Keppel Infrastructure Trust (KIT) has reported group earnings before interest, taxes, depreciation and amortization (EBITDA) of $83.0 million for the 3QFY2020 ended September, up 7% from the $77.9 million reported a year ago.
For the nine-month period, group EBITDA surged 38% y-o-y to $283.7 million.
In its 3Q2020 operational updates dated Oct 21, KIT says the ‘resilient’ EBITDA performance was supported by ‘strong’ operational execution, improvements in productivity and prudent cost management, especially for Ixom and City Gas.
During the year, KIT faced no operational disruptions as its businesses and assets were classified as essential services and were not affected as much during the social distancing measures brought about by Covid-19.
The trust’s operational cash flows dropped 16% to $53.4 million for 3QFY2020 compared to the $63.7 million in the corresponding period the year before. The decline was mainly due to budgeted capital expenditure that was deferred from 1HFY2020 due to Covid-19.
For the nine-month period, KIT’s operational cash flows increased 7% y-o-y to $179.7 million.
During the third quarter, City Gas reported a 13% decline in its operational cash flows to $9.8 million from $11.2 million in 3QFY2019. The lower discounted cash flow (DCF) was due to a timing difference that is inherent in the fuel price pass through gas tariff mechanism despite a 0.9% y-o-y growth in its customer base. City Gas even saw continued improvement in town gas demand from commercial and industrial customers during Phase 2 of Singapore’s re-opening.
City Gas says it has no exposure to fuel price risk over time.
Similarly, Ixom’s operational cash flows plunged 39% to $13.2 million for 3QFY2020 from $21.7 million the year before due to budgeted capital expenditure deferred from 1HFY2020. However, demand from the life science and dairy segment “remains healthy” and business sentiment has improved in Australia and New Zealand.
For Basslink, the commercial risk sharing mechanism saw a 2.5% growth y-o-y in the nine-month period. Its arbitration is expected to conclude by end 2020.
Keppel Merlimau Cogen Plant saw a 16% growth in its operational cash flows to $12.5 million for 3QFY2020 from $10.8 million a year ago. The lower figure in 2019 was due to unplanned maintenance expense, says KIT.
During the quarter, the plant achieved 100% contracted availability. The plant also has no exposure to the fluctuations in fuel oil prices, and no tariff exposure to the Singapore wholesale electricity market.
KIT’s waste and water segment saw a 4% decrease in operational cash flows to $17.9 million for the quarter, from $18.6 million a year ago. Its Senoko, Tuas, Ulu Pandan NEWater and SingSpring Desalination plants fulfilled all contractual obligations and operations remained stable.
Units in KIT closed 0.5 cent higher or 0.9% up at 55.5 cents on Oct 21.