But distributable cash flows were up, thanks to City Gas' performance.
Keppel Infrastructure Trust's (KIT) net profits in Q3 fell by 8.6% YoY from $17m in 2016 to $15.5m in 2017.
According to DBS Equity Research, KIT's distribution per unit (DPU) stayed at 93 cents.
Distributable cash flows went up by 4% YoY to $40.5m thanks to the improved performance from City Gas.
DBS analyst Suvro Sarkar said, "City Gas’ cash generation tends to fluctuate from quarter to quarter owing to time lag between adjustments of gas tariffs and changes in underlying fuel costs, but smoothens out over time."
He added that KIT's newest asset Data Centre One contributed higher positive cash flows, as rental rates were renewed in line with existing agreements. Basslink also generated positive funds from operations for the third successive quarter but the Trust does not use these cash flows for distribution purposes, rather for servicing loans.
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