KGT – BT

K-Green Trust’s H2 distribution up

K-GREEN Trust posted a net profit of $16 million for the year ended Dec 31, 2011, 17.3 per cent higher than its projection of $13.6 million.

Distribution per unit (DPU) for the second half- year of 2011 was 4.69 cents, 8.8 per cent higher than the 4.31 cents paid for the June 29 to Dec 31 period in 2010.

As the business trust was listed on June 29, 2010, full-year comparisons with 2010’s earnings are not meaningful.

Together with the DPU of 3.13 cents for the period from Jan 1 to June 30, 2011, total cash distribution for FY2011 was 7.82 cents, representing a distribution yield of 8.6 per cent based on K-Green’s unit closing price of 90.5 cents on Dec 31, 2011.

Said Thomas Pang, CEO of Keppel Infrastructure Fund Management Pte Ltd, trustee-manager of K- Green Trust: ‘K-Green Trust has achieved good performance in the year 2011. In 2012, we will focus on acquisitions in areas of waste management, water treatment, renewable energy and energy efficiency, including assets which were identified under the Rights of First Refusal, as well as asset enhancement opportunities in our existing portfolio.’

Revenue for the year was $90.6 million, 17.9 per cent higher than the projected figure of $76.8 million. This was mainly due to $10.1 million higher recognition of construction revenue, following a shift in the schedule of flue gas upgrading works for Senoko Plant from FY2010 to FY2011. This is in progress and is scheduled for completion by June this year.

K-Green said the underlying performance of the three assets in its portfolio – Senoko Waste-to-Energy Plant, Keppel Seghers Tuas Waste-to-Energy Plant, and Keppel Seghers Ulu Pandan NEWater Plant – is expected to remain stable.

The company said ‘all three assets have long-term concession agreements with Singapore statutory bodies’, namely the National Environment Agency and Public Utilities Board.

K-Green Trust closed 2 cents higher at 95.5 cents yesterday.