Keppel Infrastructure Trust's DPU at 0.93 cents in Q2

Most of its business segments posted stable performances.

Keppel Infrastructure Trust (KIT) has declared a distribution per unit (DPU) of 0.93 cents for Q2, an SGX filing revealed. This brings the total DPU for H1 to 1.86 cents, which translates to an annualised distribution yield of 6.9% as at 30 June.

Distributable cash flow (DCF) jumped 35.8% YoY to $62.2m in Q2 and surged 20.3% YoY to $113.3m in H1. KIT’s gearing level as at 30 June hit 33.6%, which is said to provide the trust with a comfortable debt headroom to pursue growth opportunities.

Close to 81% of KIT’s total loans have been hedged as at end-June, excluding the sustainability-linked loan for Keppel Merlimau Cogen plant.

Ixom is said to have delivered a healthy and sustained performance in Q2, supported by its well-diversified business and large customer base. During the quarter, Ixom saw stronger
performance from its life science segment due to increased demand for cleaning and hygiene products, which offset weaker demand from the pulp & paper and metals & mining segments.

The dairy segment also saw a pick-up in volumes due to the improving drought conditions in New Zealand.

On the other hand, City Gas continued to experience reduced town gas supply to its commercial and industrial (C&I) customers due mainly to the circuit breaker in Singapore between 7 April and 1 June. The reduced volume was partially offset by higher usage from residential customers.

“In the short run, City Gas’s financial performance can result in over- and under-recovery of the fuel component due to a timing lag in the adjustment to the gas tariffs in response to changes in underlying fuel cost,” KIT said.

In the Energy segment, KMC contractual availability during the quarter was 97.9%. In the Waste & Water segment, operations at the Senoko Waste-to-Energy (WTE), Keppel Seghers Tuas WTE, Keppel Seghers Ulu Pandan NEWater and SingSpring Desalination plants remained stable, and met all their contractual performance requirements in Q2.

Looking ahead, KIT remains confident that they are well-positioned to weather this unprecedented period of uncertainty and continue to deliver long-term sustainable distributions and returns to unitholders.