KGT – BT

K-Green profit after listing beats forecast

DPU from listing date to year-end 4.31cents, 10.2% higher than 3.91cents forecast

K-GREEN Trust has posted a net profit of $8.73 million for the period from its listing on June 29 to Dec 31, 2010, 22 per cent higher than forecast.

Including the net profit of $847,000 for the period Jan 1 to June 28, 2010, when it was a private trust, full-year net profit for the green infrastructure assets trust came to $9.57 million.

Full-year revenue was $65.8 million, while revenue garnered since listing was $49.3 million.

The latter is 22.1 per cent lower than the forecast of $63.3 million, mainly due to lower contributions from a delay in flue gas upgrading works for K-Green’s Senoko Waste-to-Energy Plant.

K-Green holds two other plants: the Keppel Seghers Tuas WTE Plant and the Ulu Pandan NEWater Plant.

The majority of K-Green’s full-year revenue – $35.3 million – came from the operation and management of its three plants. The Senoko Plant flue gas upgrade brought in another $16.5 million.

Distribution per unit (DPU) for K-Green from the listing date to the year-end was 4.31 cents, 10.2 per cent higher than K-Green’s forecast of 3.91 cents. K-Green said its annualised distribution yield stands at 7.9 per cent, based on a unit closing price of $1.07 on Dec 31, 2010.

K-Green disclosed its earnings per unit from the date of listing to Dec 31 is 1.39 cents. As at Dec 31, 2010, net asset value per unit for the group – which includes the performance of the holding company, K-Green and the three plants – stands at $1.16.

K-Green has said it will add more assets to its holdings, understandably from regions where it has a focus in ‘Asia, Europe and the Middle East’.

Said Thomas Pang, CEO of Keppel Infrastructure Fund Management, trustee-manager of K-Green Trust: ‘The growing sustainable development sector now and in the foreseeable future will drive demand for waste management, water and wastewater treatment, renewable energy, energy efficiency and other green initiatives.

‘K-Green Trust will be well positioned to evaluate these opportunities to grow our asset base.’

K-Green Trust ended trading up 2 cents to $1.10 yesterday.