15 May 2012
Highlights for the full year result ended 31 March 2012:
Infratil today announced a reported net surplus after tax of $127.0m for the year ended 31 March 2012, up 6.2% on the prior year. Given the strong momentum in the business and the solid capital position the Board today declared a final dividend of 5.0 cents per share bringing the total dividend for FY12 to 8.0 cents per share, up from 6.75 cents previously.
Over the last year the priority has been disciplined growth and operation. In difficult markets it is tempting to chase market share, to postpone development, to harvest rather than sow. Infratil and its businesses continue to balance the requirement to invest in the long term while delivering current performance and yield.
A great deal of work has gone into developing and executing investment options. The group’s capital spending was $246 million(2) and is expected to grow next year, before taking into account the potential for TrustPower’s very substantial Snowtown II project. Over the medium term infrastructure businesses deliver higher earnings and value from growth investment so the pipeline of activity is crucial.
In addition to the $246 million investment in facilities, the group also invested $39 million repurchasing shares (Infratil $34 million and TrustPower $5 million).
Operational discipline has meant ensuring that the basics are done well, services are fairly priced, and that businesses pursue profitable growth. Across most of Infratil’s markets; energy in Australia and New Zealand and fuel and air travel in New Zealand demand has been relatively flat and the priority is to keep meeting user needs effectively and efficiently without losing sight of the long-term. Public transport in Auckland is one exception to this markets picture and NZ Bus is working with Auckland Transport to meet and encourage growing user demand.
(1) EBITDAF is Earnings before interest, tax, depreciation, amortisation and movements in the value of financial derivatives.
(2) Capital investment includes 100% of that undertaken by Z Energy
Infratil’s strong current position and earnings momentum reflects how the group has prioritised capital to deliver disciplined growth in a difficult commercial and financial markets environment. The group’s capital structure anticipates on-going volatility in the capital markets while enabling continuation of our long-term investment programmes. Infratil’s businesses are operating well and are well placed to grow. The people behind these results remain energetic and committed.
For the financial year to 31 March 2013 Infratil’s earning and cashflow guidance is:
Management have also initiated formal processes to sell Infratil’s two remaining European airports and continue to review targeted sectors for new investment opportunities.
Marko Bogoievski Chief Executive
David Newman Chairman
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