Keppel Infrastructure Trust swung to a first half loss attributable to unitholders of S$2.95 million from a year-ago profit of S$45.18 million after a S$17 million impairment on water treatment player Ixom’s assets.
Ixom received notice a significant long-term customer will be ceasing operations within 12 months and will no longer be purchasing from Ixom, which also sells chemicals, resulting in an impairment in the company’s assets, including plant and machinery and intangible customer contracts, the trust said in a filing to SGX Wednesday.
In addition, the trust said unfavorable fair value movements in financial derivative instruments also contributed to the loss as well as S23.8 million in provisions from arbitration over Basslink.
The trust highlighted its earnings before interest, tax, depreciation and amortisation (ebitda) came in at S$193.5 million, excluding provisions, slightly below the year-earlier’s S$201.4 million, mainly on the under-recovery of fuel cost from timing differences in City Gas’s pass-through tariff.
The distribution per unit (DPU) of 1.86 Singapore cents was flat on-year, translating to a distribution yield of 6.7 percent based on KIT’s closing unit price of S$0.555 on 30 June, the trust said.
KIT’s portfolio includes infrastructure and assets providing essential products and services across distribution and network, energy and waste and water.