Keppel Infrastructure Trust (A7RU) Q3 2023 TU earnings summary

Executive summary

• 9M 2023 distributable income (DI) rose 93.2% YoY to $266.1m, supported by acquisitions and portfolio growth; total DPU was 5.23 cents, up 82.5% YoY.

• Announced a 2.33-cent special distribution, funded from capital optimisation proceeds generated by EBITDA growth at Ixom and City Energy.

Financial highlights

• EBITDA increased 28.1% YoY to $346.0m; adjusted EBITDA was $349.9m excluding acquisition costs, unrealised FX gains, an investment fair-value gain and a fixed-asset write-off.

• DI reached $266.1m versus $137.7m in 9M 2022; capital optimisation contributed $131.2m to 9M 2023 DI.

• Total 9M 2023 DPU was 5.23 cents, including the 2.33-cent special distribution; 3Q 2023 DPU was 0.97 cents.

Outlook and guidance

• Portfolio plans target business optimisation, bolt-on acquisitions, stronger asset utilisation and synergies; City Energy is pursuing green hydrogen, solar, EV charging and LPG growth.

• Philippine Coastal capacity expansion is on track for completion in 2H 2024; Fäbodliden II is on track for COD in 4Q 2023.

• Up to ~$825m debt headroom is available to a 45% internal net-gearing cap; the 2024 KMC funding requirement includes $45m of amortisation, to be funded internally.

• ESG targets include a 30% reduction in carbon-emissions intensity by 2030 from 2019 levels and renewable-energy exposure of up to 25% of AUM by 2030.