Keppel Infrastructure Trust posts 2H21 loss widened on Basslink, higher fuel prices

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Keppel Infrastructure Trust reported Wednesday its loss attributable to equity holders for the second half widened to S$112.17 million from a loss of S$72.45 million in the year-ago period, mainly on the derecognition of Basslink, which is in voluntary administration

The trust posted a loss on derecognition of Basslink of S$161.9 million, and a S$19.2 million impairment on Ixom after a significant long-term customer said it will cease operations within a year and will no longer be purchasing from the company.

In addition, the trust said fuel and electricity costs for the six-month period climbed 44 percent on-year to S$74.53 million as energy prices rose, and staff costs increased around 23 percent on-year to S$91.53 million, partly due to a stronger Australian dollar. 

Revenue for the six months ended 31 December rose 11.5 percent on-year to around S$837 million on higher contributions from Ixom and City Energy, the trust reported. 

The distribution per unit (DPU) for the second half came in at 1.92 Singapore cents, compared with 1.86 Singapore cents in the year-ago period, the trust reported. 

Ixom posted a record year on contributions from manufacturedd chemicals, construction, mining, dairy and water treatment, KIT said. In addition, Ixom acquired SCR Solutions, which makes AdBlue, an additive to diesel in trucks to reduce harmful emissions, the filing noted.

For the first half, Ixom reported a profit before tax of S$29.50 million on revenue of S$559.69 million, compared with second half 2020 revenue of S$493.90 million and a profit before tax of S$12.19 million. 

For the full year, KIT reported a loss attribuable to equity holders of S$107.28 million, wider than the S$20.16 million loss in 2020. Revneue for the full year was S$1.58 billion, up 5.1 percent on-year, KIT said.

The full year DPU came in at 3.78 Singapore cents, up from the 3.72 Singapore cents paid since 2016, boosted by a “strong and stable performance” at the Ixom asset KIT said.

KIT holds infrastructure assets across the distribution and network, energy and waste and water segments.

As of end-2021, Keppel Infrastructure Trust’s portfolio in included a 50 percent interest in Philippine Coastal Storage & Pipeline, a 100 percent interest in Australia’s Ixom, and in Singapore, 100 percent of City Energy, 51 percent of City-OG Gas, 51 percent of Keppel Maerlimau Cogen, 70 percent of the SingSpring Desalination Plant, and all of Senoko Waste-to-Energy WTE Plant, Keppel Seghers Tuas WTE Plant, and Keppel Seghers Ulu Pandan NEWater Plant. 

Read more about Keppel Infrastructure Trust’s results and assets.