Infratil raises forecast on Longroad performance

By Gavin Evans

Sept. 28 (BusinessDesk) - Infratil has raised its full-year earnings guidance on the performance of its Longroad Energy business in the US.

The infrastructure investor is expecting its underlying operating earnings will lie between $540 million and $580 million in the year to March 31, 2019.

That compares with $552.4 million last year and the firm’s previous forecast for earnings before interest, tax, depreciation, amortisation and changes in financial instruments of $500 million to $540 million.

Infratil said the increase reflects a $34 million improvement in the contribution it expects from Longroad, a US wind and solar developer part-owned by the New Zealand Superannuation Fund.

The firm’s shares rose 0.7 percent to $3.58, having gained 5.6 percent so far this year.

Infratil’s earlier forecast was made in May. In July, Longroad agreed to sell its 250 MW Phoebe solar project in Winkler County Texas to Canadian investor Innergex Renewable Energy. In August Infratil said it expected a US$30 million distribution from Longroad post the Phoebe sale.

Infratil said it has been working with Longroad since July to finalise the net development gains and accounting profit from the project sale. The latest forecast also includes an update of Longroad’s forecast earnings for the remainder of the financial year.

Wellington-based Infratil has controlling stakes in Trustpower and Wellington International Airport and is in the process of taking over Tilt Renewables in partnership with Mercury NZ. It also has stakes in retirement businesses, student accommodation and data centres.

It said the other assumptions for its earnings forecast remain unchanged.

(BusinessDesk)

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