Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Infratil takes $43.9M charge on British airports up for sale

Infratil takes $43.9M charge on British airports up for sale ahead of 1H result

By Paul McBeth

Nov. 9 (BusinessDesk) - Infratil, the infrastructure investment firm, has taken a $43.9 million charge to write down the value of the two British airports it's trying to sell ahead of its first-half results next week.

The Wellington-based firm wrote down the carrying value of the Glasgow Prestwick and Kent airports by 22.2 million pounds, which will be reflected in the first-half net profit, the company said in a statement. The investment firm is trying to sell the unprofitable airports, and has already written down their value by $60.4 million in the past two financial years.

"The impairment charge reflects market feedback received as part of this (sale) process," the company said. "Infratil continues to actively seek a buyer for the airports, while considering all other options available with respect to the ongoing operations."

Infratil is reportedly part of a consortium including its manager Morrison & Co and the New Zealand Superannuation Fund making a bid for Stansted airport, Britain's third-largest gateway.

The investment firm has flagged earnings before interest, tax, depreciation, amortisation and changes in fair value (ebitdaf) will be between $530 million and $560 million in the 2013 financial year, up from $520.2 million a year earlier.

Infratil shares were unchanged at $2.19 yesterday, and have gained 16 percent this year. The stock is rated an average 'outperform' based on six analyst recommendations compiled by Reuters, with a median target price of $2.30.

Separately, Wellington International Airport, which is controlled by Infratil, reported a narrower first-half loss of $5.6 million in the six months ended Sept. 30, from $6.7 million a year earlier. The airport lifted revenue 8.1 percent to $51.4 million, with a 13 percent hike in landing and terminal charges, more than doubling ebitdaf to $9.5 million.

Last week, the airport was found to be targeting excessive returns in a draft Commerce Commission report which were beyond what the regulator considered reasonable.

"Wellington Airport is reviewing the findings set out in the draft report as it does not appear to recognise the overall forecast returns which are in line with the commission's guidelines," the airport said.

The airport made a subvention payment to Infratil subsidiaries of almost $30 million in the period, down from $30.1 million a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news