Keppel Infrastructure Trust swung to 3Q18 net loss amid Basslink service outage

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Keppel Infrastructure Trust said on Tuesday that it swung to a net loss after tax of S$420,000 in the third quarter, from a net profit after tax of S$6.37 million in the year-earlier period amid a hit from a service outage at Basslink, its electricity interconnector in Australia.

The trust’s profit attributable to unitholders for the quarter ended 30 September was S$8.15 million, down 47.4 percent on-year, amid a lower contribution from City Gas on a time lag in the adjustment of gas tariffs to reflect fuel costs, lower revenue from Basslink and a higher fair value loss on financial derivative instruments, the trust said.

Revenue for the quarter edged up 1.1 percent on-year to S$162.05 million, it said in a filing to SGX after the market close on Tuesday.

Total expenses for the quarter rose 7.7 percent on-year to S$164.27 million, it said.

The revenue from Basslink in the quarter fell to A$16.4 million, or around S$16.5 million, from A$19.4 million, or around S$20.8 million, in the year-earlier quarter, due to a service outage from 25 March to 5 June caused by a third-party contractor, impacting availability and resulting in lower fees during the period.

For the nine-month period, Basslink’s revenue was A$41.7 million, down from A$60.9 million in the year-earlier period, it said.

The distribution per unit for he quarter was 0.93 Singapore cent, the same as in the year-earlier period, Keppel Infrastructure Trust said, adding it will be payable on 16 November.

At the City Gas asset, revenue rose to S$88.4 million in the third quarter on higher town gas tariff on higher fuel prices, the trust said.

For the nine-month period, Keppel Infrastructure posted a net loss after tax of S$15.23 million, swinging from a year-earlier net profit of S$11.40 million, it said.

The profit attributable to unitholders for the nine-month period was S$11.61 million, down 69.5 percent on-year from S$38.01 million in the year-ago period, it said.

Revenue for the nine-month period was S$465.20 million, down 1.9 percent on-year, it said.

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