Keppel Infrastructure Trust (KIT) has reported a distributable income of $168.9 million for the 9MFY2025 ended Sept 30, 59.2% higher y-o-y.
The growth was due to higher contributions from City Energy, Ixom, Ventura as well as divestment gains.
Excluding the divestment gains of $49 million, KIT’s core business increased by 13% y-o-y.
Energy transition
Funds from operations for KIT’s energy transition business fell by 12% y-o-y to $153.4 million as funds from operations from its renewables portfolio comprising windfarm assets and transition assets comprising Keppel Merlimau Cogen Plant and Aramco Gas Pipelines Company) fell. They were mitigated by higher funds from operations from its German solar portfolio and City Energy.
The German solar portfolio’s funds from operations rose to $32.2 million from $30 million with its 55,000 bundled solar photovoltaic systems backed by 20-year lease contracts provided stable distribution.
Funds from operations for City Energy rose to $41.1 million from $36.4 million as the business recorded higher town gas volume and service income as well as fuel cost over-recovery.
Meanwhile, funds from operations for the renewables portfolio plunged to $26.7 million from $48.2 million even though wind speeds at BKR2 have “steadily recovered” since May. KIT’s onshore windfarm portfolio also saw higher production at the Swedish windfarms from better wind speeds although the continued low or negative power prices in Sweden has affected the business’ overall revenue.
Funds from operations for transition assets fell to $53.4 million from $59.7 million.
See also: CapitaLand India Trust reports 10% growth in total and net property income in 3Q2025
Environmental services
Funds from operations for environmental services fell by 36.5% y-o-y to $36 million as KIT’s waste and water assets in Singapore’s funds from operations fell to $39.4 million from $55.8 million due to nominal contribution from the Senoko waste-to-energy plant following the extension of the concession in 3QFY2024. KIT is also exploring extending the concession for its SingSpring Desalination Plant.
Eco Management Korea Holdings (EMK), which a KIT-led consortium acquired in 2022, reported a loss of $3.4 million from $0.9 million in the 9MFY2024. While EMK’s incineration business saw stable performance in 3QFY2025, the lower funds from operations were mainly due to lower landfill business due to KIT’s strategy in adopting pricing discipline and preserving capacity.
Distribution and storage
Funds from operations for distribution and storage grew by 29.9% y-o-y to $66.4 million as all aspects of the business — save for Philippine Coastal — saw stronger performances. Philippine Coastal, which reported funds from operations of $5.2 million from $11.6 million, was divested on March 20.
Funds from operations for Ixom grew to $49 million from $30.6 million as it saw better margins from its chemical manufacturing and distribution businesses. The higher funds from operations were driven from better ebitda.
Funds from operations for Ventura rose to $12.2 million from $8.9 million due to the full period of contribution this year; funds from operations for 9MFY2024 only included four months’ worth of contribution. Ventura was acquired in June 2024. The business’ funds from operations for 9MFY2025 would be at $31 million after adjusting for debt-funded capital expenditures (capex), which has no impact on distributable income.
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Portfolio balance sheet
As at Sept 30, KIT reported a net gearing of 38% and an interest coverage ratio of 13.1 times. Its weighted average debt maturity stood at 3.1 years while 71% of its foreign currency distributions are hedged.
As at Sept 30, 2024, KIT’s net gearing stood at 40.1% while its interest coverage ratio stood at 11.9 times. At the time, its weighted average term to maturity stood at around 4.0 years while 71.5% of its oreign currency distributions were hedged.
KIT’s portfolio assets under management (AUM) as at Sept 30 stood at $8.7 billion.
Units in KIT closed at 46 cents on Oct 27.
