17 Nov 2009
Infratil has made significant progress repositioning its assets and strengthening operational and financial metrics:
A fully imputed dividend of 2.5 cents per share is to be paid on 11 December 2009 to shareholders as at 4 December 2009.
Earnings (EBITDAF) were $207.3 million (from $203.0 million for the same period last year) and the Operating Surplus was $70.4 million (from $67.0 million). Non-cash charges of $80.0 million were recorded for asset and financial instrument revaluation (partially offset by $26.2 million of cash gains on sale of investments) resulting in a net loss of $31.4 million (net surplus of $7.3 million last year).
Over the period, $97.9 million of equity was raised as the five-year IFTWB warrants were exercised or extended and $215 million was realised by the sale of assets ($152 million after 30 September 2009). Capital expenditure and investment amounted to $112.9 million.
Over the six months the net borrowings of Infratil and wholly owned subsidiaries declined $105 million. TrustPower and Wellington Airport produced record earnings. Infratil Energy Australia delivered customer growth and retail margin improvements, although its earnings were impacted by exceptional items. New Zealand Bus was slightly down on the same period last year and Infratil Airports Europe loss was reduced on the back of good cost control.
Infratil’s earnings outlook for 2009/10 is slightly lower than indicated six months ago, while still forecast to be higher than was achieved in 2008/9.
The economic environment demands an active approach to managing the portfolio and recent transactions are consistent with Infratil’s approach to investment of positioning its capital in growth companies which it controls. Over the period incremental investment encompassed generation in Australia, Wellington Airport’s international terminal, the NZ Bus fleet upgrade and TrustPower’s IT system. Infratil is also working with the New Zealand Superannuation Fund to acquire Shell’s New Zealand energy distribution and refining assets. If completed, the transaction would be attractively priced and result in control of an integrated downstream energy business in a stable market with earnings growth opportunities.
Infratil’s reputation is based on providing its shareholders with high absolute returns over the long-term. This result will occasionally be hostage to share market factors but ultimately they are driven by the profitability and value of the business. On this level Infratil is well positioned.
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