Interim results for the period ended September 30, 2021

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Nov 12, 2021 8:30 AM


Infratil Limited today announced a parent company net surplus from continuing operations of $ 1.086 billion, for the six-month period ended September 30, 2021, which is the largest net surplus that Infratil has recorded in 27 years of operations. existence.

Infratil chief executive Jason Boyes said financial performance was supported by the sale of Tilt Renewables, which contributed to a gain of $ 1.015 billion, while comprehensive income showed the company was on record. strong performance and was resilient despite the persistent challenges posed by the Covid pandemic.

Proportionate EBITDAF was $ 253.6 million, an increase of 28.2% from $ 197.9 million for the same period a year earlier, reflecting the good performance of investments by Infratile. Proportionate EBITDAF for the year ended March 31, 2022 is expected to be between $ 500-530 million (previous forecast was $ 505-550 million), with the narrower range mainly reflecting the addition of Gurin Energy and Kao Data to the Group, as well as the estimated full-year impact of Covid-19 on Wellington airport and Infratil’s diagnostic imaging activities.

“It is nice to see the results and the positive outlook for the portfolio assets, despite all the challenges that have affected companies over the past six months.

“In terms of shareholder returns, we will pay an interim dividend of 6.5 cents per share, an increase of 4% over the comparative period. The dividend will also be fully charged. The Infratil share price is also increased from $ 7.13 to $ 7.96 during the period, with an after-tax return to shareholders over the past five years of 26.0% and 19.0% over the full 27.5 years since the Infratil listing. ”

Mr Boyes said that Infratil’s profit for the period and the financial circumstances could have allowed for a special dividend, but as stated in the annual report of March 31, 2021, we do not consider special dividends to be the best use of funds. . However, we expect dividends to grow further in line with cash profits from CDC data centers, Vodafone and our diagnostic imaging business.

“This approach provides our shareholders with a solid and sustainably growing dividend and allows us to continue to prudently and productively deploy capital in ideas that matter.

“Over the past six months, we have deployed $ 833.8 million in digital infrastructure, global renewable energy and social infrastructure, including our investment of $ 313.6 million in Pacific Radiology. Along with our investment last year in Qscan and our most recent purchase of a stake in Auckland Radiology Group, we expect to generate significant synergies and reinvestment opportunities in our healthcare business in the years to come.

“In September, we announced the creation of Singapore-based Gurin Energy to expand renewable energy production in Asia with a commitment of $ 233 million. This means that we are now active in renewables in Australasia, North America, Europe and Asia. The group has built 3,530 MW of solar, wind and hydroelectric power generation capacity and we expect to more than double this capacity over the next decade.

“CDC Data Centers is dramatically increasing its capacity with more than A $ 1 billion in investment across four sites, including two new facilities in Auckland. When we acquired 48% of CDC Data Centers in 2017 for $ 411.5 million, the company had 39 MW of capacity and $ 50.4 million. The most recent independent valuation of CDC data centers as of June 30, 2021 estimated Infratil’s investment to be between A $ 2.3 billion and $ 2.5 billion. After this half year, we announced the purchase of 40% of the London Kao Data data center business. We see significant growth potential for this sector.

“The market continues to value assets in the digital infrastructure and renewable energy sectors at significant premiums over Infratil’s book values. We expect a growing awareness that healthcare assets are also becoming the next set of high-end infrastructure assets.

Upon completion of the Tilt Renewables divestiture, Infratil fully repaid its used bank credit facilities of $ 840 million, leaving a net cash balance of over $ 1.1 billion. Infratil’s indebtedness has been reduced to 4.6% of Infratil’s total capital with total available cash of approximately $ 2 billion. Infratil also took this opportunity to fully refinance and extend all of its banking facilities with a range of maturity dates until July 2026.

Across the portfolio over the period:

• CDC Data Centers continued to advance the 4 facilities it has under construction (totaling 70 MW of capacity), while also adding 150 MW of additional capacity in Melbourne to its development pipeline.
• Vodafone’s profitability program creates leeway to reinvest and helps improve margins, while product simplification reduces service costs and simplifies the customer experience.
• Trustpower announced the conditional sale of its retail operations to Mercury Energy for $ 441 million, while its generation operations generated strong results, primarily driven by higher production volumes and wholesale prices.
• Longroad Energy completed construction of an additional 530 MW of large-scale solar power and began construction of a 26 MW distributed generation project in Maine.
• Galileo Green Energy continued to expand its business development activities, which made it possible to expand its pipeline during the semester to 2.1 GW of dedicated projects.
• RetireAustralia had a good semester with 296 villa and apartment sales during the period and the overall village occupancy rate increased to 91%. After stopping development for a period last year, RetireAustralia now has construction underway at four sites.
• As essential healthcare providers, Qscan and Pacific Radiology continued to provide critical imaging services despite lockdowns in New Zealand and Australia. Qscan opened three new PET-CT clinics in fiscal 2022, while Pacific Radiology has a new specially designed imaging facility under construction in Frankton, Queenstown.

Investor briefing

There will be a briefing for institutional investors, analysts and the media starting at 10:00 am.
A webcast of the presentation will be available live at:

All inquiries should be addressed to:
Mark Flesher, Investor Relations
[email protected]

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