NEWS

By Kelly Ng

Image by Keppel Infrastructure Trust website

KEPPEL Infrastructure Trust (KIT) saw a 15.6 per cent increase in operational cash flow in the first quarter, buoyed by strong year-on-year performance of infrastructure asset Ixom, as well as the trust’s acquisition of Philippine Coastal Storage & Pipeline Corporation.

Operational cash flows stood at S$66.5 million for the first three months of the year, up from S$57.5 million in the same period last year, KIT said in an update on Monday.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) recorded a 0.2 per cent dip to 97.9 million in Q1 2021, down from 98.1 million in Q1 2020.

Ixom, an industrial infrastructure business in Australia and New Zealand, saw strong year-on-year performance, driven by healthy demand from the construction, mining, dairy segments and higher demand for chlorine and caustic soda, KIT said. Ixom’s operational cash flows also benefited from a strong Australian dollar.

In January 2021, KIT completed the acquisition of Philippine Coastal – one of the largest petroleum products import storage facility in the Philippines – a move that KIT’s trustee-manager deems will drive “long-term sustainable returns”.

Following the acquisition, KIT entered into a share-sale agreement with its Philippine partner Metro Pacific Investments Corporation (MPIC), to sell 30 per cent of the trust’s interest in Philippine Coastal to MPIC.

This results in each of the partners indirectly holding an approximately equal percentage of interest in Philippine Coastal, and KIT indirectly holding one more voting share.

Fuel storage demand is expected to steadily increase as the Philippine economy recovers from the pandemic.

Units of KIT closed S$0.54 on Monday, down S$0.01 or 1.8 per cent.

Source: The Business Times