Keppel Infrastructure Trust swings to 3Q19 net profit

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Keppel Infrastructure Trust reported Monday it swung to a net profit after tax of S$3.74 million for the third quarter, from a year ago loss of S$420,000, mainly on contributions from newly acquired Ixom.

Profit attributable to unitholders for the quarter ended 30 September was S$9.36 million, up 14.7 percent on-year, KIT said in a filing to SGX.

Revenue for the quarter surged to S$407.47 million from S$162.05 million in the year-ago quarter on the consolidation of Ixom earnings from mid-February, the filing said. Ixom contributed revenue of S$249.3 million for the quarter, KIT said.

City Gas contributed revenue of S$86.1 million for the quarter, down on-year, due to lower tariff and lower volume of natural gas sold, KIT said.

Basslink’s revenue for the third quarter came in at A$15.5 million, or around S$14.5 million, lower than A$16.4 million in the year-ago period, mainly on the interconnector’s low voltage cable outage from 24 August to 29 September, the filing said.

The distribution per unit (DPU) was 0.93 Singapore cent, unchanged on-year, bringing the DPU for the nine-month period to 2.79 Singapore cents, translating to a distribution yield of 7.0 percent, based on the 30 September unit closing price of S$0.53 a unit, KIT said.

For the nine-month period ended 30 September, KIT reported a net loss after tax of S$12.72 million, narrower than a loss of S$15.23 million in the year-ago period, on revenue of S$1.14 billion, up from S$465.20 million in the year-ago period.

In its outlook, KIT said Basslink was “vigorously defending itself” in arbitration over the December 2015 outage of the Basslink interconnector due to a cable failure.

Basslink maintains the incident was a force majeure event and “strongly denies” allegations from the State of Tasmania and Hydro Tasmania over the cause, KIT said.

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