It blamed lower contribution from City Gas and lower revenue at Basslink.
Keppel Infrastructure Trust’s (KIT) net profit in Q3 fell 47.4% to $8.15m from $15.50m last year, whilst revenue increased 1.1% to $1.62m from $1.60m.
The decline in profits was largely attributed to lower contributions from City Gas as a result of gas tariff adjustments and consequent higher fuel prices, according to its financial statement. It also blamed lower revenue from Basslink which saw revenue slip from $20.8m last year to $16.5m in Q3 due to a power outage by a third party contractor from 25 March to 5 June.
“KIT’s assets typically generate stable cash flows, with repairs and maintenance of the plants provided for as scheduled outages,” the financial statement noted. “However, if such an outage lasts longer than anticipated and causes the availabilities of the plants to fall below their respective contracted levels, the plants will not be able to receive full payments due under their contracts.”
The fund’s four concessions which comprises of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants contributed revenue of $24.0m in Q3. It was marginally lower compared to last year’s $25.3m due to lower dispatch at the water plants.
KIT’s distribution per unit (DPU) was reported at 0.93 cents in Q3 and the fund is currently trading at a yield of around 7.5%.
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