Archive | Infratil

Published 16 October 2012

Infratil Ltd has registered the prospectus for a new 6-year unsecured, unsubordinated infrastructure bond offer after telling holders of its 2012 series that those bonds won’t be converted to shares.

Holders of the existing bonds can redeem them for cash or exchange them for the new bonds.

Infratil has opened a public offer of $25 million of bonds, with the ability to accept up to $50 million of oversubscriptions. Exchange bonds will be in addition to that.

The old bonds mature on 15 November. The new bonds carry a coupon of 6.85%/year and mature on the same day in 2018.

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Attribution: Company release, prospectus, story written by Bob Dey for the Bob Dey Property Report.

Published 8 November 2011

Infratil Ltd opened a 6-year 8% infrastructure bonds issue yesterday, offering up to $25 million with the option to accept oversubscriptions to $50 million.

That part of the offer is open to all investors in New Zealand. Under a second part, Infratil is offering holders of its infrastructure bonds maturing next Tuesday, 15 November, the opportunity to exchange all or some of their 2011 bonds for the new ones.

Applications in the public pool will be processed on a first-come first-served basis until Infratil chooses to close the issue or the issue is filled.

Offer managers are Forsyth Barr, ANZ National Bank, First NZ Capital and Westpac Banking Corp. The bonds will be listed on the NZX.

Link: Infratil bonds

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

Published 18 May 2011

Infratil Ltd has picked up $61 million of asset revaluations and $55 million of earnings already from its $210 million investment in Shell NZ Ltd’s distribution & retail businesses in March 2010.

Infratil and the Guardians of NZ Superannuation set up a 50:50 consortium to buy the Shell businesses for $696.5 million, plus an adjustment for actual net working capital. Infratil’s $210 million figure is its holding cost. The consortium traded initially under the name Greenstone Energy Ltd, but changed that to Z Energy Ltd last week.

The Z Energy gains were a highlight of Infratil’s results for the March year, released yesterday.

The company said it increased ebitdaf – earnings before interest, tax, depreciation, amortisation, realisations & impairments, and fair value movements of financial instruments – by 27% to $460 million. Operating earnings rose 92% to $173 million, the net parent company surplus by 122% to $65 million. Parent company comprehensive income was up 305% to $118 million, at 19.6c/share. The company will pay a fully imputed 4.25c/share final dividend on 17 June, up 13%.

Operating revenue was up 10.5% to just over $2 billion. Net operating cashflow increased by 36% to $179 million. Infratil’s capital & investment spending of $475 million was up 146% (not including Z Energy’s own capital spending of $29 million).

The company said the last year was “perhaps Infratil’s most successful with regards to earnings, value growth and investment in future value creation. Supporting these outcomes was comprehensive liability & risk management and the unheralded but crucial strengthening of the management team”. It said the Shell acquisition was the standout event, returning $116 million for the year from earnings & revaluations. “More importantly, the Z Energy team has developed a comprehensive strategy to grow the business through investment in its distribution, logistics & marketing capability. “The other highlight was the $55 million earnings contribution from Infratil Energy Australia. Given that Infratil formed this company as a start-up several years ago, it is gratifying to see the returns now resulting from the capital & effort which have been committed.” Want to comment? Go to the forum.

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

Published 19 May 2010

Infratil Ltd said yesterday it had delivered on its goals for the March 2010 financial year – to maintain earnings, improve financial flexibility, exit assets which represented a poor fit with investment criteria, and sustain the investment programme necessary to drive long-term returns. The listed infrastructure investor:

increased ebitdaf (earnings before interest, taxes, depreciation, amortisation & revaluation of financial derivatives) by $6 million to $363 millionreduced the debt of the parent company & wholly owned subsidiaries by $382 million to $830 millionrealised $392 million through a divestment programmemaintained capital development & internal capex, with $193 million committed. After the financial year a further $210 million was invested in the acquisition of a 50% interest in Shell’s New Zealand fuels processing, distribution & retailing activities.

Infratil increased operating revenue by 5.9% to $1.84 billion, and operating earnings by 15.4% to $90 million. It made a $68 million net loss ($8 million gain last year) on revaluation of financial derivatives, but an $84 million net gain on investment realisations (a $179 million impairment writedown last year). The bottom line was a $29 million net surplus for the parent company, compared to a $191 million loss last year.

Infratil will pay a fully imputed final dividend of 3.75c/share on 25 June.

The company said TrustPower & Wellington Airport delivered strong returns, Infratil Energy Australia & NZ Bus had satisfactory outcomes given the impact of negative one-off items in both businesses, and Infratil Airports Europe performed credibly in very difficult market conditions. Outlook & priorities

Infratil has projected that ebitdaf will increase to between $390-430 million in the March 2011 year, based on a normal range of generation for TrustPower and the Shell business net surplus being similar to last year’s, measured on a current cost basis. Work is under way to assess a bond issue for Aotea Energy (the ultimate holding company of the Shell operating business) to extend that company’s debt maturity profile. Infratil will also undertake preparations to roll the parent-company infrastructure bonds, which mature in 2011. On the broader outlook, it said: “The infrastructure sectors in which Infratil operates have largely come through the financial crisis & economic downturn in good shape, but profound changes may be on the horizon. Society continues to want better infrastructure, but governments have less capacity to pay for it. “It is likely to mean governments focusing more on outcomes and being willing to partner with private providers. In New Zealand, progress in these directions is just starting, but in Australia there is a track record of sourcing private provision of public facilities. New Zealanders remain wary of private ownership of infrastructure, but Infratil’s history of partnerships with public bodies, councils & community trusts shows how good relationships can be developed for the benefit of communities & investors.”

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.