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Infratil Results For The Year Ended 31 March 2009

18 May 2009

Infratil's operational, investment and financing activities delivered good results and were testament to the robustness of Infratil's activities and its financing arrangements. The bottom line reflected accounting treatment of non-cash write downs of listed investments, while overall revaluation of assets were actually positive.

For the year ended 31 March 2009 Infratil’s consolidated earnings (EBITDAF) were $356 million, up 13% from $316 million for the previous year. The operating surplus (earnings after interest, depreciation and amortisation) was $77 million, from $88 million and operating cash flows adjusted for movements in working capital increased to $144 million from $134 million. Investment and capital spending amounted to $300 million, down from $507 million in 2008.

Infratil’s core businesses, TrustPower, Wellington Airport and Infratil Energy Australia delivered improved results while NZ Bus was slightly down. Infratil’s European Airports performed poorly. Higher interest and depreciation charges were due to recent capital spending on enhanced and expanded facilities. Lower investment outflows occurred as new investments were curtailed and discretionary capital spending programmes wound down.

Infratil’s net loss after tax and minority interests rose to $191 million compared with a loss of $2 million in 2008, largely due to $179 million of non-cash write downs associated with listed investments. Overall revaluations were positive, but were mainly taken to Reserves rather than through the Profit and Loss Account.

Infratil’s liquidity and funding position withstood the difficult financial market due to good risk management and proactive positioning.

A fully imputed dividend of 3.75 cents per share is to be paid in July. The dividend is unchanged from last year.

Infratil’s outlook for the 2009/2010 year is for increasing earnings, lower financing costs and reduced net investment.

Infratil operational immediate goals are:

  • Addressing under-performance. Not all of Infratil’s businesses and investments are providing a satisfactory return and they must be improved, or the capital extracted for better use elsewhere. Infratil will continue to rebalance it’s portfolio between long duration investments, capital growth, and current returns as volatility and the cost of capital rise.

  • Capital preservation and financial flexibility. Postponing spending where opportunities are durable and only entering into new capital commitments where opportunities are both perishable and of exceptional quality.

  • Proactive management of risks.

Infratil’s businesses, financing and risk management is undertaken with the over-riding goal of delivering superior risk-adjusted returns to shareholders. The target is 20% p.a. after tax over the long run. Following last year’s fall in share price Infratil is no longer exceeding that long-term target, but the Company has delivered 18% p.a. after tax over the 15 years since its establishment.
This out performance is based on being well positioned in the right sectors, having excellent management, investing to deliver compound growth, and scrupulous attention to risk management. Infratil’s ingredients of success remain intact.

Infratil Result Announcement in full

Results Breakdown

Results Presentation

Infratil Ltd Audited Financial Statements for the Year Ended 31 March 2009

Trustpower Wellington Airport Infratil Property RetireAustralia CDC Data Centres Vodafone New Zealand Qscan Pacific Radiology Kao Data Longroad  Galileo Green Energy GmbH Gurīn Energy