on the momentum, to capture the opportunities as an established infrastructure asset manager and operator,” he said.
A key cog in the wheel of Keppel as an asset manager and operator is one of its listed vehicles, Keppel Infrastructure Trust (SGX:A7RU
) (KIT). Chng points out that Keppel’s operating income growth of $320 million was driven by higher net generation and margins from the integrated power business as well as a special distribution from KIT. Keppel owns 18.2% of KIT and Temasek Holdings has a deemed interest of 31.9% through a stake in Keppel.
