Singapore-based Keppel Infrastructure Trust (KIT) saw a 21% decline in its Q1 2022 distributable income at S$44.7mn ($32.8mn) vs. S$56.6mn ($41.47mn) last year. This was due to a 20.7% dip in distributable income of Ixom’s distribution and storage segment. In Q1 Ixom expanded product offerings with the acquisition of Bituminous Products and divested the Fiji business to focus on core capabilities. Trust expenses and distribution paid or payable to its perp holders, management fees and financing costs rose 55% to S$15.3mn ($11.2mn). EBITDA rose 5.5% to S$89.6mn ($65.7mn) in Q1. Its net gearing rose to 32.6% from 20.3% in the prior quarter with net debt at 4.1x EBITDA. In Q1, KIT proposed amendments to its fee structure to support growth and promote alignment of interests with unitholders. Besides, KIT also completed an investment in Aramco Gas Pipelines Company in February 2022. During Q1, KIT obtained a S$150mn ($109.91mn) equity bridge loan to fund its investment as part of a global consortium taking a 49% stake in Aramco Gas Pipelines Company. KIT also noted that ~82% of loans are hedged. The trust’s weighted average interest rate is at 2.1% and weighted average term to maturity is at 3.1 years.
KIT’s dollar bonds were trading flat, with its 3% 2026 at 95.99 yielding 3.96%.
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