Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Q3 2018 Earnings Presentation
22 slides from Keppel Infrastructure Trust's earnings presentation, Oct 16, 2018
Slide 1: Third Quarter & Nine Months 2018 Financial Results
Third Quarter & Nine Months 2018 Financial Results 16 October 2018
Slide 2: Important Notice
Not for distribution in the United States 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
Slide 3: Outline
Outline Key Highlights Business Updates Finance and Capital Management Looking Ahead 2
Slide 4: Key Highlights
Keppel Merlimau Cogen Key Highlights 3
Slide 5: Key Highlights for 3Q 2018
Key Highlights for 3Q 2018 Distribution per Unit Distributable Cash Flows 0.93 cents S$34.6 million Stable DPU of 0.93 cents for 3Q 2018 Stable distributable cash flows of S$34.6 million bringing total DPU to 2.79 cents for 9M 2018 for 3Q 2018 and S$107.0 million for 9M 2018 Gearing Distribution Yie
Slide 6: Business Updates
SingSpring Desalination Plant Business Updates 5
Slide 7: Business Updates
Business Updates Portfolio of highly strategic and core assets Sectors Energy Distribution & Network Water & Waste Asset (1) % Total 28% 53% 19% KMC City Gas; Basslink; DataCentre One Senoko and Tuas WTE Plants Ulu Pandan and SingSpring Water Plants ▪ Fulfilled ▪ City Gas ▪ Fulfilled all contractual
Slide 8: Finance & Capital Management
Senoko WTE Plant Finance & Capital Management 7
Slide 9: Distributable Cash Flows
Distributable Cash Flows +/(-) +/(-) ($’000) 3Q 2018 3Q 2017 9M 2018 9M 2017 % % Energy • KMC 11,766 11,301 4.1 33,603 33,948 (1.0) Distribution & Network • City Gas 6,942 13,889 (50.0) 27,651 34,415 (19.7) • DC One 1,353 1,175 15.1 3,832 2,707 41.6 Water & Waste 17,918 17,761 0.9 53,268 52,919 0.7
Slide 10: Regular and Stable Returns
Regular and Stable Returns Comparative Yields^ 8.0% 7.52% 6.0% 5.50% 4.29% 4.0% 2.23% 2.49% 2.0% 0.0% 5 Yr SG 10 Yr SG STI FTSE ST KIT Govt bond Govt bond REIT Index DPU (S cents) 3Q FY18 DPU: 0.93 Singapore cents ▪ Book closure date: 24 October 2018 ▪ Payment date: 16 November 2018 ^Sources: Bloomb
Slide 11: Balance Sheet
Balance Sheet Sustainable gearing supported by: ($’m) As at 30 Sept 2018 Long term contracts expiring Excl. Total between 2024 and 2046 Basslink Cash 226 180 Creditworthy customers and City Borrowings 1,762 1,075 Gas’ large and stable customer base Net debt 1,536 896 Recurring and stable reven
Slide 12: Capital Management
Capital Management Hedged ~91% of total loans Debt Repayment Debt Breakdown by Profile Currency All loans non-recourse except KIT corporate loan >5 < 1 yr yrs 19.0 Stable interest rate of 4-5%. 0.5% % A$ 39% Singapore average: 3-4% Australian average: 6-7% 1-5 yrs S$ Weighted average ter
Slide 13: Looking Ahead
Ulu Pandan NEWater Plant Looking Ahead 12
Slide 14: Three-pronged Growth Strategy
Three-pronged Growth Strategy Provide long-term, regular and predictable distributions 1 Organic Growth from Existing Portfolio 2 Keppel Synergy 3 Acquisition Strategy KIT New Investments Keppel Capital Businesses / Assets that generate long Bridge financing term stable cash flows with some grow
Slide 15: Additional Information
1-Net North Additional Information 14
Slide 16: 3Q 2018: Distributable Cash Flows
3Q 2018: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 819 - 1,227 - (3,112) - (18,814) - 19,460 - (420) - Add/(less) Reduction in concessions/lease receivables - 13,770 - - - 13,770 Non-cash finance cost 100 5 1,623 163 30 1,921 Other non-cas
Slide 17: 3Q 2017: Distributable Cash Flows
3Q 2017: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 6,656 244 (772) (19,666) 19,911 6,373 Add/(less) Reduction in concessions/lease receivables - 13,391 - - - 13,391 Non-cash finance cost 98 6 1,307 159 22 1,592 Other non-cash items (126) 5
Slide 18: 9M 2018: Distributable Cash Flows
9M 2018: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 8,497 2,085 (24,657) (58,879) 57,722 (15,232) Add/(less) Reduction in concessions/lease receivables - 41,181 - - - 41,181 Non-cash finance cost 296 16 4,903 486 84 5,785 Other non-cash ite
Slide 19: 9M 2017: Distributable Cash Flows
9M 2017: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 12,843 365 365 (57,651) 55,480 11,402 Add/(less) Reduction in concessions/lease receivables - 39,961 - - - 39,961 Non-cash finance cost 291 19 3,856 473 2,791 7,430 Other non-cash items 61
Slide 20: Keppel Infrastructure Trust Structure
Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise asset management platform and track record in this industry 100%
Slide 21: Portfolio Overview
Portfolio Overview KIT’s portfolio of highly strategic and core assets Description Customer and Contract Terms Primary Source of Cash Flows Capacity Tolling Agreement with Keppel Energy 1,300MW combined cycle gas turbine Electric until 2030 with option for 10-year Fixed payments for meeting power pl
Slide 22: Thank You
Thank You www.kepinfratrust.com 21
Keppel Infrastructure Trust — Q3 2018 Earnings Presentation on 6ix