Infratil's underlying half-year to September earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf) rose by 19%, or by $54.5 million, a year ago to $338.8 million, while its net surplus rose by 47.4%, from last year's's $39.7 million to $58.5 million.
Forsyth Barr broker Suzanne Kinnaird said overall it was a ''strong result'' for Infratil.
''Most of its businesses are performing very well, and others that have been struggling, such as Perth Energy, are showing a turnaround,'' she said.
Infratil chief executive Marko Bogoievski said the growth businesses which had been added over recent years, Canberra Data Centres, Longroad Energy, Tilt Renewables and RetireAustralia, jointly contributed $158.8 million to ebitdaf, up from $80.5 million for the same period last year.
He said ebitdaf guidance for the full year had been lifted to a range of $580 million-$620 million, compared with last year's $525.8 million.
Infratil shares were unchanged on $3.53 following the announcement, being up almost 10% on a year ago. They closed down 4.5c at $3.485.
While Infratil declared a 6.25c dividend, up .25c from a year ago, Mrs Kinnaird thought it may have paid a further special dividend.
''[But] given the impending Tilt Renewables equity raising, it is no real surprise Infratil is holding on to the cash,'' she said.
Net debt of Infratil and wholly owned subsidiaries as at September was $916.4 million, up from $779.7 million as at March this year, Mr Bogoievski said.
Infrastructure Bonds mature on November 15 which Infratil has pre-funded through the issue of a total of $246.1 million of 4.75% p.a. and 4.85% p.a. coupon bonds which mature in 2025 and 2028 respectively.
On September 30, 2018 Infratil had $319 million of undrawn bank facilities.
Over the period, $302 million was invested, Mr Bogoievski said.
There was $188 million into Infratil's energy businesses, $58 million into transport, $21 million as Infratil's share of Canberra Data Centre's investment into its new data centre, and $35 million through Infratil's social infrastructure businesses and other investments.
The investment now occurring will underpin Infratil's future earnings and value growth, he said.
The Wellington-based investor benefited from good first-half performances from some of its newer assets, while it looks to exit some older, or non-performing investments, including Perth Energy, NZ Bus and student accommodation in Canberra, BusinessDesk reported.
The strongest improvement was from the Longroad Energy solar and wind developer in the US. Infratil's shares in that business contributed $51 million in the period, from almost $6 million of cost a year earlier, mostly from the sale of the developer's 250megawatt Phoebe solar project in Texas.
Perth Energy returned to profit with a $25.2 million contribution, while earnings were also higher for Tilt, Wellington Airport, and Canberra Data Centres, BusinessDesk said.
Trustpower's $129.7 million contribution was ahead of expectations but down from abnormally high earnings the year before.
Earnings from NZ Bus were almost $5 million lower, reflecting one-off restructuring and re-contracting costs, Infratil said. It expects to complete a strategic review of the business during the 2019 financial year.
Weaker earnings from the Retire Australia business reflected reduced sales compared with a year earlier and the softer Australian real estate market.
Mr Bogoievski said Infratil's forecast of its operating cash flows indicates likely continuing cash dividend rises, albeit with imputation credits constrained by a rising share of income from Australia and US businesses.
Infratil's earlier stage businesses are providing good earnings contributions and investment opportunities.
Core mature businesses Trustpower and Wellington Airport, kept providing high-quality cash earnings.
Work is under way at several of the other businesses to determine their long-term role in the Infratil portfolio. Overall, Infratil is well resourced and well positioned to progress its growth initiatives and to continue to deliver value and earning gains for its shareholders, Mr Bogoievski said.
- Additional reporting by BusinessDesk
