16 Nov 2010
The year to date has been characterised by positive earnings and value performance.
Infratil measures itself on how well its businesses increase their value - the total return. For a long-term investor this will reflect operational performance and factors which change future earnings. At both levels the start of the 2010/11 financial year was positive. Greenstone and Infratil Energy Australia, especially, stood out with both their earnings contributions and progress with their long-term strategies. Infratil’s other businesses performed satisfactorily over the six months when measured on a value or total return basis:
A dividend of 2.5 cps fully imputed will be paid 17 December to shareholders on the share register as at 3 December. The Dividend Reinvestment Plan will operate.
In March EBITDAF earnings guidance was given for FY2011 of $390 million to $430 million. The first half result was very strong and the full year result is now expected to be between $415 million to $435 million.
The emerging success of Infratil Energy Australia and Greenstone Energy are both in different ways illustrative of the “Infratil model”. Both companies, one a start-up, the other a venerable 100 years old, were difficult to execute and required a willingness and ability to invest for the future. IEA has been a six year project. Greenstone was acquired amidst scepticism about the transaction’s merits and the sector.
A good half year is only that, half way there. The objective now is to maintain the momentum, both in the second half and beyond.
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