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

 


Infratil lifts 1H dividend as electricity investments shine

Infratil lifts 1H dividend as electricity investments, Wellington airport shine

By Paul McBeth

Nov. 13 (BusinessDesk) - Infratil, the infrastructure investment firm, lifted its first-half dividend 8.3 percent on the strength of its energy investments on both sides of the Tasman and a controlling stake in Wellington International Airport.

Earnings before interest, tax, depreciation, amortisation and unrealised changes in fair value (ebitdaf) gained 7 percent to $290.9 million in the six months ended Sept. 30, the Wellington-based company said in a statement.

The firm reported a net loss of $16.5 million, or 2.8 cents per share, compared to a profit of $50.2 million, or 8.3 cents, a year earlier, after writing down the value of its British airports and due to movements in the value of interest rate swaps and energy derivatives.

Infratil will pay an interim dividend of 3.25 cents per share, or $19 million, on Dec. 14, up from 3 cents a year earlier.

The company held its annual ebitdaf guidance at a range of between $530 million and $560 million, while trimming $10 million from its forecast operating cash flow to $250 million and $280 million. It increased forecast group investment by $175 million to $195 million, to a range of $415 million and $475 million.

Infratil Energy Australia was the biggest gainer for the group, increasing ebitdaf 54 percent to $71.2 million on increased customer numbers and better gas and electricity margins. Infratil reviewed its ownership of Perth Energy in the period, and decided to stick with the status quo.

TrustPower increase ebitdaf 3 percent to $166.1 million, and remains Infratil's biggest earner, despite shedding customers and generating less energy. Infratil flagged the $550 million Snowton II windfarm investment as the major event in the period, and anticipates the project, which is the group's biggest ever investment, will add annual ebitdaf of $99 million when fully commissioned.

Wellington Airport improved earnings 11 percent to $39.5 million, though regulatory oversight of its pricing has left the transport hub uncertain about its long-term outlook.

NZ Bus earnings shrank 9 percent to $21.8 million as bus usage slowed from the fillip of the Rugby World Cup last year, and Z Energy ebitdaf more than halved to $7.9 million on falling market share.

Infratil said management reviewed a number of potential acquisitions in the period without concluding any transactions, and is still trying to sell its loss-making Kent and Glasgow airports.

The company didn't allude to reports that it's 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.

Infratil paid a management fee of $10.1 million to Morrison & Co Infrastructure, up from $8.9 million a year earlier.

The shares slipped 0.2 percent to $2.175 in trading 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 $2.3175.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news