BBI 0.00% $3.98 babcock & brown infrastructure group

my analysis of today's announcements, page-67

  1. 4,510 Posts.
    The problem with the free cashflow into the corporate entity is that (as JK said in the briefing) some of the cashflow is being 'swept' at the asset level, ie it is not being released up to the corporate level. Whilst that helps keep debt at the asset level going down rather than up, it is a fat lot of use in the short term for debt at the corporate level.

    I do consider that there will be higher interest charges, but also assuming DBCT (which fortunately is a 100% owned asset) is not one of the assets getting its operating cashflow swept, well surely the higher throughput at DBCT and also that Phase 7 expansion is completely finished, well this must mean a significant increase in cashflow from that particular asset and this (you would hope) would boost the $99M in FY2010.

    This must be helping at present at least. It won't be enough to save them and of course you do without this cashflow if you sell DBCT.
 
watchlist Created with Sketch. Add BBI (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.