K-Green – BT

K-Green Trust posts $4.4m profit in Q3

K-GREEN Trust posted a third-quarter net profit of $4.4 million yesterday. Because the business trust was listed on the Singapore Exchange on June 29, the group also reported its net profit thus far (June 29-Sept 30), which stood at $4.57 million, 26.5 per cent higher than a pro-rated forecast of $3.61 million.

Revenue for June 29-Sept 30 was $26.5 million, 17.1 per cent lower than projected. ‘This was mainly due to a shift in schedule of the flue gas upgrading works for Senoko Plant, leading to lower recognition of EPC revenue by $6.3 million,’ said K-Green. Construction expense was correspondingly also lower than projected. Also lower than forecast were trust and ‘other operating’ expenses.

For the third quarter, K-Green recorded revenues of $26.1 million. This comprised construction revenue of $10 million, finance income of $4.65 million and operation and maintenance income of $11.45 million.

The group, whose objective is to invest in ‘green’ infrastructure assets, currently holds three plants – the Senoko Waste-to-Energy (WTE) Plant, the Keppel Seghers Tuas WTE Plant and the Ulu Pandan NEWater Plant. Keppel intends to add other assets to the trust.

Earnings per share for K-Green for the third quarter was 0.7 cent. EPS from its date of listing to Sept 30 was 0.73 cent.

K-Green’s shareholders are mostly entitled Keppel Corporation shareholders, who received one K-Green unit with an implied value of $1.13 for every five Keppel shares held. K-Green’s shares represent a part of Keppel’s proposed dividend in specie of 61 cents for FY2009. The distributed K-Green units represent 51 per cent of the trust’s units. K-Green’s sponsor, Keppel Integrated Engineering Limited, owns 49 per cent of the units.

Net asset value per unit as at Sept 30 was $1.15. K-Green units gained one cent to close at $1.10 yesterday.