Infratil posts first-half net loss, narrows guidance
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The news: New Zealand infrastructure investor Infratil has revised down its full-year guidance after swinging to a first-half net loss.
The numbers: Infratil's proportionate operational EBITDAF for the first half of the year totalled NZD506 million ($459 million), a 25% increase year on year.
However, it recorded a net loss of NZD212.2 million for the period, down from a net surplus of NZD1.1 billion in the previous period.
The prior year period included a NZD1.1 billion accounting revaluation of Infratil's stake in Auckland-based telco One NZ. The six months to September 2024 were impacted by elevated amortisation relating to the One NZ transaction and NZD63 million in negative foreign exchange and derivative revaluations.
Infratil lowered its full-year proportionate operational EBITDAF guidance range from NZD962 million to NZD1.012 billion, to NZD960 million to NZD1 billion.
The revision incorporated lower earnings expectations at its Longroad Energy and Diagnostic Imaging businesses.
Infratil also expects its renewable development companies to report a full-year proportionate operational EBITDAF loss of between NZD65 million and NZD75 million, compared to a gain of NZD80 million to NZD90 million previously guided.
The company will pay shareholders an interim dividend of 7.25 cents per share, a 3.6% increase compared to last year.
The context: Infratil said its operational EBITDAF growth was an "impressive accomplishment" amid a "testing domestic landscape and global volatility".
Chief executive Jason Boyes said that with geopolitical tensions, persistent inflation and high living costs shaping the investment landscape, Infratil will continue a disciplined approach to capital allocation and its focus on capturing long-term value across investments.
Elsewhere, Infratil noted that Contact Energy's proposed acquisition of its 51% owned electricity company Manawa Energy will provide "significant benefits" to Infratil should it proceed.
Infratil will receive around NZD186 million in gross cash proceeds and will hold an estimated 9.5% stake in Contact Energy upon completion.
The source: ASX announcement
