Keppel Infrastructure Trust to acquire Ixom

Keppel Infrastructure Trust to acquire Ixom

 • Acquisition of one of the leading players in chemicals manufacturing and distribution in Australia and New Zealand extends KIT’s capabilities in the industrial infrastructure space • Provides long-term stable cash flows underpinned by multiple core infrastructure assets and a well-positioned network of infrastructure, increasing DPU stability for Unitholders • Acquisition is expected to be DPU yield accretive • Strengthens KIT’s portfolio and increases AUM to S$5.1 billion


Singapore, 15 November 2018 – Keppel Infrastructure Fund Management Pte Ltd (“KIFM”), in its capacity as Trustee-Manager of Keppel Infrastructure Trust (“KIT”), is pleased to announce that through its wholly-owned subsidiary, it has entered into a share sale agreement with certain funds managed by Blackstone and certain management sellers for the proposed acquisition of a 100% interest in Ixom HoldCo Pty Ltd (“Ixom”). The enterprise value for Ixom is A$1,100 million1 (approximately S$1,097 million2).
 Ixom (together with its subsidiaries, “Ixom Group”) is amongst the leading industrial infrastructure businesses in Australia and New Zealand, supplying and distributing water treatment chemicals which are key to fundamental industries, as well as industrial and specialty chemicals. The Ixom Group manufactures and distributes water treatment chemicals, such as liquefied chlorine, chlorine derivatives and caustic soda (chlor-alkali). The Ixom Group is the sole manufacturer of liquefied chlorine in Australia, as well as a leading provider of manufactured caustic soda. The Ixom Group is also one of the largest bulk and packaged chemical distribution businesses in Australia and New Zealand dealing in chemicals such as sulphuric and nitric acids. The chemicals manufactured and distributed by the Ixom Group are fundamental components used in a range of industries, which have favourable demand outlooks, including water treatment, dairy and agriculture, mining, construction and nickel refining. 
 Underpinning the Ixom Group’s business is a large network of well-positioned infrastructure. This includes chlor-alkali manufacturing facilities and bulk storage sites in key regions across Australia and New Zealand that support the Ixom Group’s import and distribution activities.
 

Keppel Infrastructure Fund Q1FY2017

Cash                          $255m ($207m Excluding Basslink)
Borrowings               $1840m ($1094m ditto)
Net Debt                    $1585m ($888m ditto)
Net Assets                  $4102m ($3074m ditto)
Total Liabilities         $2680m ($1210m ditto)
Annualized EBITDA $236m ($171m ditto)
Net Gearing                38.7% (28.9% ditto)
Net Debt/EBITDA      6.7X (5.2X ditto)

Loans

City Gas                      $178m (bullet)
SingSpring                  $68.4m (Amortising)
BassLink                     $753.6m (Amortising)
KMC                           $700m (Bullet)
KIT                              $150.7m (Bullet)

Keppel Infra Trust 4QFY2016

DPU                                0.93 cents
Distributable CF             $32m
NAV                               32.5 cents
Gearing                           37%

Total Assets                    $4,119m ($3158m ex-Basslink)
Total Liabilities              $2,665m ($1197m, ex-Basslink)
Total Borrowings           $1,811m ($1069m, ex-Basslink)
Cash                                $267m ($220m, ex-Basslin)
Net Debt/EBITDA          6.6X (4.6X, ex-Basslink)

Distributable Cash Flows
City Gas                        $4,274k
Concessions                  $17,746k
KMC                             $11,568k
DC One                         $885k
Others                            ($2,523k)
Total                              $31,950k

Keppel Infrastructure Trust 3QFY2016

DPU                                0.93 cents
Distributable CF             $38.9m
NAV                               31.6 cents
Gearing                           37%

Total Assets                    $4,086m ($3151m ex-Basslink)
Total Liabilities              $2,665m ($1169m, ex-Basslink)
Total Borrowings           $1,753m ($1040m, ex-Basslink)
Cash                                $259m ($208m, ex-Basslin)
Net Debt/EBITDA          7.6X (5.8X, ex-Basslink)

Distributable Cash Flows
City Gas                        $10,090m
Concessions                  $18,221m
KMC                             $11,398m
DC One                         $1,595m
Others                            ($2,418m)
Total                              $38,886m

Keppel Infra Trust 2QFY16

DPU                                0.93 cents
Distributable CF             $38m (City Gas - $12.1m, KMC - $11.2m, Concessions - $17.4m, Others - ($2.6m) )
NAV                               32.4 cents
Gearing                           36%    (25% without Basslink)

Total Assets                    $4,061m
Total Liabilities              $2,596m
Total Borrowings           $1,706m ($1007m without Basslink)
Net Debt                         $1,455m ($799m without Basslink)
Cash                                $251m
Net Debt/EBITDA          6.1X (3.8X without Basslink)

Basslink loans are non-recourse and currently Basslink CF are used to pay down debt and not for DPU. As a result of an outage earlier this year, currently the borrower is unable to meet the interest coverage ratio under the agreed Project Financing.Thus, as a condition of the waiver given under this default event, the borrower is  obliged to agree with the Financiers on a Long Tem Financing Plan  to be announced at a later date.

Keppel Infrastrusture Trust 1QFY2016

DPU                                0.93 cents
Distributable CF             $40.7m
NAV                               33.7 cents
Gearing                           36%

Total Assets                    $4,094m
Total Liabilities              $2,570m
Total Borrowings           $1,708m
Cash                                $221m
Net Debt/EBITDA          6.8X

Keppel Infra Trust FY2014

Revenue                                 $65,451,000
Operating Profit                     $13,103,000
Net Profit                               $12,709,000
Cash &Cash Equiv                $49,744,000
EPS                                        2.02 cents
DPU                                       4.69 cents (2HFY2014)
Adjusted NAV                       $0.89 (after 2HFY2014 distribution)

Keppel Infra Trust 2QFY2014

Revenue                                        $16,430K
Net Profits                                     $3,341K
Net Assets                                     $604,942K
Cash & Cash Equiv                       $40,264K
EPS                                                0.53 cents
Adjusted NAV                               $0.93 (Adjusted)
DPU                                               3.13 cents

KGreen 1QFY2014

Revenue                                        $16,784K
Net Profits                                     $3,502K
Net Assets                                     $601,601K
Cash & Cash Equiv                       $27,932K
EPS                                                0.56 cents
Adjusted NAV                               $0.96

KGreen FY2013

Revenue                                        $67,113K
Net Profits                                     $14,183K
Net Assets                                     $627,636K
Cash & Cash Equiv                       $43,143K
EPS                                                2,25 cents
DPS 2HFY2013                            4.69 cents
Adjusted NAV                               $0.95

K-Green 3QFY2003

Revenue                                        $17,082K
Net Profits                                     $3,796K
Net Assets                                     $624,308K
Cash & Cash Equiv                       $28,453K
EPS                                                0.60 cents (FY2012 : 0.56 cents)
1H FY13                                        1.72 cents
Adjusted NAV                               $0.99

K-Green 2QFY13

Revenue                                        $16,767K
Net Profits                                     $3,857K
Net Assets                                     $640,224K
Cash & Cash Equiv                       $34,663K
EPS                                                0.61 cents (FY2012 : 0.69 cents)
1H FY13                                        1.12 cents
Adjusted NAV                               $0.99
DPS                                                3.13 cents

K-Green Q1FY2013

Revenue                                         $17,000K
Net Profits                                     $3,202K
Net Assets                                     $636,367K
Cash & Cash Equiv                       $21,870K
EPS                                               0.51 cents (FY2012 : 0.56 cents)
Adjusted NAV                               $1.01

K-Green FY2012

Revenue                                         $76,248K
Net Profits                                     $14,777K
Net Assets                                     $662,702K
Cash & Cash Equiv                        $42,795K
EPS                                               2.35 cents (FY2012 : 2.54 cents)
Adjusted NAV                               $1.01(as at 31th Dec 2012)
DPS                                               4.69 cents (2HFY2012)

K-Green Q3FY2012

Revenue                                        $22,954,000
Net Profits                                     $4,318,000
Net Assets                                     $675,504,000
Cash & Cash Equiv                        $40,551,000
EPS                                                0.69 cents (1HFY2012 : 1.25 cents)
DPU                                               3.13 cents
Adjusted NAV                                $1.04 (excluding distribution payable)

K-Green Q1 FY2012

Profit After Tax                 = $3.5million
EPS                                   = 0.56 cents
NAV (at 31 March 2012)  = $1.07
Cash Generated from Ops = $11.7 million
Revenue                             = $19 million
Net Assets                          = $671,186K
Net Liability                       = $15,005K

K-Green

K-Green released their FY2011 results yesterday. Here are the key statistics:-

EPS FY2011 = 2.54 cts

NAV (as at 31th Dec 2011) = $1.11

DPU (2HFY2011) = 4.69 cts

Net Assets = $697, 174, 000 (compare to $726,080,000 in FY2010)

Total Liability = $20,024,000

K-Green Q2FY2011

Key Figures

EPS (1H FY2011)  = 1.26 cents
DPU - 3.13 cents
NAV (as at 30th June 2011) =$1.13
Net Assets = $708,798,000
Nbr of Shares = 629M (approx)

The key metric I monitor for K-Green is really NAV besides the DPU.If NAV deteriorates excessively, it signal trouble.

K-Green

Key Statistics for FY2010

Profit After Tax (from date of listing to 31 Dec 2010)  -   $8.7million
EPU - 1.39cts
NAV - $1.16
DPU - 4.31cts
Annualized Distribution Yield - 7.9% (based on share price $1.07)
Adjusted NAV - $1.11 (excluding new units issued for Trust-Manager Fees and distribution payable)
Total Liability -  $35.892 million
Trust Manager's Fees - $2.305 million (from date of listing to 31 Dec 2010)

Currently half of the Trust Manager Fees is paid in terms of issuing new units