Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — FY2019 Earnings Presentation
29 slides from Keppel Infrastructure Trust's earnings presentation, Jan 20, 2020
Slide 1: Fourth Quarter and Full Year 2019 Financial Results
Fourth Quarter and Full Year 2019 Financial Results 20 January 2020
Slide 2: Important Notice
Important Notice The information contained in this presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue or any solicitation of any offer or invitation to purchase or subscribe for any units (“U
Slide 3: Outline
Outline ◼ Key Results Highlights 4 ◼ Business Updates 6 ◼ Finance & Capital Management 11 ◼ Looking Ahead 16 ◼ Additional Information 18 3
Slide 4: Key Results Highlights
Key Results Highlights Ixom
Slide 5: FY 2019 Key Results Highlights
FY 2019 Key Results Highlights Distribution per Unit Distributable Cash Flows Annualised Yield Gearing 3.72 cents $188.7m 6.9% 32.8% 4Q 2019 DPU of 0.93 cents, 33.7% YoY increase Distribution yield based on the Comfortable debt headroom to bringing FY 2019 DPU to 3.72 cents from FY 2018 market price
Slide 6: Business Updates
Business Updates Ulu Pandan NEWater Plant
Slide 7: Business Sectors
Business Sectors Diversified Business Trust with a Strategic Portfolio of Infrastructure-Like Businesses and Assets Distribution & Network Energy Waste & Water Strategic infrastructure businesses and Stable and resilient infrastructure assets anchored by concession contracts assets with potential fo
Slide 8: Portfolio Summary
Portfolio Summary 1 8 SingSpring City Gas SINGAPORE AUSTRALIA & NEW ZEALAND Desalination Plant ▪ Sole supplier of town gas in Singapore 5 1 3 ▪ 1 of 3 Desalination plants in ▪ Customer base of more than 859,000 Singapore residential, commercial and industrial ▪ Responsible for meeting the water cust
Slide 9: Portfolio Breakdown
Portfolio Breakdown By Businesses and Assets (%) By Geography (%) As at 31 December 2019 As at 31 December 2019 11.8 20.5 17.0 9.9 $5.0 billion 41.9 $5.0 billion 58.1 15.9 24.9 City Gas Basslink Ixom KMC Singapore Australia and New Zealand Waste & Water Non-controlling interest 9
Slide 10: Key Business Highlights
Key Business Highlights Distribution and Network Energy Waste & Water Senoko and Tuas WTE Plants, Businesses City Gas, Basslink, Ixom Keppel Merlimau Cogen (KMC) Ulu Pandan and SingSpring & Assets Water Plants City Gas • Contracted availability of 96.0% • Fulfilled all contractual obligations • Cust
Slide 11: Finance & Capital Management
Finance & Capital Management City Gas
Slide 12: Distributable Cash Flows
Distributable Cash Flows +/(-) +/(-) (S$’000) 4Q 2019 4Q 2018 FY 2019 FY 2018 % % Distribution & Network • City Gas 8,486 7,606 11.6 45,982 35,257 30.4 • DC One1 697 1,379 (49.5) 4,678 5,211 (10.2) • Ixom2 11,564 - > 100.0 49,281 - > 100.0 Energy • KMC 7,947 11,538 (31.1) 41,699 45,141 (7.6) Waste &
Slide 13: Regular and Stable Distributions
Regular and Stable Distributions Comparative Yields1 8.0% 6.9% 6.0% 4.4% 4.0% 4.0% 1.6% 1.7% 2.0% 0.0% 5 Yr SG Govt 10 Yr SG Govt STI FTSE ST REIT KIT bond bond Index DPU for 4Q 2019 DPU: 0.93 Singapore cents ▪ Book closure date: 29 January 2020 ▪ Payment date: 14 February 2020 1. Sources: Bloomberg
Slide 14: Balance Sheet
Balance Sheet Sustainable gearing supported by: ◼ Long term concession contracts expiring As at 31 December 2019 (S$’m) between 2024 and 2036 Total Excl. Basslink ◼ Creditworthy off-takers backed by Cash 470 440 government and government-linked corporations Borrowings 2,112 1,501 Net debt 1,642 1,06
Slide 15: Capital Management
Capital management overview: ◼ Hedged ~ 89% of total loans Capital Management ◼ All loans are non-recourse except KIT corporate loan Debt Repayment Debt Breakdown by ◼ Stable interest rate of 4-5% Profile Currency − Singapore average: 2-4% − Australia average: 4-7% ◼ Weighted average term to maturit
Slide 16: Looking Ahead
Looking Ahead Ixom
Slide 17: Driving Sustainable Growth
Driving Sustainable Growth KIT’s long-term strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distributions and steady capital appreciation Anchored By a growing portfolio of strategic infrastructure businesses and assets across a broad range of h
Slide 18: Additional Information
Additional Information Senoko WTE Plant
Slide 19: 4Q 2019: Distributable Cash Flows
4Q 2019: Distributable Cash Flows S$'000 City Gas Basslink Ixom KMC Waste & Water Others Group 3 5 Profit/(loss) attributable to unitholders 2,662 5,618 (25,041) (11,280) (199) 57,713 29,473 Add/(less): Reduction in concession / lease receivables (184) - - - 13,393 - 13,209 Non-cash finance cost 24
Slide 20: 4Q 2018: Distributable Cash Flows
4Q 2018: Distributable Cash Flows S$'000 City Gas Basslink KMC Waste & Water Others Group Profit/(loss) attributable to unitholders 1,942 8,771 (8,463) (1,720) 19,883 20,413 Add/(less): Reduction in concession / lease receivables - - - 13,038 - 13,038 Non-cash finance cost 101 109 83 4 27 324 Other
Slide 21: FY 2019: Distributable Cash Flows
FY 2019: Distributable Cash Flows S$'000 City Gas Basslink Ixom KMC Waste & Water Others Group 3 5 Profit/(loss) attributable to unitholders 17,458 (8,989) (19,023) (41,425) (238) 90,795 38,578 Add/(less): Reduction in concession / lease receivables (460) - - - 53,407 - 52,947 Non-cash finance cost
Slide 22: FY 2018: Distributable Cash Flows
FY 2018: Distributable Cash Flows S$'000 City Gas Basslink KMC Waste & Water Others Group Profit/(loss) attributable to unitholders 9,556 (15,886) (38,586) (666) 77,605 32,023 Add/(less): Reduction in concession / lease receivables - - - 52,046 - 52,046 Non-cash finance cost 397 5,012 331 15 111 5,8
Slide 23: FY2019 Results: City Gas
FY2019 Results: City Gas FY19 FY18 Change S$'000 S$'000 % Revenue 1 343,189 347,629 (1.3) Other income 2,323 2,030 14.4 Other (losses)/ gains - net (401) (420) (4.5) Expenses Fuel and electricity costs (129,577) (144,846) (10.5) Gas transportation costs (94,905) (93,873) 1.1 2 Depreciation and amort
Slide 24: FY2019 Results: Basslink
FY2019 Results: Basslink FY19 FY18 Change 1 1 A$'000 A$'000 % Revenue1 86,555 66,426 30.3 Other income 1,029 6,073 (83.1) 2 Other losses - net (5,626) (13,207) (57.4) Expenses Fuel and electricity costs (396) (317) 24.9 2 Depreciation and amortisation (17,768) (17,775) (0.0) Staff costs (3,538) (2,8
Slide 25: FY2019 Results: Ixom
FY2019 Results: Ixom Period Ending 31 December 2019 1 A$'000 Revenue 963,657 Other income 2,056 Other gains (959) Expenses Fuel and electricity costs (2,395) Freight costs (63,917) Staff costs (112,374) Depreciation and amortisation (71,729) Operation and maintenance costs (11,136) Chemicals product
Slide 26: FY2019 Results: KMC
FY2019 Results: KMC FY19 FY18 Change S$'000 S$'000 % 1 Revenue 125,816 129,121 (2.6) Other income 161 40 >100.0 Other gains 101 138 (26.8) Expenses Depreciation and amortisation (76,948) (75,699) 1.6 2 Operation and maintenance costs (21,207) (18,535) 14.4 3 Finance costs (109,063) (107,764) 1.2 4 O
Slide 27: FY2019 Results: Waste and water
FY2019 Results: Waste and water FY19 FY18 Change S$'000 S$'000 % 1 Revenue 100,323 93,514 7.3 Other income 1,144 717 59.6 Expenses Fuel and electricity costs1 (17,012) (10,435) 63.0 Depreciation and amortisation (7,149) (7,055) 1.3 Operation and maintenance costs (47,449) (45,522) 4.2 Finance costs
Slide 28: Energy Distribution & Network
Portfolio Overview Description Customer and contract terms Primary source of cash flows Energy Distribution & Network Fixed margin per unit of gas sold, with Over 850,000 commercial and residential Sole producer and retailer of piped town gas fuel and electricity costs passed through customers to co
Slide 29: Thank You
Thank You www.kepinfratrust.com Ulu Pandan NEWater Plant
Keppel Infrastructure Trust — FY2019 Earnings Presentation on 6ix