Keppel Infrastructure Trust 4Q18 net profit more than doubled on Basslink contributions

Keppel Infrastructure Trust reported on Tuesday that profit attributable to unitholders more than doubled to S$20.41 million in the fourth quarter, from S$9.61 million in the year-ago period on higher contributions from Basslink.

Revenue for the quarter ended 31 December rose 8.9 percent on-year to S$172.18 million, it said in a filing to SGX after the market close on Tuesday.

For the full year, KIT reported its profit attributable to unitholders was S$32.02 million, down 32.7 percent on-year, while revenue was up 0.8 percent on-year at S$637.39 million.

The full-year profit decline was mainly due to lower contributions from City Gas on a timing lag for adjusting gas tariffs to reflect actual fuel costs and on lower revenue from Basslink on its March service outage and a higher fair value loss on derivative financial instruments, the trust said.

Basslink posted revenue of A$24.7 million in the fourth quarter, or around S$24.6 million, up from A$19.6 million in the year-ago quarter, due to the timing of an availability adjustment, it said. But for the full year, Basslink’s revenue fell to A$66.4 million, or around S$67.1 million, from A$80.5 million, or S$85.4 million, in 2017, due to a service outage from 25 March to 5 June 2018 as a result of an incident caused by a third party contractor, KIT said.

The distribution per unit (DPU) for the quarter was 0.93 Singapore cent, for a full-year DPU of 3.72 Singapore cents, it said.

In November, KIT agreed to acquire all of Ixom HoldCo, an Australia- and New Zealand-based supplier of water-treatment chemicals, which will boost the value of its portfolio to around S$5.1 billion, the filing said.

The trust’s portfolio assets in Singapore include City Gas, DataCentre One, Keppel Merlimau Cogen (KMC), Senoko Waste-to-Energy (WTE) Plant, Keppel Seghers Tuas WTE Plant, Keppel Seghers Ulu Pandan NEWater Plant and SingSpring Desalination Plant. In Australia, it holds the Basslink subsea interconnector.

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