Infratil reports $191m full year loss

Infrastructure investor Infratil has reported a full year loss after tax of $191 million, mainly due to non-cash write downs on its assets.

The result compared with a net loss of $2m last year, with the non-cash write downs for the latest year to the end of March amounting to $179m.

Infratil is highlighting its consolidated earnings before interest, tax, depreciation, amortisation and revaluations (ebitdaf) which were up 13 per cent from the previous year to $356m.

Infratil is the 66 per cent owner of Wellington International Airport, half owner of energy generator and retailer TrustPower and it also owns Stagecoach bus company in Auckland. It also has energy investments in Australia and airport interests in Europe, including Prestwick International Airport near Glasgow.

The company's operating surplus - earnings after interest, depreciation and amortisation - dropped to $77m from $88m the year before, Infratil said today.

A fully imputed dividend of 3.75c per share was to be paid, unchanged from last year.

Investment and capital spending amounted to $300m, down from $507m in 2008.

While the disruption to global financial markets made performance assessment difficult, Infratil had not delivered on its primary goal of providing superior risk-adjusted returns to shareholders, chief executive Marko Bogoievski and chairman David Newman said.

Infratil shares lost 29 per cent of their value, including dividends, in the year to the end of March, compared to a 25.4 per cent fall of the NZX gross index over the same period.

"Despite the share market returns, Infratil's financial and operational performance was in the main, satisfactory."

A conservative approach to balance sheet management meant sufficient capital and liquidity was available to continue to fund long term investment programmes, Bogoievski and Newman said.

Infratil's core businesses - TrustPower, Wellington Airport, and Infratil Energy Australia improved earnings (ebitdaf) over the previous year.

"Only the European Airports were really hurt by the recession, while two major investments, Auckland Airport and Energy Developments saw their prices significantly impacted by a falling share market," they said.

"The company has come through this period of financial uncertainty with sufficient capital and liquidity to fund its investment activities and take advantage of future opportunities."

Infratil's objective was to maximise financial flexibility and to avoid the need to take expedient steps which could harm shareholder value.

Work continued on new investment opportunities, with the aim of positioning Infratil for future growth without unduly committing scarce capital in the short term, Bogoievski and Newman said.

"While we have not yet seen distressed sales of quality infrastructure assets in Infratil's sectors, opportunities will emerge, not least because both New Zealand and Australia will require significant private capital to finance planned new social and economic infrastructure."

Shares in Infratil were down 5c, or 2.9 per cent, to $1.65 around noon.

- NZPA