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

 


Infratil lowers guidance for 2014 earnings

Infratil lowers guidance for 2014 earnings, citing weaker NZ energy, public transport markets

April 4 (BusinessDesk) – Infratil lowered its expected earnings for the year just ended, citing a weaker performance from the infrastructure investor’s New Zealand energy and public transport markets and the impact of a lower Australian currency.

Earnings before interest, tax, depreciation, amortisation, financial derivatives and adjusted for Z Energy replacement cost of inventory were $490 million to $500 million in the year ended March 31, down from its previous guidance of $500 million to $540 million, the Wellington-based company said in a statement, citing unaudited figures. That’s down from EBITDAF of $538 million a year earlier.

“The updated EBITDAF guidance for 2014 is at the lower end of the previous guidance range due to a slightly weaker trading performance in New Zealand energy and public transport markets and the impact of the weaker AUD$ on earnings,” chief executive Marko Bogoievski told an investors' briefing in Wellington.

Shares in Infratil dipped 1.4 percent to $2.24. The stock is rated an average ‘buy’ according to analysts polled by Reuters.

In the past year, Infratil has reduced its holding in petrol retailer Z Energy and added a stake in retirement village developer and operator Metlifecare to its energy, airport and public transport holdings. In an environment of increased completion for low-risk core infrastructure, the company favours investment in well positioned assets with opportunities for further investment which may require a longer holding period, Bogoievski said today.

He said Infratil is repositioning its portfolio for the next 10 to 15 years, though it hasn't changed its fundamental approach in seeking high-growth infrastructure investments.

"We'll come at opportunities in any market if we feel ultimately we can deliver our model," Bogoievski said.

In the latest year, Infratil had benefited from higher operating cash flow from improvements in working capital and dividends received from selling some of its holding in Z Energy in an initial public offering, he said.

Infratil upgraded its expectation for operating cash flow in the year ended March 31 to $400 million to $420 million, from a previous forecast of $360 million to $400 million.

Meantime, the company’s net interest costs would probably fall to $180 million to $195 million, from a previous forecast of $195 million to $205 million, it said.

For the coming 2015 year, Infratil expects EBITDAF of $530 million to $560 million, operating cash flow of $330 million to $360 million and net interest costs of $180 million to $190 million, it said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news