Keppel Infrastructure Trust - DBS Research 2023-04-17: Inorganic Push Yielding Positive Results

Keppel Infrastructure Trust - Inorganic Push Yielding Positive Results

  • Keppel Infrastructure Trust (SGX:A7RU) recorded a distributable income of S$73.9m in 1Q23, up 66% y-o-y but down 13% q-o-q, as core EBITDA (excluding one-offs) grew 40% to S$125.9m.
    • The big y-o-y jump was driven by new acquisitions completed in FY22 – Aramco Gas Pipelines (AGPC), the wind farm assets in Europe, and waste management player EMK in South Korea, which together contributed S$36.4m or 38.5% of distributable income in 1Q23.
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  • The KMC debt will start amortising in FY23 and continue till FY27, unless refinanced with different structure. In the near term, this will not impact DPU as the new acquisitions will offset the loss of KMC contribution. However, this will constrain Keppel Infrastructure Trust’s ability to grow DPU in FY23.
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  • Among Keppel Infrastructure Trust's newly inducted assets, BKR2 offshore wind portfolio contributions were higher than expected, owing to some timing impacts. Hence, subsequent quarter contributions should be lower.
  • The distributable income leaves a comfortable buffer of S$48m or so that Keppel Infrastructure Trust needs to generate quarterly in order to meet DPU targets. However, this is before any additional equity fund raising (EFR).
  • Management expects to grow Keppel Infrastructure Trust's DPU by at least 1.5-2% every year, beating long term inflation trends in Singapore.

Strategic review of Ixom put off for now

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Suvro SARKAR DBS Group Research | 2023-04-17

Previous report by DBS:
2022-07-29 Keppel Infrastructure Trust - Stronger Portfolio Growth Pipeline.

Price targets by other brokers at Keppel Infra Trust Target Prices.

Listing of research reports at Keppel Infra Trust Analyst Reports.

Relevant links:
Keppel Infra Trust Share Price History,
Keppel Infra Trust Announcements,
Keppel Infra Trust Dividends & Corporate Actions,
Keppel Infra Trust News Articles


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