Opportunity knocks for Infratil

Marko Bogoievski predicts there will be investment opportunities for the company. Photo / Greg Bowker

Infratil chief executive Marko Bogoievski predicts the exit of some companies from New Zealand will create opportunities for his firm.

The utilities' investor is hoping to quit one of its own Australian interests, but he says the investment outflow is likely to go the other way as firms across the Tasman consolidate in their own patch.

"I'm personally quite concerned about this hollowing out of New Zealand but it actually presents quite good opportunities for local investors, like us."

Bogoievski joined Infratil in March last year and has been at the helm for nearly a year, while Lloyd Morrison is being treated for leukaemia.

On Friday, Auckland Airport's board approved Bogoievski's appointment as alternate director for Morrison, adding that Morrison was making good progress with his recovery and he expected to be back contributing later in the year.

Speaking before that appointment, Bogoievski said the need to reshape Infratil's capital position, refinance bank debt and sell assets in the 2008-9 year had given him a deep immersion in how the business ran, making the transition from chief operating officer to chief executive fairly seamless.

For the year to March 31, Infratil posted a full-year loss of $112 million, suffering a $179 million write-down on listed investments during the year.

The sustained share price fall of one of those investments, Brisbane-based Energy Developments, resulted in Infratil writing it down $113.7 million.

Bogoievski said the company had some "execution issues" over its small-scale electricity from landfill gas and coal seam methane projects and Infratil's 32 per cent stake with a book value of $73.3 million was for sale.

"It has created quite a lot of interest from trade and private equity players. In these sort of markets it's very hard to say where that all ends up. Whether those parties end up making unconditional bids I don't know but I expect we'll find out in the next four to six weeks."

Infratil has sold its Auckland ferry business, some bus terminal land in Auckland and next month is likely to realise $64 million for the sale of Lubeck Airport through an agreement with the local authority in the German city.

The company was still investing, and was most interested in energy although being wary of any further financial shocks.

"Our posture on capital markets is cautious, in our case we need enough flexibility to be comfortable to survive another test of financial markets but also have enough firepower to turn up at the right price. We're still investing quite strongly but anything we're investing in would have to survive that retest."

Last month, Infratil outlined a sombre outlook. Operating income last year was up 13 per cent to $356 million, and in March was projected to increase this year by between 5 per cent and 12 per cent.

The company said then it was likely that the outcome would be closer to the lower end of that forecast range.

Infratil has a 50.5 per cent stake in TrustPower, its star performer, which in the year to March achieved a 7 per cent rise in full-year net profit, to $105.1 million. In the first three months of the current year, it has gained 6000 customers and is generating 8 per cent more power than in the same period last year, a time of low output.

Competition was intense for customers, Bogoievski said.

'The temperature been turned up - retail is where there is going to be where the action is in future."

Infratil shares closed at $1.70 on the NZX yesterday.

* Marko Bogoievski

Aged 46.

Stepped in as Infratil chief executive in March last year.

Chief financial officer at Telecom, 2000-07.

Held a number of senior financial, operational and sales roles in Lion Nathan, Ansett, Elders Financial Group and PricewaterhouseCoopers.