Infratil cashes in on solid displays

By ELLEN READ

Infratil has reported a bottom-line profit of $18.26 million for the nine months to December 31, up from $4.98 million in the previous corresponding period.

The infrastructure and utilities investor said good performances by 35 per cent-owned TrustPower and two-thirds-owned Wellington International Airport boosted the bottom line.

The profit for the six months to September 30 was $12.53 million, meaning the third quarter contribution was $6.03 million.

Earnings before interest, tax, depreciation and amortisation (ebitda) rose 25.5 per cent to $48.6 million for the nine months. Ebitda in the six-month result was $29.06 million, giving third quarter ebitda of $19.55 million.

No income was received from 13 per cent-owned Australian company Energy Developments during the nine months. Infratil said that company's new management team was focusing on rejuvenating the core energy activities.

During the period reported Infratil increased its stake in Glasgow Prestwick Airport to 77 per cent from 67 per cent at a cost of $16 million. It has an option to raise this to full ownership.

A 6.3 per cent shareholding in South Port was sold.

In December, the company terminated its foreign currency hedges, having previously hedged against movements in the value of the kiwi against the UK pound and the Australian dollar.

Infratil concluded that shareholders would gain from accepting both the investment and currency exposure, especially given the recent rise in the value of the NZ dollar.

Infratil shares closed unchanged at $2.85 yesterday.

The company's future investments will focus on low-cost airports and renewable energy.

It is involved in plans, with the Waitakere City Council, to develop Whenuapai Air Base as a secondary Auckland regional airport when the Air Force moves out in five years.