High-flying Infratil soars to $29m profit

By CHRIS DANIELS

Airports and renewable energy projects still top the wish-list of Infratil, which has reported a healthy profit and 5c dividend for the past six months.

The Wellington-based investment company made a $29.63 million profit for the half year to September 30, up from $12.53 million last year.

Trustpower was its star performer. Earnings from the Tauranga-based power company were up 19 per cent from last year, with more electricity being generated and higher retail prices.

No new investments were made during the six months, but the company says it will keep looking at low-cost airports and renewable energy projects.

The 5c per share dividend will be paid on November 26. Infratil's price has been strong this year, and it is now trading around $3.20, after starting the year at $2.70 and falling to a year low of $2.54 in March.

One of its big projects this year has been a plan to develop the Whenuapai Air Force base into a secondary commercial airport for Auckland. The Government has yet to decide if it will allow the plan.

Infratil owns two-thirds of Wellington International Airport.

Air New Zealand's move to low-cost, high-frequency services has served the airport well, with an 8 per cent jump in domestic passenger numbers and a 33 per cent leap in international traffic.

Infratil's Wellington Airport earnings rose 59 per cent to $13.6 million. Problems with Infratil's investment in Prestwick International Airport near Glasgow have continued, with the amount of freight shifted through the airport still falling.

Despite a 17 per cent jump in passenger numbers, Prestwick earnings for the six months to September 30 were down from £3 million ($8 million) to £2.2 million.

Infratil had to lend the airport $40.5 million, which it used to repay bank loans.

Infratil plans to increase retail space at the airport, which is a major hub for low-cost airline Ryanair, by 20 per cent. As that airline expands rapidly, more and more passengers use the airport.