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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news