Ann: HALFYR: IFT: Infratil Half Year Results to 30 September 2015

• Release Date: 11/11/15 09:04
• Summary: HALFYR: IFT: Infratil Half Year Results to 30 September 2015
• Price Sensitive: No
• Download Document  3.79KB

					IFT
11/11/2015 09:04
HALFYR
PRICE SENSITIVE
REL: 0904 HRS Infratil Limited

HALFYR: IFT: Infratil Half Year Results to 30 September 2015

Infratil Limited today announced the results for the six months ended 30
September 2015. The reported results reflected strong operating contributions
across the group and the gain on sale of the residual 20% stake in Z Energy.

Net parent surplus for the period was $435 million compared with $399 million
in the same period last year:

o 78 cents per share up from 71 cents in the prior period.
o The sale Infratil's 20% interest in Z Energy realised $480 million and
provided a gain on book value of $392 million.

Consolidated EBITDAF  from continuing operations was $271 million, up 14% on
the same period last year:

o $24 million increased contribution from Metlifecare and RetireAustralia in
New Zealand and Australia.
o $11 million increased contribution from Trustpower.
o Full year EBITDAF guidance for FY16 confirmed at $500-$530 million (last
year actual $452 million).
o EBITDAF is a non-GAAP measure which shows management's view of underlying
business performance. It shows operating earnings before deducting interest,
tax, depreciation and amortisation and before making any adjustments for fair
value movements, realisations and impairments.

Infratil's balance sheet and financial leverage continue to improve, with
gearing falling to 15% following recent portfolio sales. Cash on hand
(including $480 million for the sale of Z Energy) has risen to $755 million
and creates significant capital management and investment optionality.
Confidence around future internal capital expenditure and external
origination remains high.

$55 million of capital was invested over the period compared to $196 million
in the same period last year:

o An increase in internal capital spending is anticipated in the second half
of the year.
o Significant acquisition initiatives are under active development.

Net debt of Infratil and wholly owned subsidiaries fell to $308 million from
$761 million at the start of the period (15% of total capitalisation from
30%):

o A $100 million issue of 5.25% p.a. bonds maturing September 2023 was opened
after balance date and has been oversubscribed.
o $153 million of 8.5% p.a. bonds mature in November 2015.

The interim dividend has been increased to 5.25 cents per share from 4.50
cents last year. The dividend will be paid on 15 December 2015 to
shareholders of record on 27 November 2015. The DRP remains suspended for
this dividend.

For the six-month period under review Infratil's operating earnings were
excellent and asset disposals delivered significant value. The challenge now
is to continue to provide earnings and value growth by deploying Infratil's
substantial available capital.

While opportunities for new investments are under development, achieving the
best outcome requires a patient long-term perspective. This naturally results
in some uncertainty, but shareholders can be certain that this will be
resolved in due course. Either by new investments being undertaken or by
capital being returned.

A significant pipeline of wind and renewable developments is being progressed
in Australia through Trustpower. The recent review of the renewable energy
target regime has ended positively and created confidence around further
investment in renewables in Australia. One potential investment which has
been mentioned in public is Pacific Hydro. This company owns and develops
renewable generation in Australia and South America and its breadth of
generation assets and development pipeline is diversity of generation assets
and jurisdictions makes it well suited to Infratil's active management
capability. A resolution of the process is expected in December.

Marko Bogoievski
Chief Executive Officer
End CA:00273179 For:IFT    Type:HALFYR     Time:2015-11-11 09:04:07