Infratil first half profit falls
Infrastructure investor Infratil has reported a 12% fall in net profit for the September half year but its earnings rose 7% and the company remains on track to meet full year guidance.
Infratil’s net profit for the six months to September was $89 million, compared with $101 million a year earlier.
Profit attributable to shareholders was $50 million, down 32% on the prior period’s $74 million, which included a $61 million non-cash fair value gain on the acquisition of Z Energy and one-off tax charges.
Earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf) increased 7.1% to $272.9 million.
The company reaffirmed its ebitdaf forecast for the March 2012 year of between $460 million and $490 million, compared to the $443 million in 2011, and said the outlook for full year operating cash flows has slightly improved.
The underlying earnings growth of 7.1% reflected stronger revenues (up 9% to $1.15 billion) and operating margins, particularly in energy businesses in Australia and New Zealand.
The bottom line was hit by increases in net interest (up $12 million to $92 million) and depreciation and amortisation (up 14% to $66 million).
The company's main investments are 51% of power company TrustPower and a stake in the New Zealand downstream assets of oil giant Royal Dutch Shell.
“Importantly for the future, the investment programme has also been progressed with $107 million committed over the period,” Infratil said in its statement.
“The environment however does present challenges with weak demand and volatile financial markets causing share and bond prices to change in ways that do not necessarily reflect underlying value.”
TrustPower contributed earnings of $161.6 million, up 9%, Infratil Energy Australia $46.2 million, down 25%, Wellington Airport $35.7 million, up 1%, European Airports -$3.5 million, a 26% improvement, NZ Bus $24 million, up 16% and Z Energy $18.4 million, up 86%.