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%.
Back to home
Back to top
Print
Latest
NBR SERVICES
SUBSCRIPTIONS
Sign up for NBR subscriber content or email alerts
Comments and questions4
typical 'spin' infratil puts on its numbers. A real dog of a company, hard to believe the NZ super fund entrusted infratil to manage the shell petrol stations... Z energy is a joke...
J Alve - what planet are you from ? As a Infratil investor since 1994 I am extremely happy with this company. The result is a good result, given the circumstances and the commercial environment. Infratil is an asset play not a revenue play and I think z is going to be a serious contributor to Infratil and NZ Super. I am concerned about NZ bus - dont think the Infratil guys are on top of this one and need more hands on bus experience running this part, but i expect overall performance should ensure Infratil produces a stellar result in 2012.
I spent 26 years in the international oil industry - in marketing and refining - and you don't know what you are talking about.! The management of Z Energy are doing a great job, and the business has a real future under Mike Bennetts and his team. I wouldn't do everything they are doing, but they are definitely on the right track for Infratil and the NZ Super Fund.
Well thanks for the chest puffing Lindsay. I have spent 42 years in the industry and have worked for several of the multinational oil companies across numerous roles. I was marketing oil when you were barely a glint in your father's eyes, SO just remember - before you start bragging about what you think you might know, you probably know nothing.
Infratil have mismanaged pretty much every 'asset' they have come in contact with. As a taxpayer who picks up more than my share of the tax burden I object to NZ's hard earned funds being pumped into a business that is run by a pack of imbeciles.