Announcement
HALFYR: IFT: Interim results for the period ended 30 September 2020
08:31am
IFT
12/11/2020 08:31
HALFYR
PRICE SENSITIVE
REL: 0831 HRS Infratil Limited
HALFYR: IFT: Interim results for the period ended 30 September 2020
Infratil Limited today announced its half-year results for the six months
ended 30 September 2020, confirming a Net Parent Surplus from Continuing
Operations of $27.8 million compared with $56.4 million for the prior year.
Proportionate EBITDAF was up $25.4 million (+12.4%) to $229.5 million
reflecting strong performance from CDC Data Centres and significant
contributions from Vodafone New Zealand and Trustpower. Proportionate
EBITDAF for the year to 31 March 2021 is forecast to be between $430 million
and $470 million, including an estimated $80 million reduction caused by
Covid-19 related restrictions. Proportionate EBITDAF was $446.0 million the
previous year.
The results for the period were impacted by portfolio changes including the
acquisition of Vodafone
New Zealand in 2019, and the sale of Perth Energy, NZ Bus, and the ANU
Student Accommodation business in 2019. The results also reflect Tilt
Renewables' December 2019 sale of the Snowtown 2 wind farm.
The period illustrated the benefits of Infratil's diversification, where the
progress at CDC Data Centres and the renewable generation projects of Tilt
Renewables and Longroad Energy more than balanced the impact of the Covid-19
crisis on businesses such as Wellington Airport and Vodafone New Zealand.
Reflecting the overall good financial outcome and Infratil's solid funding
position the dividend for the period will be 6.25 cps cash and 1.75 cps
imputation credits. Between 31 March 2020 and 11 November 2020 the share
price has risen from $3.91 to $5.40.
The $300 million equity raise undertaken in June, and receipts from
businesses, saw net debt decline
$385.0 million and gearing reduce to 28% of Infratil's total capital as at 30
September.
Infratil's strong record of shareholder returns is based on owning
infrastructure businesses with opportunities to invest to take advantage of
long-term demand growth. On that basis it was positive to see $488.9 million
of proportionate investment over the period; including $322 million into
renewable generation and
$122 million into digital infrastructure.
Reflecting its remarkable progress, the value of Infratil's holding in CDC
Data Centres rose $324 million over the six months. Tilt Renewables provided
cash returns of $180 million while continuing to advance renewable generation
developments in both Australia and New Zealand. Longroad Energy continued
work on
$1.3 billion of generation projects in the USA and provided Infratil with
$19.1 million of capital return. Vodafone New Zealand materially advanced its
plans to simplify its business and improve its customers' experience, but
also saw earnings reduce by $29 million due to Covid-19.
At the height of travel restrictions in April, 6,000 travellers used
Wellington Airport, which had recovered to 350,000 for the month of October.
RetireAustralia delivered the excellent result of keeping all its residents
and staff safe and well protected.
In October, Infratil announced a conditional agreement to acquire up to 60%
of Australian diagnostic imaging business Qscan. This important new
initiative for Infratil is awaiting Foreign Investment Review Board approval
in Australia.
In conjunction with the interim report, Infratil has also published a Climate
Change Position Statement committing to the goal of reducing greenhouse gases
and providing transparency about policies, goals, costs and risks.
Notable achievements during the period:
o Longroad Energy commenced construction on three solar generation projects
amounting to 840MW;
o Tilt Renewables completed construction of the 336MW Dundonnell wind farm in
Victoria, Australia and made significant progress on the 133MW Waipipi wind
farm in Taranaki. 865,000 hours of work was undertaken at the two
construction sites without a single lost time injury;
o RetireAustralia kept its residents and staff safe and protected from
Covid-19;
o CDC Data Centres commissioned 28MW of data centre capacity at Eastern Creek
in Sydney;
o CDC Data Centres also started construction of two 10MW data centres in
Auckland, and progressed further expansion plans in Australia;
o Vodafone New Zealand progressed its investment in 5th generation mobile
network infrastructure and upgraded its international fibre links;
o Vodafone New Zealand's simplification programme saw 1,500 products retired
or improved. In the most recent period 34% more customer requests were dealt
with first time, while complaints were down 53%;
o Wellington Airport plunged to 1% of normal activity in April. By October
domestic traffic had recovered to over 70% of normal levels reflecting the
relaxation of travel restrictions. International traffic awaits new border
rules;
o Infratil Infrastructure Property opened its $70 million hotel, retail, and
car park project in Auckland's Wynyard Quarter, and agreed to the sale of the
Kilbirnie bus depot for $35 million;
o Infratil increased its commitment to Clearvision Ventures. One of its
investments, Chargepoint, owner of the world's largest electric vehicle
charging network, has indicated it plans to list on the NYSE;
o Infratil raised $300 million via an equity issue;
o Infratil maintained its dividend, with an interim dividend of 6.25 cps to
be paid on 15 December;
o In October Infratil announced the acquisition of up to 60% of Australian
diagnostic imaging company Qscan. A new sector with strong growth potential;
and
o Infratil released its Climate Change Position Statement.
Over the decade to 30 September 2020 Infratil has:
o Provided an after-tax compound return to shareholders of 17.8% p.a.;
o Invested over $6 billion in key growth sectors and next generation
infrastructure; and
o Grown proportionate EBITDAF from $300 million to the FY2021 forecast range
of $430 million to $470 million.
Investor briefing
There will be a briefing for institutional investors, analysts and media
commencing at 10.00am at the InterContinental Hotel, Featherston Room, 2 Grey
Street, Wellington. The briefing and Q&A session will also be available by
webcast and teleconference.
A webcast of the presentation will be available live at:
https://edge.media-server.com/mmc/p/c5imos3g
Any enquiries should be directed to:
Mark Flesher, Investor Relations
mark.flesher@infratil.com
End CA:00363103 For:IFT Type:HALFYR Time:2020-11-12 08:31:20
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