Source: Radio New Zealand
Infratil chief executive Jason Boyes. Supplied
Infrastructure investor Infratil has reported a strong first half net profit with revenue up more than a third to $2 billion.
It said underlying profit rose 7 percent, despite New Zealand’s economy remaining relatively subdued throughout the period ended in September.
Key numbers for the six months ended September compared with a year ago:
- Net profit $631.5m* vs net loss $206.4m**
- Revenue $1.993b vs $1.482b
- Underlying profit $662.4m vs $68.8m
- Total debt $2.62b vs $2.19b as at 31 March
- Total asset value $19b versus $18.3b
- Interim dividend 7.25 cents a share vs unchanged
- *Reflected sale of Manawa Energy resulting net surplus of $606m
- **Net loss reflected a number of one-time costs and a revaluation gain in the year earlier.
Infratil chief executive Jason Boyes said profit growth was largely driven by United States-based Longroad Energy, Australasia’s CDC data centre business, while capital expenses fell $52m to $1.14b on the year earlier.
“Digital and renewable energy thematics are stronger than ever, with CDC and Longroad building strong earnings momentum on the back of new waves of demand,” Boyes said.
“CDC has recently announced 140 megawatts of contracts and Longroad Energy reached financial close for 925MW of new projects.
“Gurīn Energy in Asia is another investment poised for growth and we’re always scanning for other attractive new growth sectors.”
He said the company was about 58 percent on its way to meeting its $1b divestment target, with sale agreements in place for RetireAustralia, Fortysouth and a legacy property asset. A strategic review of Qscan is also underway.
“Our focus is on simplifying our current portfolio and reinvesting in areas with strong thematic drivers, to position Infratil for continued growth and shareholder returns.”
New Zealand business performance
Despite the weak New Zealand economy, Boyes said Infratil’s New Zealand businesses had been largely resilient.
Wellington Airport reported 4 percent growth in underlying profit with international passengers numbers up 7 percent, while domestic passenger numbers fell 5 percent.
Telecommunications company One NZ, which accounted for about 58 percent of underlying profit, saw revenue rise by $14 million on the year earlier.
“Revenues have lifted through a mix of pricing and service initiatives, including the One Wallet loyalty programme and SpaceX text services – with more than 6 million texts now sent via the exclusive satellite service.”
The RHCNZ Medical Imaging business saw a pick-up in scans, though underlying profit fell on lower margins and cost inflation. However, Boyes said the outlook was more positive for the second half.
“This includes creating a standalone teleradiology service provider that will include staff and assets from Infratil’s Australian diagnostic imaging investment, Qscan, ” he said, adding its Qscan’s underlying profit rose 11 percent, with a positive mix of imaging demand and pricing changes.
Boyes said the company was poised for long-term growth, with its increased investment in Contact Energy expected to generate financial flexibility for the firm.
Underlying profit guidance for the full year ending in March was between $1b and $1.05b on a like-for-like basis, or between $960m to $1b following the sale of RetireAustralia and Fortysouth.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
