Keppel Infrastructure Trust (A7RU) Q1 2023 TU earnings summary

Executive summary

• Q1 2023 distributable income rose 65.5% YoY to $73.9m, supported by portfolio growth, stronger City Energy and Ixom contributions, and acquisitions completed in FY 2022.

• FY 2022 acquisitions and investments contributed $36.4m, or 38.5% of Q1 distributable income.

Financial highlights

• Distributable income was $73.930m vs $44.675m in Q1 2022; asset subtotal increased 57.5% to $94.515m.

• EBITDA was reported at $125.9m, up 40.5%; the figure excludes a $1.6m one-off acquisition-related cost and $1.4m unrealised FX gains, while adjusted EBITDA without those adjustments was $125.7m.

• Corporate costs rose 34.1% YoY to $20.585m, reflecting higher costs from the Series 4 notes issuance and equity bridge loans used to fund EMK and BKR2 acquisitions.

Outlook and guidance

• Ixom’s strategic review may be revisited when markets improve; plans include core-business M&A, improving new acquisitions, streamlining operations and exploring debt recapitalisation.

• The European Onshore Wind Platform expects its first dropdown asset in 2H 2023.

• KMC’s full-year computed distributable income is expected to be significantly offset by mandatory debt repayment in Jun 2023; its capital structure, including a $700m sustainability-linked loan, is under review.

• Philippine Coastal is building new Subic Bay tanks to meet additional anchor-tenant storage demand; EMK is exploring accretive bolt-on opportunities.