Infratil first-half earnings improved by Z Energy sale

Infratil sold its remaining 20 percent stake in Z Energy in October, booking a profit of $392 million.

Infratil, the investment company managed by Wellington-based investment bank Morrison & Co, posted a 14 percent gain in first-half pretax earnings and affirmed its guidance for full-year growth of as much as 17 percent.

Consolidated earnings before interest, tax, depreciation, amortisation, and fair value movements rose to $271 million in the six months ended Sept. 30, from $242.5 million a year earlier, the Wellington-based company said in a statement. Total income, which includes operating revenue, dividends and earnings from associate companies, increased 7.3 percent to $909.5 million.

The first-half earnings included a $24 million increased contribution from Metlifecare and RetireAustralia in New Zealand and Australia, and an $11 million increased contribution from Trustpower. Infratil confirmed its full-year earnings guidance for the 2016 financial year of $500-$530 million.

Infratil sold its remaining 20 percent stake in Z Energy in October, booking a profit of $392 million. Chief executive Marko Bogoievski said the company now has cash on hand of $755 million and this "creates significant capital management and investment optionality."

First-half net profit rose 5.1 percent to $470.8 million. The company will pay an interim dividend on Dec. 15 of 5.25 cents per share, up from 4.50 cents last year.

Infratil's shares last traded at $3.17, the highest in almost three months, and have gained 13 percent in the past 12 months.

See Infratil's latest investor presentation here: