Infratil net profit down

Utilities investor Infratil has reported higher operating profit in the June quarter, but net profit was down as the company held on to investments.

Chairman David Newman told shareholders at the company's annual meeting yesterday that the operating profit after tax and before investment realisations more than doubled to $6.49 million.

But where $9.27 million of investment realisation gains boosted net profit to $12.3 million last year, this year there were no realisations to help the bottom line leaving net profit at $6.49 million.

Newman said each of Infratil's major investments achieved good results during the year.

TrustPower - 35 per cent owned by Infratil - increased earnings 55 per cent compared with the same period last year.

TrustPower's increasing sharemarket value added 40c to the asset backing of each Infratil share, he said.

Two thirds-owned Wellington Airport's contribution to Infratil was up 22 per cent.

Europe-based Infratil Airport Holdings, which owns Glasgow Prestwick Airport, saw operating earnings rise 66 per cent to 1.01 million ($2.6 million).

Infratil said it would roll over its $50 million of long-term infrastructure bonds that mature in November.

After the end of the quarter, Wellington Airport announced plans for a $76 million upgrade.

Newman said there had been some media coverage suggesting that this investment was over-done and would hurt air traffic.

"Infratil strongly supports the Wellington Airport team and believes that their vision for the airport and Wellington will be good for air travel and the city," he said.

Infratil shares closed 2c down on $3.97, having traded from $2.94 to $4.04 over the past year.

- NZPA