THE manager of Keppel Infrastructure Trust : A7RU 0%(KIT) reported a distribution per unit (DPU) of S$0.0193 for the first half of its 2023 financial year.

This is a 1 per cent increase from DPU of S$0.0191 over the same period a year ago.

The DPU translates to a distribution yield of 7.5 per cent, based on KIT’s closing price of S$0.51 as at Jun 30.  

The latest distribution will be paid out on Aug 11.

The higher DPU was a result of a jump in distributable income, which grew 51.8 per cent to S$132.9 million for H1 FY2023 ended Jun 30, from S$87.6 million a year ago, said the manager in a bourse filing on Wednesday (Jul 26).

The jump was mainly due to higher contributions from piped gas distributor City Energy and new acquisitions completed in the previous FY. These assets contributed S$68.6 million or 38.5 per cent of the assets distributable income.

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KIT’s acquisitions, such as the Aramco gas pipeline project, come under its energy transition segment, which continued to be the biggest contributor to its total distributable income.

Distributable income for the segment grew 165.8 per cent to S$97.7 million, from S$36.8 million.

The environmental services segment saw its distributable income increase 3.7 per cent to S$38.9 million, from S$37.5 million a year ago.

However, KIT’s distribution and storage business declined, with distributable income falling 4.7 per cent to S$41.6 million, from S$43.6 million.

Gross revenue grew 12.4 per cent to S$1.1 billion, from S$946.3 million.

The manager said it is largely insulated from higher energy prices and inflation.

KIT has a net gearing ratio of 38.5 per cent as at Jun 30, which the manager said would provide a comfortable debt headroom to pursue growth opportunities.

To mitigate against fluctuating interest rates, approximately 77.4 per cent of KIT’s total loans are fixed and hedged as at Jun 30.

Units of KIT closed flat at S$0.52 on Wednesday.