CitySpring Infrastructure Trust has declared a distribution per unit (DPU) of 1.05 cents for the quarter on the back of cash earnings of $23.1 million for the three months ended 30 September 2010 (2Q FY11). This included contributions from City Gas, the SingSpring desalination plant and the Basslink electricity interconnector and telecoms businesses.
As the sole producer and retailer of town gas in Singapore, City Gas achieved cash earnings of $13.1 million, continuing to benefit from the strength of Singapore’s food and beverage industry. The year-on-year improvement was also partly attributed to the mis-match between City Gas’ fuel costs and tariffs. Over time, its tariff setting mechanism is designed to ensure that it is not affected by changes in fuel costs.
The Trust’s water desalination plant, SingSpring, continued to achieve 100% availability. It recorded cash earnings of $4.7 million, unchanged from the same period last year. This reflects the stability of its long-term offtake contract with the Public Utilities Board of Singapore.
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