KIT profits rise despite drop in revenue

Keppel Infrastructure Trust (KIT) lifted earnings in the first quarter despite revenue declining on the back of lower fuel costs.

Net profit for the three months to June 30 came in at $2.66 million, up 5.2 per cent on the $2.53 million in the same period a year ago, said the trustee-manager yesterday.

CitySpring Infrastructure Trust acquired Crystal Trust, formerly known as Keppel Infrastructure Trust, in May, and took on the name Keppel Infrastructure Trust.

Revenue fell 14.2 per cent to $114.4 million, largely due to lower town gas tariffs arising from lower fuel costs. It was also affected by higher negative commercial risk-sharing mechanism payments incurred by its asset Basslink, which owns and operates a 370km high-voltage interconnector between the electricity grids of Victoria and Tasmania in Australia.

But lower fuel and electricity costs helped cut expenses by 11.1 per cent to $111.7 million.

  • AT A GLANCE

  • GROSS REVENUE: $114.4 million (-14.2%)

    NET PROFIT: $2.66 million (+5.2%)

    DISTRIBUTION PER UNIT: 0.25 cent

Distribution per unit (DPU) was 0.25 cent for the period from May 29 to June 30. It had earlier paid out a separate DPU of 0.4235 cent for the period from April 1 to May 17 and another DPU of 0.11 cent for May 18 to May 28.

This adds up to a total DPU of 0.7835 cent - down from the 0.82 cent the trust distributed in the same quarter the year before.

Earnings per unit was 0.11 cent, 35.3 per cent down from a year ago, while net asset value per share stood at 36.2 cents as at June 30, more than double the 12.3 cents as at March 31. KIT units closed flat at 53.5 cents yesterday.

The trustee-manager also announced the appointment of two independent directors - Mr Mark Yeo and Mr Kunnasagaran Chinniah - which takes effect next month.

They will take over from Mr Paul Ma and Mr Alan Ow, who are stepping down from the board as part of the board's renewal process. With the appointment of Mr Yeo and Mr Chinniah, the trustee-manager will have eight directors, of whom six are independent directors.

A version of this article appeared in the print edition of The Straits Times on July 29, 2015, with the headline 'KIT profits rise despite drop in revenue'. Print Edition | Subscribe