Infratil profit falls by half

By Phil Boeyen, ShareChat Business News Editor

Thursday 17th May 2001

Infrastructure and utilities investor, Infratil (NZSE: IFT), has posted a 50% drop in full-year profit because of lower realisation gains, higher interest and lower dividend income.

For the year ended March the company made a profit of $16.5 million compared with $34.2 million the previous year.

Infratil says realisation gains vary from year to year depending on the particular timing and scale of sales, while the higher interest costs relate to investments that have occurred over the last 18 months.

It says dividend income has fallen due to the sale from higher yielding investments, principally CentralPower, and more growth orientated reinvestment.

Total dividends from investments, excluding Wellington International Airport, were $18.2 million compared to $23 million last year.

Direct interest costs increased to $13 million from $9.4 million previously, mainly relating to $150.6 million Infrastructure Bonds on issue.

Interest costs consolidated from WIAL and Glasgow Prestwick were $11 million compared to $6.6 million previously.

Net gains from investment realisation and revaluations of fell by around half to $11.6 million.

In the previous year Infratil sold most of its CentralPower investment, while this year it gained from the sale of residual CentralPower and most of its Powerco (NZSE: PWC) shares but incurred losses on the sale of shares in Natural Gas Corporation (NZSE: NCH) and writing down to market its residual NGC holding.

At the end of March the company had equity of $223.5 million and total assets of $613.2 million, including the consolidation of WIAL and Glasgow Prestwick.

A final dividend of 3 cents per share and a further special dividend of 2.25 cents per share, both fully imputed, will be paid next month.

Infratil currently has a 67% stake in Wellington International Airport, 67% of Glasgow Prestwick International Airport, 24.6% of Port of Tauranga (NZSE: POT), 26.4% of TrustPower (NZSE: TPW) and 7.2% of Tranz Rail (NZSE: TRH).

The company, whose full name is Infrastructure and Utilities New Zealand Limited, says it intends changing its name officially to Infratil following the takeover of the Australian firm with the same name.

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