Strong structure keeps Infratil positive

Airport and energy company Infratil, poised to buy Germany's Lubeck Airport, says a 24 per cent rise in underlying half-year profit leaves it well-positioned for more investments.

While the company's half-year net profit was down 50 per cent due to just $240,000 in investment realisations compared with $17.78 million a year ago, chairman David Newman said underlying net profit was $14.66 million, up from $11.85 million.

Newman said Infratil's strong capital structure and balance sheet gave it "much capacity for further investments if we find them".

Feeding into yesterday's result were an "exceptional" performance from TrustPower which contributed $17.8 million in earnings. Managing director Lloyd Morrison said TrustPower was looking at potential wind and hydro generation projects worth more than a billion dollars.

Wellington Airport contributed $12.7 million during the half despite flat passenger growth thanks to good results in other areas.

Infratil shares fell 3c to $3.69 yesterday.

Newman said the company's European airports business was "starting to turn around nicely" although overall earnings were down to $2.1 million from $2.2 million a year ago.

Glasgow Prestwick Airport's earnings were up 38 per cent with a 15 per cent increase in passenger numbers helping offset the continuing decline in freight volumes.

Morrison said new Infratil Airports Europe chief executive Steve Fitzgerald had a strong management team which could quickly take control of Lubeck Airport if the new Infratil offer succeeded.

On Monday, Lubeck's Parliament gave Infratil's bid the green light, leaving just one more approval before the deal goes unconditional.

Morrison said Infratil's $47 million initial investment in Kent International Airport in August would be followed by further expenditure. "Hopefully it will be a growth asset for many, many years and we'll be happy spending money on it to assist that growth."

Infratil's Victoria Energy electricity and gas retailing business had grown well in the last six months, and the company had extended its stake in Energy Developments.