Keppel Infrastructure Trust’s FY2025 distributions per unit (DPU) rose 1% y-o-y to 3.94 cents. Distributable income rose 24.4% y-o-y to $249.5 million, underpinned by improved operating performance from the energy transition segment and the distribution & storage segment.
The trust recorded $49.0 million in divestment gains for the year, which arose from the sale of Philippine Coastal Storage and Pipeline Corporation (PCSPC) and partial sale of interest in Ventura in 2025.
Assets under management (AUM) for the KIT portfolio was approximately $9.1 billion as at Dec 31 2025.
In FY 2025, the trustee-manager unlocked approximately $300 million in net proceeds. About $120 million of the net proceeds was redeployed to acquire a 46.7% interest in Global Marine Group, completed on Nov 25.
Within the energy transition portfolio, City Energy achieved stronger operational performance during the year with increased market share in the residential gas water heating market. Keppel Merlimau Cogent (KMC) achieved contractual availability of 100% and completed its second turbine upgrade in June 2025 to enhance the efficiency of KMC’s overall plant operations and increase operational reliability.
Aramco Gas Pipelines Company and KIT’s renewables portfolio comprising the European onshore windfarm platform, Borkum Riffgrund 2 and the German Solar Portfolio contributed positively to the DI.
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For the environmental services segment, the Singapore waste & water assets maintained stable operations and met all contractual obligations with the regulators in FY2025. The water purchase agreement for the SingSpring Desalination Plant has been extended to 2028, with its land lease due to end in early 2033.
Eco Management Korea (EMK) saw subdued cash flow in the year mainly attributable to pricing constraints in the landfill business and refinancing upfront fee. However, the Jan 1 ban on direct landfilling of municipal solid waste in the Seoul Metropolitan Area where public incineration facilities are running at full utilisation, is expected to drive higher demand for private incineration facilities.
Within the distribution & storage segment, Ixom’s performance was supported by growth in its manufactured, distribution and New Zealand business units, underpinned by the underlying expansion in mining, oil and gas and dairy customer segments. Ventura delivered 100% service reliability and on time performance exceeding 90% during the year.
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KIT’s net gearing stood at 38.7% as at Dec 31 2025, with interest coverage ratio of 7.6x. The portion of the divestment proceeds from the sale of PCSPC and interest in Ventura that is yet to be redeployed has been utilised to pare down existing borrowings.
Over 70% of total debt fixed and hedged against interest rate movements, with over 70% of foreign currency hedged against currency fluctuations.
The weighted average cost of debt (WACD), which comprises asset level non-recourse loans and trust level borrowings, was approximately 4.4% as at end December 2025.
At the trust level, the WACD remained stable at approximately 3.4%. The trustee-manager has received commitments for an early refinance of a $663 million asset level loan for Ixom and is currently evaluating refinancing options for the remaining $330 million debt at the trust level maturing later in the year.
