Infratil returns to profit - earnings up 25pc

Infratil chief executive Marko Bogoievski Photo / Greg Bowker

Utility investor Infratil says the performance of its Greenstone Energy business - the owner of Shell - has exceeded expectations.

Infratil has this morning reported a 25 per cent jump in earnings to $258 million in the six months to September 30, compared to the same period last year.

It turned round a $31 million loss to a net surplus of $16 million compared to last year.

The company said Infratil Energy Australia had also performed well although its other businesses, including TrustPower performed "satisfactorily."

Infratil and the NZ Superannuation Fund bought the downstream assets of Shell, including its petrol station in April with each paying $210 million.

"While the objective was a 'business as usual first' year, to date it has been better than that," Infratil said.

It had achieved an overall volume increase relative to the same period last year of approximately 4 per cent with commercial fuel sales being slightly stronger than sales to retail customers.

The net income contribution to Infratil over this period of $13 million reflects Greenstone's depreciation and external interest costs and tax.

Infratil said that with recent tax increases mean that more of the standard pump price now goes as tax than to pay for oil and its processing.

That left approximately 8 per cent of the pump price for distribution and marketing which occured in a highly competitive market.

The company said New Zealand's emerging economic recovery and Australia's sustained growth were positive for Infratil's businesses while financial market uncertainty and change means attractive investment opportunities continue to become available.