CitySpring – BT

CitySpring’s Q3 DPU of 1.6cents beats projections

CITYSPRING Infrastructure Trust has beaten projections with its performance in its third financial quarter ended Dec 31, 2007.

It has declared a distribution per unit (DPU) of 1.6 cents for Q3 FY2008, 6.7 per cent or 0.1 cent above the projected DPU provided at the time of its IPO in February 2007.

Cash earnings of $20.5 million were also 92 per cent higher than projection, CitySpring said. It defined cash earnings as the aggregate of profit before income tax adjusted for non-cash income and expenses and lease receivable repayment, after deduction of capital expenditure and before principal repayment of debt.

‘The creditable financial performance came on the back of $97.0 million in revenue for the quarter, underpinned by robust contribution from City Gas Trust, SingSpring Trust (the initial assets) and Basslink,’ CitySpring Infrastructure Management Pte Ltd, the manager of the trust, said in a statement.

All three assets in the CitySpring portfolio turned in healthy performances during the quarter. City Gas Trust registered better than projected results, benefiting from an increase in gas tariffs which took effect on Nov 1, 2007. City Gas Trust has further raised its gas tariffs by 7.6 per cent from Feb 1, 2008, against the backdrop of higher fuel costs.

SingSpring Trust maintained its average dispatch volume of desalinated water to the Public Utilities Board during the period. It expects to remain a leading supplier of desalinated water in Singapore.

Basslink achieved total cumulative availability of 98.8 per cent for the full calendar year in 2007. It expects to achieve at least 97 per cent in availability for 2008. Basslink is the electricity interconnector linking Tasmania to mainland Australia.

Said CEO of CitySpring Infrastructure Management Fai Au Yeung: ‘We are continuing to actively identify initiatives that will enhance the value of our portfolio assets and improve cash earnings as well as returns.’

‘At the same time, we remain focused on seeking quality projects, across the region, which generate long-term, regular and predictable cashflows to further enhance our asset portfolio. There is a healthy flow of potential acquisition opportunities which is keeping the trustee manager busy. We are not facing any issues with regard to raising debt to fund these opportunities.’