Keppel Infra Trust sees 17.3% drop in Q1 income, underlying earnings jump

Excluding divestment gains, distributable income rose 18.2%YoY to $53.7m.

Keppel Infrastructure Trust reported distributable income including divestment gains of $53.7m for the first quarter (Q1) ended 31 March, down 17.3% from $65m a year earlier.

Excluding divestment gains, including proceeds from the sale of the remaining stake in Philippine Coastal, which was completed in March 2025, distributable income rose 18.2% year on year (YoY) to $53.7m from $45.5m.

In the second quarter, divestment gains will include gains from the partial divestment of Ventura, the trust reported.

The trust said higher contributions from its energy transition portfolio, including Aramco Gas Pipelines Company, the German Solar Portfolio, and Borkum Riffgrund 2 offshore wind farm, supported performance in the quarter.

Energy transition distributable income increased 19.7% YoY to $46.5m. This included a $5.8m residual cash surplus from Aramco Gas Pipelines Company linked to a capital management exercise completed in the fourth quarter of 2025.

Environmental services distributable income rose 8.9% YoY to $7.1m, mainly driven by higher contributions from the Senoko waste-to-energy plant.

Distribution and storage distributable income fell 9.7% YoY to $21.3m, mainly due to lower contributions from

Ventura following a partial stake sale and maintenance capital expenditure funded through operating cash flow.

Digital infrastructure contributed $3m in distributable income following the acquisition of Global Marine Group in November 2025.

Net gearing rose to 41.9% as at 31 March, from 38.7% at end-December 2025, mainly due to lower cash balances. Interest coverage ratio improved to 8.6 times from 7.6 times.

The trust said it has secured funding for its FY2026 refinancing requirements, including refinancing of a $663m asset-level loan for Ixom and a $200m seven-year medium-term note issued in April.

Separately, Keppel Infrastructure Trust proposed a follow-on acquisition of additional interests in Keppel Merlimau Cogen Plant for $128.1m. It said the deal is expected to lift FY2025 pro forma funds from operations by 8% to $352m and increase pro forma distribution per unit by 6% to 4.18 Singapore cents.