Keeping Up With Keppel Infrastructure Trust: A 9M24 Overview
Embarking on a journey through the recent operational update of Keppel Infrastructure Trust (KIT) for the first three quarters of 2024 reveals a story of highs and lows in the financial landscape. Let’s delve into the key highlights that paint a picture of the trust’s performance and strategic moves during this period.
- Dip in Distributable Income:
- In 9M24, the distributable income (DI) of KIT experienced a 60% year-on-year decline, amounting to S$106m. However, excluding the special distribution of S$131m in the previous year, the decline narrowed to 21.3%.
- Quarterly Performance:
- The 3Q24 distributable income reported a decrease to S$15m from S$40m in 2Q24 and S$51m in 1Q24. This decline can largely be attributed to various factors such as growth capex incurred by Ixom (S$20m), reduced contribution from Singapore waste and water assets (S$9m), and debt amortization for European Wind Farm (BKR2).
- Acquisitions and Divestitures:
- Amidst the fluctuating figures, the new acquisitions of German Solar Portfolio and Ventura injected a ray of hope, contributing S$11m to the trust’s performance in 9M24. On the other hand, KIT decided to divest its entire 50% stake in Philippine Coastal Storage and Pipeline Corporation (PCSPC), expecting to complete the transaction in early 2025. This move will result in KIT receiving a cash infusion of S$192m, alongside a disposal gain of S$27.5m. However, it is projected that the annual distributable income will decrease by S$6.2m, or 1.8%, post the divestment.
In the ebbs and flows of the financial market, Keppel Infrastructure Trust navigates through challenges and triumphs, showcasing resilience and strategic acumen in adapting to the changing landscape. As we observe the trust’s journey through the ups and downs of 9M24, it serves as a testament to the dynamism and foresight needed to steer through uncertain times in the realm of infrastructure investments.
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