Keppel Infrastructure Trust (A7RU) H1 2023 earnings summary

Executive summary

• 1H 2023 Distributable Income rose 51.8% YoY to S$132.9m; DPU increased 1% to 1.93 cents.

• FY 2022 acquisitions contributed S$68.6m, or 38.5% of Asset Distributable Income; portfolio operations remained steady.

• Revenue rose 12.4% to S$1,063.6m, with higher contributions from City Energy, Ixom, AGPC and acquisitions.

Financial highlights

• Distributable Income was S$132.891m, up 51.8%; Asset Distributable Income rose 51.1% to S$178.110m, while corporate costs increased 49.4% to S$45.219m.

• Revenue increased 12.4% to S$1,063.6m; EBITDA rose 42.8% to S$246.3m.

• Profit before tax was S$48.0m versus S$18.7m; profit for the period was S$31.9m versus S$4.3m, and basic and diluted EPS was 0.76 cents versus 0.09 cents.

• Profit attributable to unitholders was S$39.4m, up S$35.0m YoY, reflecting stronger business contributions and lower trustee-manager fees.

• Total comprehensive income fell to S$5.8m from S$69.0m, mainly reflecting cash-flow hedge and foreign-currency translation movements.

Outlook and guidance

• Lower Senoko WTE availability fees are expected to be recovered from the operator in 2H 2023; discussions continue on extending Senoko WTE and Singspring concessions.

• Fäbodliden II was expected to commence commercial operations in 4Q 2023; the European wind platform had 1.2 GW of pipeline opportunities in Sweden and the UK.

• Philippine Coastal began a planned Subic Bay expansion; additional anchor-customer storage volume commenced in July 2023.

• Scheduled KMC loan amortisation and July BKR2 bond amortisation are expected to constrain 2H and FY2023 distributable income.

• Ixom's growth priorities include core-business M&A, acquisition performance, streamlining and potential debt recapitalisation; Philippine Coastal expects utilisation to recover in 2H.