Keppel Infrastructure Trust (KIT) posted net profit of S$23.8 million for the six months ended Jun 30, down 58.6 per cent year-on-year, as fair-value losses on its Aramco Gas Processing Company (AGPC) investment and the absence of one-off gains from last year outweighed higher operating earnings.
KIT’s revenue rose 13.8 per cent year-on-year to S$1.27 billion, lifted mainly by Ixom’s chemicals business and bus operator Ventura. Earnings per unit slipped to 0.35 Singapore cents from 0.99 cents a year earlier. The trustee-manager declared a tax-exempt distribution of 1.99 Singapore cents per unit for the January-to-June period, marginally higher than the 1.97 cents paid a year ago, payable on Aug 13 to unitholders on record as at Aug 5.
Segmentally, the Distribution & Storage division remained the key earnings driver, generating pre-tax profit of S$51.7 million, up from S$86.2 million in H1 2025 when Philippine Coastal gains were booked. Energy Transition contributed S$36.4 million, supported by higher town-gas sales, while Environmental Services swung to a pre-tax loss of S$15.6 million amid lower landfill revenue in South Korea. Digital Infrastructure, represented by subsea cable player Global Marine Group, incurred a S$5.3 million loss before tax, and corporate costs totalled S$29.8 million.
Operationally, Ixom’s top line benefited from the bolt-on acquisition of Hilditch and firmer chlor-alkali prices, while Ventura saw stronger route revenue and fuel-cost recovery. These gains helped offset a S$19.4 million fair-value loss on KIT’s stake in AGPC and lower joint-venture contributions following last year’s divestment of Philippine Coastal.
Looking ahead, management will pursue a “disciplined invest-divest-reinvest” strategy to expand its portfolio of essential infrastructure assets, focus on operational improvements at existing businesses and maintain prudent capital management to back stable distributions. KIT expects higher second-half earnings from its enlarged 90 per cent stake in Keppel Merlimau Cogen (KMC) following the June acquisition of an additional 39 per cent interest. The trust also anticipates a rebound in wind generation at its European wind farms and incremental revenue from Ventura’s acquisition of Crown Coaches completed in July.
The trustee-manager noted that while geopolitical tensions and higher energy prices pose risks, the essential nature of KIT’s assets, long-term contracts and indexed revenue structures are expected to underpin cash-flow resiliency. It will continue to explore extension opportunities for its Singapore water and waste concessions and further organic and bolt-on growth in its chemicals and bus operations.