SG Morning Highlights | Keppel Infrastructure Trust Reports Loss of S$23.9 Million in H1 2024 Amid Revenue Decline

Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.93 percent to 3458.48 as at 9:21 am.

$Kep Infra Tr (A7RU.SG)$: Keppel Infrastructure Trust (KIT) has reported a loss of S$23.9 million for the first half of 2024, a stark contrast to the profit of S$39.4 million in the previous year, due to a 5.8% decrease in revenue, which fell to S$1 billion. This decline was mainly attributed to lower revenue from chemical supplier Ixom and diminished distribution income from Aramco Gas Pipelines. Despite the downturn, KIT's distributable income was S$91 million, and it declared a slightly increased distribution per unit. The trust also completed a phase in its solar portfolio expansion in Germany and secured a sustainability-linked loan for Keppel Merlimau Cogen, emphasizing energy efficiency and carbon reduction. KIT's shares ended with a modest uptick on the announcement day.

$SIA Engineering (S59.SG)$: SIA Engineering Company (SIAEC) reported a net profit increase of 23% year-on-year, reaching $33.2 million for the first quarter of FY2025, bolstered by a 2.6% revenue growth to $268.7 million. Operating profit also saw a significant rise of 150% to $1.0 million, with contributions from both engine and component, and airframe and line maintenance segments. The earnings per share stood at 2.95 cents on a diluted basis. The company experienced a recovery in flight activity, with line maintenance handling 11.5% more flights year-on-year and flight recovery nearing pre-pandemic levels. Despite challenges like a tight labor market and supply chain constraints, the outlook for maintenance, repair, and overhaul services remains positive. The company's equity attributable to owners increased by 2.1% quarter-on-quarter to $1.72 billion, and total assets also grew to $2.14 billion.

$Seatrium Ltd (5E2.SG)$: Seatrium has secured a significant Favoured Customer Contract agreement with Teekay Shipping (Australia) Pty Ltd (Teekay) to provide repairs and upgrades for vessels under Teekay's Australia Defence Maritime Support Services Program (DMSSP). This first-of-its-kind long-term strategic partnership involves a two-year plan for refitting a series of vessels, with the first docking scheduled for July 2024. The agreement was formalized by Teekay's Managing Director, Mr Tony Armstrong, and Seatrium's Executive Vice President, Mr Alvin Gan, reflecting a shared commitment to operational excellence, high HSE standards, and collaborative planning. The partnership emphasizes enhancing service delivery and environmental sustainability in vessel maintenance, with six more dockings planned over the next year. Seatrium, recognized as a world leader in vessel repairs and upgrades, prides itself on offering custom solutions and fostering strong client relationships for a more energy-efficient and low-carbon maritime future.