Keppel Infrastructure Trust swings to 1Q19 loss amid Ixom acquisition costs

Keppel Infrastructure Trust reported on Monday it swung to a first quarter loss attributable to unitholders of S$16.21 million, from a year-earlier profit of S$7.50 million.

That was mainly due to transaction costs during the quarter related to the trust’s acquisition of Ixom, KIT said in a filing to SGX after the market close on Monday.

Excluding the transaction cost, profit attributable to unitholders would be S$11.4 million higher than in the first quarter of 2018, mainly on higher contributions from City Gas and the consolidation of Ixom’s results starting from mid-February, it said.

In November, Keppel Infrastructure Trust said it entered a deal to acquire all of Ixom HoldCo, from certain Blackstone-managed funds and from certain Ixom management shareholders for A$777 million, or S$775 million.

KIT’s revenue for the quarter ended 31 March was S$318.46 million, up 98.7 percent on-year, largely on consolidating Ixom’s results, which contributed revenue of S$152.4 million, the filing on Monday said.

Total expenses more than doubled in the quarter to S$333.38 million, it said, pointing to higher fuel prices. In addition, the Ixom acquisition resulted in higher gas transportation and freight, staff, and chemicals production and distribution costs, KIT said.

The trust said it kept its distribution per unit (DPU) at 0.93 cent for the quarter, unchanged from a year earlier.

In its outlook, KIT said that after Singapore’s national water agency PUB issued a service default notice to Hyflux’s Tuaspring desalination plant, ” KIT has increased its monitoring of operational performance at SingSpring Desalination Plant to ensure that its obligations under the water purchase agreement are satisfactorily discharged.”

“There has been no impact to operations at the SingSpring Desalination Plant, KIT continues to work to ensure operational continuity,” it added.


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