IFT - Infratil

[Toddy]

A good solid result.

Wellington Airport revenue UP.
TrustPower revenue UP.
Glasgow on track for good growth. (Ryanair just announced record profits and growth)
POT share price still climbing as IFT sell downs it stake.
Over 7m shares bought back by the company during the period with more to come at the right price.

The warrants must represent good value given the continued growth outlook.


Toddy
Disc: IFTWB, POT, FPH, NOGOC

[kura]

GPIA result not so hot though ! (Further decline freight) We will get interim div (Thank you TPW) overall not too bad.
(Hold IFT, IFTWB)

[Toddy]

GPIA freight volumes steady.
Share price creeping north again on higher volume.
TPW share price has rocketed and IFT own 40%.

Could we be in for a re-rating.

[digger]

Strange the talk habits we get into. This co is my second biggest investments in dollar terms and probable my best ever in precentage terms,yet we posters talk little about it. The co fill my investment rule one that is the directors or shairman must have a big stake.Here that is the case. As with NOG if the chairman or directors total say the co is worth investing in it probable is.
Glasgow will probably take another year to really turn around.
POT why they are selling is beyond me.
Phenuapai an interesting wild card.

[Runswifscissors]

If they want to get talked about more on ST they need to drill a hole in one of their runways and find some oil.

[Toddy]

Whats up with IFT.
Warrants now 84 cents v 60 cents a fortnight ago.

Maybe the market liked the Spanish Coy purchase of Luton Airport at way over the odds.

[kura]

TPW up to $6 ,probably has something to do with it

[Steve]

Out of interest, how do the share buybacks affect the warrants?

Obviously reducing the number of shares will increase the price, which will increase the warrant value. A the shares subject to buyback being cancelled or held as treasury stock?

[kura]

Some have been cancelled in past, think its up to directors discretion. As warrant holder any buy back pleases me no end. (Much preferable than paying out dividends) However the impact of buy back does make any of the valuation type theoretical fomulas (scholes black) nonsence.
NB: Co policy is to pay dividends, only to extent that have imputation credits available.

[Steve]

I recall that a few months ago there was a thread on the value of the warrants when they were first issued.

Given the buybacks, what are your guesstimates on what the warrant price should be now?

Have any of the brokers issued a more recent analysis on the warrants?

[digger]

When the warrants first came out I was all for topping up which i in fact did. To me at 56 cents average they were too cheap ,but some clown had a modle that showed that they were only worth 35 cents,or was it 33 cents. The lowest they got was 44.
In any buy back the warrants gain as they then gain in future % holding,hence value.
See the other week a director sold heads and bought warrants,as per notice.
I still haven't worked out where the recent surge was TPW or Whenuapai expected releace this month.Quess they overran themselves as are coming back to reality.
With Christmas this is the worst month for stock,but Jan is the best on long run averages.

[kura]

Not only did I top up on issue of warrants, but sold my headshares to pay for them, suppose that gives you my opinion of their relative value.

[Toddy]

Whenuapai - still waiting.

What are the politicians debating in the House now days.

IFT have been advertising for airport staff in the New Zealand papers over here in the U.K. recently for GPIA and Wellington.

From what I hear the weather will have to improve a 'lot' before people board for the Capital.

[Placebo]

Toddy: Whenuapai way off the radar screen. MPs occupied giving marriage rights to gays.

In any case, it's not a decision for Parliament (doesn't need legislation). Will be a cabinet paper.

[CAM]

Its a "civil union".....so does that mean you can marry your sister now??

sorry off topic

[Toddy]

Decision day!

Fate of Whenuapai air base still up in the air


12.12.04
by Jonathan Milne


Plans to convert the Whenuapai air base into a second international airport for Auckland will hang in the balance when Cabinet meets tomorrow.

A Cabinet committee agreed last week that Whenuapai's commercial value as an airport would outweigh any strategic significance it held as a national asset.

But ministers remain divided on the next step: agreeing to sell the airforce base to Waikatere City Council, which could in turn contract the Defence Force and Wellington Airport-owner Infratil to manage it.

The solution would allow the airforce to continue using the airfield for the indefinite future, while at the same time allowing Infratil to operate a national and international airport.

Supporters say it would relieve pressure on Auckland's existing international airport at Mangere, and, in particular, on the congested road links leading from the city.

But sources say Finance Minister Michael Cullen is wary of being seen in election year to sell off national assets - even if they are being sold to the local authority.

Ironically, with local MP John Tamihere gone from Cabinet, the airport's biggest champion is Progressives leader Jim Anderton, who left Labour in protest at the privatisation of public assets.

Cabinet's choices are to either immediately commission a detailed proposal of how the airport sale proposal would work, or to put it in the "too-hard" basket till after the election.

- THE HERALD ON SUNDAY

[stephen]

CAM: yes, but you can't shag her.

[Gazza-nz]

Air NZ arn't interested and without their support it's a no goer. They have to stay at AIA because their Star alliance requires them to be at the same port as their other cariers. Secondary ports are for VBA's. Other airlines in the Air NZ group will fall into line.
Pac Blue will not be able to make it work on their own due to the quarantine, customs and immigration requirements.

[kura]

Now the "No Go" decision is out, lets see what happens to shareprice tomorrow. My guess is that impact won't be much.

[Toddy]

Agree Kura, it may even have a positive impact on the shareprice.

IFT and it's share holders were always going to carry the risk for this one on behalf of the Auckland public.

[digger]

Now lets hope IFT does what they should have done in the first place and invest in Hamilton airport. Make Hamilton is the centre of international air freight,the big future earner.

[nelehdine]

No curfew at AIA ... why won't it be used for freight , closer to customers than Hamilton.

Disc: AIA holder

[Toddy]

What the Govt has actually said is that they do not need to make a 'sell' decision on the Whenuapai land just yet due to the Defence Force occupying the site for a number of years to come.
They also said that there is no reason why a deal cannot be struck with the Defence Force to fly commercial planes in and out of Whenuapai.

This 'no decision' was not what IFT wanted but they can work with the offer to enter into discussions with the Defence Force for use of the Airport.

So, the Govt gets to keep its nose clean and IFT gets an opportuity to proceed with it's plans to commercialise Whenuapai.
It will be interesting to read the press over the coming days to see what develops.

Odds 40/60

[Toddy]

This will please the locals - the land could be used for other uses like a 'prison'.

[shasta]

If the Govt/Air NZ stop this from proceeding in any shape, Infratil will simply move on into Eastern Europe and pick up another European airport on the cheap & set up shop, it's what they do best, give them another 12 months and Glasgow will be performing to budget at least.

Infratil is likely to be a $3.75 share within 3 months & am thinking about converting my warrants.

A popular pick in the NZX 2005 comp too!

[digger]

Shasta

Like your logic about IFT moving on and increasing value in other pars of the globe. That part i see reason ,but how do you get to converting the warrents. Surely you must mean sell the warrants and buy heads. Even then the directors are going in the direction of selling heads and buying warrants.
Ift will continue to be a success story. In 3.5 years IFT has gone up 3.5 times. Can't complain about that.

[blackcap]

quote:Originally posted by shasta



Infratil is likely to be a $3.75 share within 3 months & am thinking about converting my warrants.




What the ****, are you mad!!!!

Rather than converting your warrants you can sell them on market now for 70 odd cents each. Then use this 70 cents to buy some shares at 3.35. Saves you 85 cents per share.

[Snow Leopard]

Decided that IFT was a good stock for 2005 with good prospects in the long term and less potential downside than some. So after having chosen it as one of my five picks for the competition I have also dipped my paw into the shareholder pool and bought an initial holding.

Now, about that $3-75 within 3months... [^]

[Toddy]

PT

Welcome aboard.
The B warrants represent great value at 80 odd cents with a strike price of $3.50 in June 2009.

[digger]

IFT is my best investment ever,GEN is my worst. Strange how suddenly in the last two months the warrants are now seen at 80 odd cents as great value. I bought 180000 at 54 cents shortly after listing and at the time we had top advise saying they should be only worth 35 cents.
This co needlessly drifted back after the Whenuapai fiasco.Personally i think they would be better off putting their effort into existing airports rather than the 200 year permits needed to start up another. IFT has a lot without worring about Whenuapai.
To conclude at the moment i think the warrants and the heads are about in fair comparative relative value.
I hold this stock and it is also in my 5 picks for 2005.

[Snow Leopard]

Taking an average interest rate of 5% until July 2009 then I would value warrants at head price less $2.80 or $0.60 at the present time.
That does not take into account lost dividends which requires a greater premium, but neither does it take into account the greater leverage on head price gains.
I have bought IFT heads but I would not be adverse to a few warrants in the near future.

[Toddy]

Infratil keeps extraordinary record
09 January 2005
By GARRY SHEERAN

Infratil the quiet achiever. Does the moniker really fit the sometimes outspoken listed infrastructure company?


About achievement, there can be little doubt. The company has just celebrated a decade since listing, and the average compound return to shareholders in that time has remained above 20%, if all dividends and bonuses were reinvested.

After another good year in calendar 2004, that record is likely to be maintained when Infratil reports its latest full March-year profit.

Infratil's 2004 performance rises from 26.9% to 33.1%, if the value of free warrants issued in June last year is included.

But quiet? Colourful chief executive Lloyd Morrison is quick on the front foot when it comes to battling for causes dear to the interests of Infratil.

He fought publicly and successfully against the proposed merger between Air New Zealand and Qantas, which would do no favours for Wellington Airport, two-thirds owned by Infratil.

Equally publicly, but less successfully, Infratil threw its weight behind proposals to convert Auckland's Whenuapai air base into a commercial operation, with Infratil leasing the airfield from the Crown.

Infratil rated barely a mention when brokers listed their top sharemarket picks for 2005. Multiple accolades went to names such as Telecom, Contact Energy and Guinness Peat Group (GPG).

Also given a chance of flying in 2005 were small cap stocks NZ Oil & Gas and Cadmus Technology, big performers last year. But the question remains: can they repeat the performance?

The companies investors really want to deal with are not last year's winners, nor those of the year before, nor the latest hot thing. What they really want are companies, and stocks, that perform creditably year in, year out.

If not quietly at times, then certainly with almost unparalleled consistency, that is what Infratil has done.

According to research by ABN Amro Craigs, Infratil is one of only five NZSX50 companies to have delivered annualised returns of 20% or more over the past decade. The broker puts that figure at 24.6%.

In part, this is a reflection of the fact that another two of the five companies are those in which Infratil has significant investments.

Trustpower, 35% owned by Infratil and comprising more than half of Infratil's investment portfolio, has average annualised decade-long returns of 34.2%.

Port of Tauranga, the other significant local-listed Infratil investment, has annualised returns of 31.2%.

Another company with strong 10-year annualised returns is Hellaby Holdings (25%), a company, like Infratil, in the business of investing in other companies.

The fifth company was retailer Michael Hill International, with an annualised return of 21.1%.

With the departure of Brierley Investments a decade ago, and a period in the late '90s when the GPG share price went nowhere, there was a perception that the day of the old-style investment company was at an end.

That view has changed, and GPG's resurgence in the public mind is only part of the reason.

However, analysts draw a distinction between the old players, such as the former Brierley Investments, and the likes of Infratil.

Macquarie Equities investment director Arthur Lim said old-style investment company shares suffered because they were always trading at a discount to the perceived combined net asset backing of the businesses the companies invested in.

"But with a company like Infratil, the market can see the operating earnings of companies in which Infratil invests," Lim said.

Forsyth Barr research manager Rob Mercer said Infratil had done well because early on, it saw the potential of investing in infrastructure.

"They were investing in ports and electricity companies ahead of much of the rest of the market, and were early players in airports," he said.

ABN Amro analyst Matt Henry said Infratil had benefited from being a long-term holder of assets.

Although categorised as an investment compan

[Snow Leopard]

quote:
IFT
01/02/2005
QUARTER

REL: 1311 HRS Infratil Limited

QUARTER: IFT: Infratil Results for the Nine Months to 31 December 2004

INFRATIL LIMITED
RESULTS FOR THE NINE MONTHS TO 31 DECEMBER 2004

1 February 2005

Infratil's results in the last quarter of 2004 reflect continued strong
returns from TrustPower and Wellington Airport.
Infratil's investment portfolio generally performed well. New investments
continue to be sought whilst maintaining a focus on current businesses.

Infratil's net surplus for the nine months was $42.94 million - an increase
from $20.73 million achieved in the same period in 2003. For the quarter the
respective figures were $13.31 million and $8.20 million. For the nine months
earnings before interest, tax, depreciation and investment realisations were
$46.89 million from $48.61 million in 2003.

Notable events and developments during the period were:
- TrustPower's contribution to Infratil for the last quarter was $7.5
million, a 34% increase over the same period in 2003. TrustPower's growing
list of investment projects and plans augers well for future income growth,
and the ability of New Zealand's electricity system to meet demand in an
environmentally sustainable manner.

- Wellington Airport's contribution to Infratil continues to grow at
approximately 20% as passenger throughput rises. The Airport has announced
that stage one of its Lyall Bay retail development will be completed in 2005.
This will initially increase earnings by approximately $3 million per annum.

- Glasgow Prestwick International Airport's freight volumes appear to
have stabilised and a number of new scheduled airline routes have been
announced from March 2005. The challenge of increasing passenger services
income, via better terminal facilities, and a resumption of freight growth,
via more active management, are being addressed and the new CEO is to take up
his role in February 2005.

- Other investments; Energy Developments, Port of Tauranga and Victoria
Electricity are performing encouragingly.

- Management continue to review and develop opportunities in the areas
of waste to energy, renewable energy and airports, without instigating any
material investment.

- In December 2004, Infratil initiated a further issuance of
Infrastructure Bonds. The bonds have been well received and issuance of this
maturity will cease on 4th February. In the short term, proceeds of this
issue are being used to retire bank debt.
End CA:00110926 For:IFT Type:QUARTER Time:2005-02-01:13:11:30

[Snow Leopard]

Paper Tiger's new share trading company made it's first purchase today and acquired some IFTWB at 86c.
I expect these to be a nice little earner and put the company into profit in the near term.

[Steve]

quote:Originally posted by Paper Tiger

Paper Tiger's new share trading company made it's first purchase today and acquired some IFTWB at 86c.
I expect these to be a nice little earner and put the company into profit in the near term.

PT, good on you for your new structure. Why not start a new thread updating PTs share trading company?;)

[Snow Leopard]

I presume the heads and warrants are lost in the Wellington fog?

[port hills]

quote:Originally posted by Paper Tiger

I presume the heads and warrants are lost in the Wellington fog?




Don't worry 86c sounds OK I paid 89c :)

[port hills]

quote:Originally posted by port hills


quote:Originally posted by Paper Tiger

I presume the heads and warrants are lost in the Wellington fog?




Don't worry 86c sounds OK I paid 89c :)


So if you bought using the bigger fool theory he was me, I'm still waiting for a bigger one yet, however I'm still very confident of finding one before 10 july 2009. :D

[Toddy]

Paper Tiger

You can't beat Wellington on a good day!

The sun will shine again and IFT will have it's day in the sun.

(positives - the NZ cricket team didn't have to look like chumps again.... so I didn't get an ear full from the Aussies at work this morning)

[Snow Leopard]

I have sold the warrants. I bought them as the first purchase for my trading company to get the CSN & FIN, all sorted. When the market started to decline I sold them. You can make money, even if in this case I did not, trading the warrants:
However I (not the company) still have the heads and long will I keep them.

[Major von Tempsky]

Airlines in Eastern Europe? Or for that matter, airlines anywhere.
The day IFT buys airlines I hit the ejector button immediatement.
Airlines are a disaster. They are also on Buffetts list of Do Not Buy Commodity Sectors in an Appendix in the book Buffettology.
It was a good article until the author tripped at the end.
Airports in Eastern Europe. Now that would be a different story. Airports get to clip the ticket on rising flight movements, passenger numbers and freight as well as all the byproduct airport industries.

[Snow Leopard]

MvT
Could you provide a link to the article you are refering too, please?

[shasta]

MVT, Buffett owns an airline, isnt it called Net Jets or something, for high net worth individuals!

Infratil are after airports that are already established.

PT, My SP prediction hasnt eventuated, but not much in the way of news of late.

...plus its foggy again in Wellington today!

[Snow Leopard]

quote:
Infratil are after airports that are already established

Whenuapai & Finow are a bit of a punt.


quote:
PT, My SP prediction hasnt eventuated, but not much in the way of news of late.

Don't worry, I won't sue. :)

[Major von Tempsky]

My reference was to the article posted by Toddy by Garry Sheeran on this thread. If you go "Edit" "Search" and put in "airline" on the first page, the second reference goes "Whether IFT picks up airlines in eastern Europe blah blah blah" which was the point at which I took fright. Maybe Garry did a misstype. Let's hope so.
Tell us immediately if you hear the vaguest whisper that IFT is about to take a stake in an airline of any sort anywhere and I'll be off so fast you won't see me for dust.
Buffett and airlines?
I think you need to examine that allegation a bit more closely. My recollection is that he leased aircraft to high net individuals for a while, he didn't run an airline. Whatever else he is, Warren's not crazy.

[Toddy]

IFT has been on the look out for potential airport sites in Europe for quite some time now, NOT airlines.

[Toddy]

IFT now has 19.9% of Energy Developments Ltd.
Orion NZ is selling out.
Can anyone tell me why IFT stopped at 19.9% when management have 'full confidence' in EDL and Orion have their stake on the market.

Is it something to do with the Austrailian takeover codes?


IFT23/03/2005ASSET REL: 1803 HRS Infratil Limited ASSET: IFT: Acquisition of 6.3% Stake in Energy Developments Limited 23 March 2005 ACQUISITION OF 6.3% STAKE IN ENERGY DEVELOPMENTS LIMITED Infratil announces that it has acquired a further 9 million ordinary shares(6.3%) in Australian listed energy company, Energy Developments Limited. Thepurchase price is A$4.00 per share. Energy Developments is a leader in the collection of landfill waste gases andcoal mine waste gases and use of these gases for power generation. Thismakes a significant contribution to lowering greenhouse gas emissions fromthese sources. Increasingly such projects are receiving premium revenuesfrom specific greenhouse policy initiatives in Energy Developments' keyAustralian and European segments. Energy Developments is also a leading provider of regional power supplies toremote communities and mining projects across Australia, utilising both gasturbine and reciprocating engine solutions. Infratil now holds 19.9% of the ordinary shares in Energy Developments. Infratil has acquired the shares from Orion New Zealand Limited, theChristchurch based electricity network company. Orion has also instructed Goldman Sachs JB Were to place 5.13 million of itsshares in Energy Developments and Infratil has provided a financialunderwrite of this placement for Orion at A$3.60. Also, if at any timebetween 1 April 2005 and 14 October 2005, Orion decides to sell its remaining4.25 million shares (3%) Infratil has agreed to a further financialunderwrite of that placement at an escalating price. The initial financialunderwrite price is A$3.60 (subject to adjustment for dividends & capitalreturns) per share escalating on a straight line basis to A$4.18 per share asat 30 September 2005. Infratil first acquired 10% of the shares in Energy Developments in July2002. Since that time it has, through market purchases and participation inplacements by Energy Developments, acquired a further 3.7% of the shares. The decision to move to 19.9% confirms Infratil's confidence in themanagement and Board of Energy Developments and the sectors in which EnergyDevelopments operates.

[thereslifeafter87]

Berkshire owns NetJets.

This is a company that sells fractional ownership in private jets to private individuals.

You buy part of a jet in exchange for the right to fly x amount of hours in a year.

The company pretty much completely dominates its industry, which is why Buffett likes it. But it hasn't yet made any money, incurring losses regularly.

For some reason Buffett loves it though...

[Toddy]

More positive news from Infratil.
Now, if they can get the Glasgow airport freight trend sorted out then it will be a full house. But, MG Rover is just another example how manufacturing is struggling in the U.K.

Infratil says energy developments investment coming right
12 April 2005

Utilities investor Infratil has played a game of patience with its stake in Australian company Energy Developments - lifted last month to 19.9 per cent with the purchase of close to $40 million of shares.


Infratil director Lloyd Morrison describes the investment as one which "has not been that happy for us" - but which is starting to come right.

Energy Developments, of Brisbane, generates power from landfill gases and coal mine waste methane, in several countries and often in remote areas.

The sector has been re-rated upwards by the sharemarket because of the global interest in reducing greenhouse gases and the increased government funding of projects with that aim.

Two years ago, Infratil saw the share price of Energy Developments fall below $A1.80 ($NZ1.95), compared to the $A3.25 a share paid in July 2002 for its initial shareholding. Christchurch electricity lines company Orion bought a similar stake at the same time and both topped up at the lower prices to give an average of about $A3.03 a share.

Currency movements have worked against the investors but, by the time Energy Developments' share price recovered - it closed yesterday at $A3.94 - both investors were well in the money.

After the work that both investors had put into the company - with Orion's chief executive Chris Laurie taking the top job in Brisbane - it was a surprise when Orion said it was getting out.

Infratil increased its shareholding to 19.9 per cent from 13.6 per cent by paying Orion $A4 a share for a chunk of its stake.

Orion will clear up to $76 million and has said its profit from the foray will be about $16 million.

Orion - originally drawn into the investment by Infratil - is selling for reasons including debt reduction and a focus on investing closer to home.

Mr Morrison said he would have been just as happy for Orion to stay. "They looked to exit and we had to work out the best arrangement we could."

He describes the transaction as a "very good deal" for Orion.

Energy Developments reported a record interim after tax profit of $A12.1 million for the half year to December 31 and has a string of projects in the pipeline.

Infratil has a reputation for thorough research but, looking back, Mr Morrison said it had not anticipated some of the problems within the company when it invested.

"We weren't given a clear picture of what was happening and we were not happy with that. The type of disclosures did not provide a fair picture."

Infratil believed the core business was worth more than the price it paid back in July 2002.

This discounted any value on the then Swerf project, designed to convert domestic waste into electricity.

[kiwikauri]

quote:Originally posted by Toddy

IFT now has 19.9% of Energy Developments Ltd.
Orion NZ is selling out.
Can anyone tell me why IFT stopped at 19.9% when management have 'full confidence' in EDL and Orion have their stake on the market.

Is it something to do with the Austrailian takeover codes?


Hi toddy - a bit late - but yes. If you exceed 19.9% you must make a takeover for the whole company...same as for NZ..

[Snow Leopard]

So they are intending to buy Lubeck airport, do a deal with RyanAir to get the passenger throughput, invest upto another 30M euros and do not expect a profit for five years from it.
Interesting.

Ryan Air announcement (http://www.ryanair.com/site/EN/news.php?yr=05&month=apr&story=rte-en-140405)

News from BBC (http://news.bbc.co.uk/1/hi/business/4445943.stm)

[Toddy]

PT, great stuff.
It is not very often that a Kiwi company gets exposure on the BBC web site which would be one of the most often used sites in the U.K.

Building a relationship with the largest and most successful budget airline in the world can only lead to further opportunities.

All good things take time and I will be watching developments with interest.

[James K]

Interesting numbers aren't they? RyanAir to spend 250m Euros, while IFT buy 90% for 13m EUR with a requirement to invest a further 30m EUR. A total of 43m.

RyanAir have a massive incentive to make sure this arrangement works. See also their announcement at http://moneyextra.uk-wire.com/cgi-bin/articles/200504141130020513L.html

[Snow Leopard]

Someone was eager to buy up at the end of the day 30,000+ at $3.40 a pop [:p]

[Snow Leopard]

Nice volume the last couple of days and the SP has moved from $3.33 to $3.48 over the last 5 days. Up 4c today against the general market trend.
The end of year results will be out soon, probably in the next couple of weeks.
Coincidence? Speculators?
Lets hope it lasts :)

[kura]

Bit of both I suspect

Disc: I'm one of those speculators (mainly on back of TPW)

[Toddy]

IFTs exposure to the energy sector is paying dividends. With Contact Energys recent bullish result and the carbon credit scheme just announced by the Govt many punters out there consider IFT to be a must in their portfolio.

[Snow Leopard]

[quote]quote:
IFT
16/05/2005
FLLYR

REL: 1500 HRS Infratil Limited

FLLYR: IFT: Infratil Result for Year Ended 31 March 2005

INFRATIL LIMITED
RESULTS ANNOUNCEMENT
YEAR ENDED 31 MARCH 2005

RESULTS

Infratil's net surplus for the year ended 31 March 2005 was $45.04 million,
compared with $22.47 million for the previous year. The result is after tax,
realisations, revaluations and minority interests and reflects the equity
accounting of TrustPower and the consolidation of Glasgow Prestwick and
Wellington airports and Victoria Electricity.

A fully imputed dividend of 5.5 cents per share will be paid on 17 June 2005
to all shareholders on the register as at 5.00 pm 10 June 2005.

INVESTMENT ENVIRONMENT

Infratil's portfolio of investments has performed well over the last twelve
months and steps were made toward new investments.
Over the eleven years since its formation, Infratil has maintained a focused
approach to investment. The priority is to invest where management has
expertise and can have influence with the objective of adding value. This
approach has been vindicated by results. An initial investor will have
achieved a better than 20% per annum compound return over the 11 years, a
period over which Infratil's annual returns out-performed the NZX indices in
8 of the 11 years.

As noted in last year's results announcement, Infratil is benefiting from
step-changes in the energy and airports industries. Infratil's first priority
is to choose the right sectors in which to invest and seek investment in
these sectors. Management's role is then to optimize the value of these
investments. Last year it was also noted that the challenge for Infratil is
to make new investments in these sectors at acceptable entry prices. This
challenge is being met. Each of Infratil's main investments is growing its
business organically. Infratil has also increased its interest in Energy
Developments Limited and established the fast growing Australian energy
retailer, Victoria Electricity.

With its strong capital position Infratil is well placed to take advantage of
the softer investment-market conditions now pertaining.

Maintaining returns in the airport and energy sectors is heavily reliant on
sound regulatory environments. Over the year, developments in New Zealand
have been mixed. In the Energy sector the Minister and Ministry are providing
good long-term signals and engaging in an open dialogue with market
participants, both consumers and providers. The recently announced Carbon Tax
is a sound decision which is consistent with a "no surprises" approach. It is
an effective and efficient first step down the path to market driven
reduction of Greenhouse Gas emissions. In the Transport sector, on the other
hand, the position on Whenuapai was visionless and arbitrary.

STATEMENT OF FINANCIAL POSITION, FUNDING & RISK MANAGEMENT

As at 31 March 2005 Infratil's shareholders' funds, after minorities, were
$530.68 million from $540.78 million recorded a year earlier. If listed
investments were valued at market, the 2005 figure would have been $304.42
million higher ($119.67 million higher in 2004).

After net repayments of $16.97 million of Bond funding in 2004, Infratil
issued $79.31 million of Bonds over the latest year for terms of 10 and 15
years. As at 31 March 2005 Infratil had $233.94 million of bond funding and
$10.00 million of bank borrowing. Net deposits were $5.28 million.

Infratil's offshore equity investments were not hedged during the last year.

DIVIDEND, SHARE & WARRANT TRANSACTIONS

A fully imputed final dividend of 5.5 cents per share is to be paid bringing
total dividends for the 31 March 2005 year to 10.5 cents per share. The
availability of imputation credits is the main determinant of dividends.
Infratil's main source of such credits remains the imputed dividends received
from TrustPower.

During the year Infratil bought back 7.67 mi

[kura]

While approx 100% increase in profit isn't to be sneezed at, the increase seems to have come from investment realisations/revaluations, (ie one off items) (Seems to be mainly from sell down in POT, from what I can make out ) So my interpretation is, yes result is nice, but would have prefered it all came from renewable sources (ie operating earnings)

Disc:Holder (IFT & IFTWB)

[Snow Leopard]

Until the actual annual report comes out and one has time to dissect it then who knows what come from or went where.

It does say that:
Trustpower +25.74
Wellington +23.65
Energy Dev +0.56 (in divvies)
Victoria -2.40

Total +47.55

The implication is that Prestwick actually lost money but they are not saying how much.

[trendy]

I have never liked IFT. The management contract with Morrison is not transparent. The IFT Board is effectively filled with Morrison management so is not very independent. What happens if IFT ever needed to renegotiate the management contract...they would end up negotiating with themselves (which is probably what they do now). So what is the management contract with Morrison worth? Maybe IFT could take a lesson from the property trust company structure and put the management contract up for tender. It could be worth a lot to shareholders.

Now the other issue I have with IFT is that they issued warrants with a strike price of $3.50 supposedly for the company to get additional capital for future investments. Yet here they are using capital for the share buy back program. Talk about a money go round. That would be the equivalent of NOG having a share buy back program on the heads and taking the money from the options to fund it. NUTS!

[CJ]

Trendy,

Having a management contract isn't to different to having managment in house. Take GPG which has Brieley and Gibbs on the payroll. They could separate this out to have GPG management and take the same cost as they get in salary. What is the difrerence?

I agree that having a warrent issue is unsual when doing a share buy back but I am guessing part of it is to offer investors a way to gear up the investment, that is you can buy head shares or warrents. They were popular intheir first series so they reintroduced them. Note that they were free warrents (I think??) so didn't actually raise any funds.

[Snow Leopard]

quote:Originally posted by Paper Tiger

Until the actual annual report comes out and one has time to dissect it then who knows what come from or went where.

It does say that:
Trustpower +25.74
Wellington +23.65
Energy Dev +0.56 (in divvies)
Victoria -2.40

Total +47.55

The implication is that Prestwick actually lost money but they are not saying how much.

Articles on the Herald (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10125841) and Stuff (http://www.stuff.co.nz/stuff/0,2106,3282701a13,00.html) websites pad out the detail a bit more.
Prestwick made them $3.2m. Interest ran to about $31m

Why don't they put this into the actual announcement?

[Toddy]

Paper Tiger

I am not sure why the NZX only released one announcement(attachment) re the great IFT result.
If you visit their web site (www.infratil.co.nz) you can read the result in detail.
No need to read second hand information via Stuff and NZHerald.

If you want to accumulate a holding in IFT you may find it difficult at present as there are NO sellers according to DirectBroking depth.

[digger]

Great result,so why does it matter if this is done under a management contract.They get the results and that will do me..
I will be putting my entire stake up for sale soon when the price is right.Like to be a loner on the sharemarket so would want to be the only or about the only seller around.
Have 50000 heads and 180000 iftwb. Takers please line up no pushing.

[Toddy]

Digger

Place your order. Name your price.

[TerryA]

Digger,

>>Like to be a loner on the sharemarket so would want to be the only or about the only seller around.<<

No sellers when I looked earlier this morning.

[Toddy]

Maybe IFT management received a hoax letter from the New Zealand Govt. IFT did disclose a number of details that 'only' the NZ Govt would be aware of.
Who is the lier, the Labour Govt or IFT Management?

Whenuapai plan unchanged


20.05.05


Government policy on any commercial use of Whenuapai Air Base had not changed, Defence Minister Mark Burton said yesterday.

He was refuting claims that the Government had changed its mind and was ruling out any commercial activity. Agencies, staff reporters

[shasta]

Under a National/ACT/United Future Govt they would allow this development to happen & sooner than you think as IFT have already indicated they would put in $50m into Whenuapai & they all want private/public ventures.

If Labour stay in this won't happen, instead IFT will likely look to Europe for more airports.

Interesting to see the company that owns the Chch City Council assets (port etc) has money in the same Australian energy company that IFT does.

They would be better off IMO continue putting money into there Australian energy investments, & walking away from anymore NZ investments.

Disc:A happy warrant holder in for the long haul

[Toddy]

Digger

How did you get on off loading your IFT holdings. Its been a month and a half since you mentioned your intentions.

[Toddy]

If only!

Council may sell airport stake
08 July 2005
By ROELAND VAN DEN BERGH

Wellington City Council may consider selling its international airport stake as a result of its battle with majority shareholder Infratil over dividend payments, deputy mayor Alick Shaw says.


The issue has come to a head after the council turned down a $5.7 million dividend payment for the year to March 31, its share of the $17.3 million tax paid profit, while it considered an Infratil proposal to swap its shares in the airport for convertible notes.

Convertible notes provide a fixed rate of return, but at a lower yield.

The process should give some indication what the airport was worth, Mr Shaw said.

"It will enable councillors to think about whether or not this amount of capital is properly employed there, or may be better employed in paying for the infrastructural needs of the city."

Based on Infratil's purchase price of $98 million for its 66 per cent holding in 1999, the council's stake would have been worth about $50 million at the time. The council has earned about $20 million in cash on the investment in that time.

"There are issues also in respect of our being able to protect our position into the future, which are not going to be discussed in an open forum," Mr Shaw said.

AdvertisementAdvertisementThe council also missed out on a dividend last year after Infratil decided to invest profits back into the airport, which was planning capital expenditure of about $200 million to develop the international terminal and upgrade the runway.

"I suspect that this debate will have the effect of persuading more to at least think about that possibility" of selling the airport, Mr Shaw said. "I'm not very happy having a truck load of capital tied up in something that doesn't give us a cash flow."

Mr Shaw said he would personally consider a sale, "but there will be substantial opposition to the sale of an asset".

The council has budgeted for a return of $4 million a year from the airport, or about $23 per ratepayer, in its long-term council and community plan that is due for review next year.

Failure to earn a dividend from an investment for two years in a row made it more difficult to include future earnings in forecasts used to set rates.

Total investment income represented between 2.5 per cent and 3 per cent of rates income.

Selling the airport would also significantly reduce the council's borrowings, Mr Shaw said.

Infratil executive Tim Brown said the company would be interested in taking full ownership of the airport if the council decided to sell. Discussions with the council about the structure of its investment in the airport had been on going for a number of years.

"It has been a slow process," Mr Brown said.

Having the council as an investor had benefited Infratil because both investors had the same interests for the airport.

The dividend issue was only a small part of the relationship, Mr Brown said.

[shasta]

Toddy, your thoughts on IFT's full ownership of Wellington Airport?

I previously posted they shouldnt invest in NZ anymore but this is an opportunity to gain full ownership & surely they would jump at it.

A while back i posted this share would hit $3.75, now bring $4.00.

A great bottom draw investment!

Shasta why should IFT own it It should go to tender at least.

[Toddy]

As majority shareholder IFT already makes all of the management decisions regarding Wellington International Airport. That is the main issue the Council has.
The main thing here is that the Council and IFT are talking about it and the future of the airport. If the Council are serious about exiting their holding then they will look at the best way out for them. i.e they will want to obtain the best price for their rate payers. Options may even include floating the airport on the NZX.

IFT has the upper hand on this one and could afford to pay a premium to secure total ownership. If someone else was prepared to pay more than IFT then that would signal to the market that they may want to buy IFT out in the future.
Either way you look at it, its all good for IFT.

[Snow Leopard]

I see Infratil are seeking permission to buy back upto 10% of their shares during the next year.

[duncan macgregor]

United states energy company Alliant energy corp are reviewing their stake in TRUSTPOWER. Infrantile and Alliant energy NZ Ltd werent answering phone calls this morning on the subject. There is a play going on guys pay attention. macdunk

[Futurz]

quote:Originally posted by duncan macgregor

United states energy company Alliant energy corp are reviewing their stake in TRUSTPOWER. Infrantile and Alliant energy NZ Ltd werent answering phone calls this morning on the subject. There is a play going on guys pay attention. macdunk


Looks interesting...

http://quote.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=LNT:US&sid=aYeDtYR83Ydw

[Toddy]

Sounds like the management down at IFT have been busy talking.

Three possibilities on the go.
10% share buyback.
TPW shareholding restrucutre.
Wellington City Councl talks about the future structure of Wellington International Airport holding.

Anyone of the three above should breed some life into the IFT share price.

[Toddy]

Looks like another airport no-go.

Ryanair May Cancel Planned German Base After Court Decision
July 19 (Bloomberg) -- Ryanair Holdings Plc, Europe's biggest low-cost airline, may cancel a planned new base in the northern German city of Luebeck after a court ruling jeopardized expansion plans at the airport.

The Dublin-based airline said in April it would serve 2 million passengers a year with four new Boeing Co. 737-model aircraft operating from Luebeck, representing an investment of $250 million. The plan was dependent on the completion of a purchase agreement between the city and Wellington, New Zealand- based Infratil Ltd., an airport and infrastructure investor.

The higher administrative court in the state of Schleswig- Holstein decided yesterday to halt the airport's expansion because of improper zoning and lack of consideration for a wildlife sanctuary. Ryanair started to explore alternative sites after it became clear plans to open the base by Oct. 31 couldn't be met, said spokeswoman Caroline Baldwin.

``We're in talks with a number of other European airports,'' she said, declining to name them. ``Those aircraft will be deployed elsewhere.''

Ryanair might still go ahead with the expansion plan for Luebeck if the purchase agreement is completed, she said.

Infratil agreed to buy a 90 percent stake in Luebeck airport from the city for 13 million euros ($15.6 million) and to invest 60 million euros, airport operator Flughafen Luebeck GmbH said in April. The purchase required approval by the city council and depended on court approval of the expansion plan at the airport, which is near Hamburg.

Ryanair aimed to operate routes to the U.K. and mainland Europe from the airport. The carrier also has a hub at Fraport AG's Frankfurt-Hahn Airport and flies out of an airfield near Dusseldorf, Germany.

[Snow Leopard]

I presume some time will be spent trying to get this past the court and if not then Infratil will go looking for other opportunities.
Still it is a bit of a short-term setback.

[COLIN]

So why did the s.price go up today? Did the market think that Lubeck was a bad idea? Perhaps people saw it as another Glasgow-Prestwick, which has not exactly performed brilliantly.

[Toddy]

Lubeck was only an option, and a relatively small one compared to the size of IFT. The market did not react when the idea was originally announced and neither did it when the project was basically canned. There will be other European options out there.
And yes, I would think that the market probably would prefer IFT to pile more cash into TPW via Alliant Energy selldown or use the cash for the proposed (upto) 10% market share buyback which is up for approval at the August AGM.

[Toddy]

Not any talk on the forum about IFT.
Great result by TrustPower.
IFT head share broke four bucks for the first time yesterday.
AGM coming up next week. Will IFT buy back shares off Alliant Energy?
Any comments on the proposed upto 10% share buy back.
Digger, how did the exit go a while back.

[Snow Leopard]

Are Alliant selling their shares? This seems to be in doubt.
A buy back would be useful if there is spare cash sloshing around and the SP is way down, otherwise better to find some more infra-structure.

SP doing well at the moment, in a strong uptrend.

[Toddy]

The boy's down at Air NZ must be fuming!



Air NZ told to pay $2m


02.08.05


By Chris Daniels


Air New Zealand has been ordered to pay more than $2 million in legal costs to its opponents in its failed Qantas-Alliance court case.

The airline tried to get Commerce Commission approval for a plan where Qantas would buy a 22.5 per cent stake in Air NZ for $550 million and set up a price- and schedule-fixing deal between the two airlines.

This was refused, since the commission found consumers would be damaged by the alliance. The plan was approved by Australian competition authorities but an Air NZ appeal to the High Court at Auckland failed.

Now the commission and alliance opponents Infratil and Gullivers Pacific have won an application to have Air NZ pay their legal costs.

The commission's total claim against Air NZ was $1,747,796, while Infratil and Gullivers both asked for $300,000. While some of their cost requests were turned down by Justice Rodney Hansen in the High Court, the airline's bill will be more than $2 million.

Infratil is owner of two-thirds of Wellington Airport and opposed any alliance plan. It was joined by Gullivers, which owns the United Travel and Holiday Shoppe franchise brands, and also operates wholesale travel operations and corporate travel agencies.

An airline spokesman said yesterday that the company was deciding whether to appeal against the costs decision.

Air NZ lawyer Jim Farmer, QC, argued in April against the airline having to pay the commission's legal costs. One of his arguments was that the commission's participation in the appeal should be seen as part of its statutory function.

The process of getting a clearance or authorisation to form the alliance was intended to achieve the objects of the Commerce Act.

"A right of appeal is provided; the commission is expected to participate; its costs of doing so should be regarded as having been incurred in the management and administration of the statutory scheme."

Justice Hansen said this was no reason for it not to be entitled to costs. Commission lawyer David Goddard, QC, told the court that costs were routinely awarded to public bodies taking part in litigation.

The commission itself recovered and could be liable for costs in other cases.

"There is no question that the appeal in this case similarly raised issues of general public importance. However, it was initiated and pursued in the private interests of the appellants and I see nothing unjust in their being required to contribute to the costs of the commission."

Air NZ is still trying to stitch up some kind of alliance deal with Qantas, perhaps in the form of a code-sharing arrangement.

[Toddy]

IFT is dribbling info to the market before the AGM. Can we expect something big pulled out of the hat next week.

Wellington airport in line for major makeover

Wellington Airport announced today that it will invest up to $76 million over the next two years to expand and upgrade the terminal to accommodate traffic growth, extend the runway, improve parking facilities, and position Wellington to take advantage of future long-haul flight options.

"Our goal is to give Wellingtonians and visitors the airport they crave," said Chief Executive Simon Draper. "Air travel has become more accessible, but it's still exciting for most travellers - and the experience begins and ends at the airport. Our upgrade will create a more enjoyable and stimulating terminal with a lot more space in the international lounges, funky retail outlets that reflect the Wellington scene and iconic New Zealand products, more duty free shopping, and expanded and reconfigured processing areas."

The $41 million investment in the terminal upgrade will include a significant expansion and redevelopment of the international lounge. The new international terminal will have eight aerobridge international departure gates, up from the current six (two of which are and will remain "swing gates" available to domestic aircraft as well as international). It will also include capacity to park wide-bodied aircraft, including the new long-haul Boeing 787, which will be launched in 2008 and is capable of flying direct from Wellington to Singapore and many other long-haul destinations.

"The 787 will revolutionise Wellington tourism and business, and is something we are absolutely determined to achieve," said Mr Draper. "However, the extra international departure gates are needed now. Growth on trans-Tasman volumes means the international lounge, arrivals areas and aircraft gates are congested during peak periods and we need to address this urgently."

Since the beginning of 2004 the number of international airlines operating from the terminal has grown from four to six, while the Gold Coast and Nadi have been added as destinations. The Australian budget airline Jetstar has also announced it will begin flying in New Zealand later this year.

Wellington architects Studio of the Pacific Architecture and Warren Mahoney are doing the design and construction work is scheduled to begin early next year and be completed by late 2007.

"The design brief included a requirement to reflect Wellington's status as a vibrant and daring cultural city," said Mr Draper. "In terms of Wellington Airport's overall retail environment, we are very keen to broaden the range of outlets and greatly increase local content so that it fully reflects the diversity and sophistication of Wellington's retail scene. We'll be approaching retailers who we believe are as 'Wild at Heart' as we are."

Wellington City Mayor Kerry Prendergast said: "This is fantastic news for Wellington and a sign that Wellington Airport has confidence in this city's future, not just from a business perspective, but from a tourism perspective as well. Wellington will continue to grow as a significant business centre and a tourism destination, and we need to be prepared for it with sound infrastructure. We congratulate the company on its foresight."

In addition to the terminal upgrade, the investment includes a $23 million extension of the southern end of the runway by 90 metres to deliver an additional safety precaution. An option analysis into lengthening the runway's northern end is also underway.

"This project is principally driven by a desire to further improve safety at the airport. The expansion will bring us into line with best practice internationally. Naturally, we don't rule out extra runway length where we can deliver it at a reasonable cost. The 787 is able to operate long haul off the current runway, but all improvements are worthwhile and there are some existing short-haul aircraft that suffer limitations on our runway."

Some $12 million has been earmarked for car-parking red

[Toddy]

Did anyone out there attend the AGM.

What was the feedback like out there. Were the shareholders happy with what was said.

[Toddy]

O.K, I'll just talk to myself then. Guess that no one is interested in one of the best performing Coy's on the NZX over the last five years.

Bullish Infratil doubles its profit
09 August 2005
By GARETH VAUGHAN

Infratil posted a 117 per cent rise in first quarter operating profit before investment realisations and predicted a bright future for infrastructure investing.


Director Lloyd Morrison told the infrastructure and utility investor's packed annual meeting at Auckland's Tamaki Yacht Club yesterday that he saw a future for infrastructure investing that was "as good as it had been for the past 10 years". During that period, Infratil's share price has risen steadily.

The company said operating profit after tax rose to $6.49 million in the three months to June 30, up from $2.99 million on the same period of 2004. Including $9.27 million in investment realisation gains, net profit in the first quarter of 2004 was higher at $12.3 million. There were no gains from investment realisations in the first quarter this year.

The contribution from TrustPower, of which Infratil owns 35.2 per cent, increased to $8.6 million from $5.5 million.

"TrustPower continues to be Infratil's key investment. All aspects of its operations appear to be functioning outstandingly," the company said.

Earnings from Infratil's 66 per cent stake in Wellington Airport rose 22 per cent to $6.33 million. Chairman David Newman said Infratil had received no indication from Wellington City Council that it wanted to sell its 34 per cent airport stake. "We would like to have 100 per cent if it came at the right price," he said.

Mr Newman said Infratil was still talking to Luebeck City in northern Germany to see if it could "go in and run" Luebeck Airport. An environment court ruling kast month halted runway expansion plans at Luebeck, and potentially a $77 million deal for Infratil to buy and upgrade the airport. If possible, Infratil wanted to increase passenger numbers through the airport to more than two million a year from 500,000, he said.

AdvertisementAdvertisementAn increase in annual management fees paid to Infratil's managers Morrison & Co to $8.7 million from $6.4 million reflected growth in Infratil's shareholder value, Mr Newman said.

[Binklebonk]

Toddy, I think one reason is because IFT are generally good communicators (i.e regular email updates etc), there's not as much need to second guess what they're up to.
Although I'd like them to provide more regular NTA updates.

[Toddy]

Work still going on in the back ground.



Airbase marked in plan for Waitakere city


22.08.05


By Chris Daniels


Waitakere City Council is to start changing its district plan to ensure that the Whenuapai military airbase can be secured for future civilian use.

Listed airport company Infratil joined forces with the council two years ago to try to get the airbase converted into a commercial airport suitable for low-cost airlines.

After a campaign that pitted the council and Infratil against Auckland International Airport and Air New Zealand, the Government scuppered the deal by saying the Air Force would not move from the site for 10 years. Infratil was prepared to spend more than $50 million to bring the airfield up to scratch for commercial operations. It would serve as a secondary airport for Greater Auckland.

Waitakere development committee chairwoman Penny Hulse said yesterday that planning changes would be made that recognised "the existing use of the airbase and the council's objective that it be reused for commercial aviation".

Any alternative uses, other than those related to an airport, would "have to stack up against the city's long-term objectives".

An economic analysis has estimated a financial loss to Waitakere of $230 million a year if the Air Force leaves its Whenuapai base.

"This is no different to earmarking farmland for future use as a park. We are putting a solid stake in the ground about what the land use should be, bearing in mind the social and economic objectives that we have for the city," Hulse said.

[Snow Leopard]

Infratil buy Kent International Airport (http://stocknessmonster.com/news-item?S=IFT&E=NZSE&N=119724)

[Snow Leopard]

Kent International Airport.

This used to be RAF Manston and one of it's roles was to provide an airfield for aircraft in trouble to crash at.
If a plane full of tourists had a dodgy undercarriage etc then it was sent to Manston to spread itself all over tarmac there instead of bringing Heathrow to a halt, the RAF fire school was there to provide plenty of fireman to clear up the mess. I presume that this role has been dropped.
Anyway it is one of the reasons why the runway will cope with the biggest jets.

Infratil seem willing to invest GBP17m upfront and another GBP8m(?) in the near future on assets. I think that is a good buy if you have a fully functional civilian airport. Additionally they are expecting to lose upto GBP10m over four years before they turn a profit. Getting freight flights pronto in is a pretty useful idea.

Obviously they think they can do well in the long run out of this and I see it has a better use of money than a share buyback.
As a shareholder for the long term I certainly hope it works out well :)

[Toddy]

Paper Tiger

From a practical point of view, a couple of people flew out of Kent airport from my work last month on trips to Europe. They said that it was a great airport and are all for Infratil taking it forward.

Its all set up, just needs the right coy to take the next step.

[Binklebonk]

First thoughts are it sounds incredibly cheap to buy an asset like that in that location at that price.
Interesting the SP has dropped, I think it's because of the instant gratification factor as it will take a few years to generate income onto the bottom line, however they are a very good long term asset manager and have consistently added value at around 20% p.a which is pretty good.
They can probably leverage value based on their experience with Glasgow.

[CJ]

I wonder how far along they are with talks with Ryanair etc or whether they are gonig to focus on freight at the start.

Is IFT looking to become a specialist airport operator? This seems to be whether they are focusing their energy while raking in the cash from Trustpower.

[Dough Boy]

People may want to hold B Options in this one like I do.

I have switched from the shares to the B options recently (about 4 weeks ago bought at 91 cents) as they appear to provide a better long-term return and allow me to minmise the cash tied up in this investment.

At 96 cents and with conversion payment of 350 cents in 4 years and current SP of around 386 this translates to a low 3.7% gain per annum in the SP to break-even.

Something to consider for long-term holders (4-years) who want to minimize their cash investment with some fairly low risk leveraging.

[Toddy]

Austral Pacific.................. interesting from IFT.

IFT27/09/2005GENERAL REL: 1626 HRS Infratil Limited GENERAL: IFT: Infratil to Acquire 11% of Austral Pacific INFRATIL TO ACQUIRE 11% OF AUSTRAL PACIFICInfratil has acquired 2.456 million shares in a placement by the NZX listedcompany, Austral Pacific Energy Limited ("APX"). Infratil's total investmentis US$6.14 million. Infratil's shareholding in APX will be approximately11%. The placement price was US$2.50 per share (NZ$3.60).Infratil will also receive 1.228 million unlisted warrants as part of thisplacement. The warrants entitle the holder to acquire an additional share inAPX at US$3.50 per share anytime within the next year.APX is Infratil's first investment in the upstream New Zealand oil and gassector.Dr Bruce Harker, Executive Director of Morrison & Co said "APX provides someupstream exposure for Infratil to New Zealand's tight gas supply market. Ithas a number of prospective exploration opportunities, predominantly inTaranaki, and is well placed to grow its portfolio.APX is complementary to our existing energy portfolio, although we expect ourtotal upstream exposure to remain modest in relation to Infratil's totalinvestment in the energy sector, principally through TrustPower and EnergyDevelopments."

[Toddy]

Also very interesting given that IFT management have made conservative low risk investments in the past. Does IFT know something that we do not.

[kura]

As I recall their investment in (unsure of name ? Possibly "Energy Developments" ) was a looser for them, not sure if they are still holding or they have got out now. So following there picks is not a gauranteed strategy.

[Toddy]

Kura

Are you joking......... take a look at Energy Developments share price. (ENE on ASX)
IFT got that one 100% right.

[Snow Leopard]

Interesting: APX have several wells with gas and/or oil that are being tested.
I must admit that at the moment I am surprised by this investment.

[Toddy]

Also as part of the deal IFT have been given warrants to buy Austral Pac shares at NZD 5.16 within 12 months.
At current price of NZD 3.60 it is surely a very very long shot.

[rmbbrave]

Infratil enters exploration arena

28.09.05
By Chris Daniels


Infratil is moving on "upstream", saying it has invested in an 11 per cent stake in oil and gas explorer Austral Pacific.

Austral Pacific has sold the shares in a placement, with Infratil buying in at $3.60 a share, investing just over $9 million.

Its shares have traded on the NZX at prices ranging between $3.80 and $4.30 this year. Infratil is also getting 1.228 million unlisted Austral warrants as part of the deal. These allow it to buy additional shares in Austral Pacific at US$3.50 ($3.66) each any time in the next year.

Infratil's energy investments are its 35.2 per cent stake in TrustPower, the fifth-largest power company in New Zealand, with a generation business and retail customers. It also has a 20 per cent stake in an Australian green energy producer, Energy Developments, and a share in Victoria Electricity.

This is its first foray into oil and gas exploration, known in the energy sector as the "upstream" part of the business.

Company founder and Infratil chief executive Lloyd Morrison said in August that there was little scope left in New Zealand for new Infratil investments, with further infrastructure privatisations off the political agenda of both major parties.

Infratil's recent investments have been in airports, with it spending $46 million buying Kent International Airport in Britain.

Infratil's share price has increased this year from a January low of $3.29 to a high of $4.15 in mid-August. It shares closed yesterday up 2c at $3.86.

Austral's home listing is on the Canadian TSX exchange, and its shares are also traded on the AMEX board and the NZX.

Talk around its Cardiff deep gas exploration well has been positive for some time, despite final testing of gas flows yet to be completed. It is the field operator, with state-owned energy company Genesis owning a 40 per cent stake in the project. Genesis wants gas from wells such as Cardiff to burn in its power stations.

Bruce Harker, executive director of Infratil's management company Morrison and Co, told the stock exchange to expect the company's exposure to the upstream sector to stay modest.

"The recent lift in New Zealand gas prices are likely to be sustained and this should allow profitable development of smaller onshore gas fields."

Infratil also believed that the Government would increasingly pressure permit holders to meet their indicated exploration plans and that this would result in smaller exploration companies seeking additional capital. This would "provide acceptable entry pricing for investors".

Crown Minerals asks companies to bid for the right to explore for oil and gas. Explorers do not pay a lot for the permit, but the winner is the one that promises the most work, usually seismic research or drilling.

This is where the big drain on resources happens, with explorers looking to "farm out" stakes and bring in partners to help pay for expensive drilling programmes.

"Infratil would look to support Austral Pacific should it require capital to maintain its interests in successful discoveries as these move from exploration to more substantive long-term production infrastructure investments," said Harker.

He also said that in the short term "no specific linkages are seen between Austral Energy and Infratil's other New Zealand energy sector investment at TrustPower".

* Infratil chairman David Newman, who is also chairman of Austral Pacific, was excluded from taking part in its consideration of this investment, said the company.

[Bob Marley]

Hey mon, Dave New-mon, mon, is chairman of both IFT and Austral mon. Maybe he thinks Austral's Cardiff gas field will come up trumps mon.

[kura]

Sorry Toddy, last time I looked was a few years ago, and they were definitely out of the money back then, I have recollections of the SWERF project of ENE nearly sending the company under.

[Binklebonk]

quote:Originally posted by kura

Sorry Toddy, last time I looked was a few years ago, and they were definitely out of the money back then, I have recollections of the SWERF project of ENE nearly sending the company under.

Kura you are right to the extent that when ENE puled out of the swerf project, there was a dip in their SP that meant the price was below acquistion value, however that was only a short term thing, the shares are trading at 4.80 which is probably about double what IFT paid.

As to the latest move, the one fact we do know is that every energy investment that IFT have ever made has turned to gold.

[Toddy]

IFT have been out and about in Kent. The guy from Kent opposite me at work showed me a copy of the local paper today where KIA had an advert asking locals where they would like to fly to in Europe/U.K/Irland etc. There was even as prize up for grabs, a 20 minute flight around Kent, a hotel for the night and a bottle of bubbly.

Its good to see that they are getting involved with the local community which is very unusual in this part of the world.

[Toddy]

Thats the end of cheap IFT stock.

IFT
25/10/2005
BUYBACK

REL: 0956 HRS Infratil Limited

BUYBACK: IFT: Infratil Announces its Intention to Buyback Shares

Infratil Announces its Intention to Buyback Shares

In accordance with Listing Rule 7.6.2 Infratil announces its intention to buy
back some of its ordinary shares commencing after the announcement of its
half year result on 8 November 2005.

Specifically, the buybacks will occur from 9 November 2005 through to 8
November 2006 and be for up to 21.5 million ordinary shares

[James K]

And Luebeck Airport is on again. IFT really is a true LTB&H stock.

[shasta]

Toddy, suggest you grab the B warrants then!

[Snow Leopard]

Stagecoach?

Puzzled Tiger

[Snow Leopard]

Stagecoach NZ figures from Stagecoach plc summary report for 2005.
Figures are millions NZ$
<pre id="code">
2005 2004
Turnover 160.6 160.9
Profit* 23.7 29.5
</pre id="code">
*Profit is described as operating profit and is, I believe, pre-tax.
2005 reflects competition from the revamped train service in Auckland, (well that's what the report says).
Stagecoach appeared to be expecting a lesser result 2006 due to trains and the six day strike in Auckland.

I guess it depends upon the price to be paid.

[k1w1]

The difficulty with integrated public transport in Auckland is the myriad of operators. If Infratil can buy up the opposition and create a unified system that can flow to transport hubs and on from there via express buses/trains/ferries on a single unified ticket public transport is going to become much more attractive for traffic jammed Aucklanders.

[rmbbrave]

Infratil to buy Stagecoach NZ business
18 November 2005

Infrastructure investor Infratil has entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business.


Infratil did not disclose the purchase price, but said it would make a further announcement no later than November 29.

Stagecoach operates bus services in Auckland and Wellington, with about 365 buses in Wellington and 658 buses in Auckland. Stagecoach also owns Fullers ferries in Auckland.

Earlier this month Infratil indicated it was on the lookout for more acquisitions.

The purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 per cent of Luebeck Airport in Germany and bought an 11 per cent stake in small oil and gas explorer Austral Pacific for $9 million.

Infratil's other investments include a 66 per cent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport in Scotland, an 88 per cent stake in Victoria Electricity and a 35 per cent holding in TrustPower.

Shares in Infratil were placed in a trading halt ahead of the Stagecoach announcement, which was made after the sharemarket closed today.

Prior to the trading halt, Infratil shares were trading up 1c at $3.68, having ranged between $3.21 and $4.15 over the past 12 months.

[shasta]

Any estimates of the purchase price, at 6 - 8 times profit (Using PT's figures) would have a purchase price of around $140m - 200m, quite a risky punt compared to there other recent investments surely.

[Snow Leopard]

quote:from www.telegraph.co.uk

Stagecoach 'could offload its NZ operations'
By Caroline Muspratt (Filed: 18/11/2005)


Transport group Stagecoach, which runs South West Trains and Megabus, could sell its New Zealand operations after receiving several approaches for the business.


Stagecoach runs South West Trains and Megabus
The company said it was in discussions over a possible sale of the arm to Infratil, an investor in infrastructure and utility assets that is listed on the New Zealand stock exchange.

Stagecoach said it had "received several approaches" for the New Zealand operations though there was no certainty a disposal would take place.

A spokesman for the company said: "We’ve got a duty to consider and approach that we receive."

It is understood the statement was prompted by an announcement by Infratil on the New Zealand stock exchange.

Infratil said in its statement it "has entered into a conditional agreement with Stagecoach plc with respect to acquiring the New Zealand bus and ferry business of Stagecoach plc."

It added: "A further announcement is expected by not later than 29 November 2005."

Stagecoach’s New Zealand operations involve urban bus passenger services in Auckland and Wellington. It also owns Fullers ferries in Auckland.

The group reported sales of £59m and operating profit before goodwill of £8.7m in respect of its New Zealand operations last year.



Whilst NZ news seem to regard this as a done deal, overseas news sources seem to be implying that there is many a slip between cup and lip, so to speak.

[rmbbrave]

Bus line fits with Infratil strategy

19.11.05
By Chris Daniels and NZPA


It does not quite count as a privatisation, but the sale of the formerly local government-owned Stagecoach bus and ferry company is exactly the kind of investment Infratil was set up in the mid-1990s to pursue.

In August, company founder and chief Lloyd Morrison said there seemed to be little scope left for new Infratil investments here, since further infrastructure privatisations were off the political agenda of both major parties. "Although I believe strongly the country would be better off with a change of ownership structures across a lot of areas of infrastructure, I just don't think it will happen," he said.

Infratil yesterday entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business for an undisclosed sum.

The philosophy behind the Infratil business is to buy infrastructure assets when they are good value, then turn them around, waiting until the investment matures before deciding whether to sell out - which can be a long time.

Infratil has no staff and its assets are managed by executives at founder Morrison's investment bank Morrison & Co. It takes a strong, active interest in the management and operations of the companies it buys into.

The strategy has generally paid off well. A subscriber to the Infratil shares in its float in March 1994 has received a return of 20 per cent per annum return after tax over the 11 years to March 2005. This includes dividends.

The Stagecoach purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 percent of Lubeck Airport in Germany and bought an 11 percent stake in oil and gas explorer Austral Pacific for $9 million. Other investments include a 66 percent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport and an 88 percent stake in Victoria Electricity.

[Toddy]

Another trading halt.

[Toddy]

Why not speculate on what the IFT trading halt is for.

Surely they would not ask for another halt before releasing more information about the Stagecoach deal. The market is already aware that a conditional deal has been done.

Maybe investments in
Christchurch Airport
Increase in Wgtn Airport, TPW or Energy Developments.
Another European Airport
Or something along the lines of PPP who are tied up in the Tui Oil field and Hector.

Who knows........... any ideas out there.

[Snow Leopard]

I will assuming that the exercise of warrants is not the reason for this halt. But otherwise I am happy to just wait for the information.

[Placebo]

Interesting move buying the buses/ferries. Quite a significant shift in focus I feel. Up to now has all been about buying infrastructure. Now it will also be a public transport operator. Much bigger risks, much slimmer margins. Stagecoach has been very successful in the UK, but it is a different structure there with competing bus operators. Here it is basically one in each city (with a couple of routes being exceptions).

I disagree with the above article, I don't see that it fits their philosophy at all. Plenty of companies that do, e.g. Aussie toll road operators

What next? MFT? AIR?

[Snow Leopard]

Well they reckon they have bought it and they say they are going to pay NZ$250.5 for the priviledge.
Like Placebo I have my reservations about this I would hope that we get a very full statement answering the Why? pretty promptly. Until then I will try and reserve judgement.

[Snow Leopard]

Infratil's Stagecoach FAQ's (http://www.infratil.com/stagecoach_faqs.htm)

[CJ]

Isn't stagecoach the equivalent of buying an airline rather than the airport?

[Toddy]

Time will tell. But Morrison and Co have experience in running public transport services and know exactly what they are getting themselves into.


For my money its significantly better than investing in Austral Pacific where they do not have limited management input, there is either commercial gas in Cardiff or there isn't.

[CJ]

What was the second trading holt for? Did they just provide more details?? {just read the announcement - that was very quick between conditional and unconditional)

What is Go Bus? Is it the equivalent to Stagecoash in the Waikato?? Will Infratil look to buy out Morrison and Co on this to get even bigger economies of scale??

[CJ]

quote:Originally posted by Toddy

there is either commercial gas in Cardiff or there isn't.

And the price they paid reflects that uncertainty. If there is it will pay of, if there isn't it wont. A gamble yes, But ...

In theory Stagecoach is a mature business. It has been around since (at last my whole life) so how can they improve or are they just buying for cashflow?? Interestingly, they bought it for a P/E of 6.7. If Infratils P/E is greater than this (which it is at 26), does that instantly increase the value of IFT or does it reduce th P/E we should be applying to IFT?? I expect the later.

[trendy]

This is an oddball move. Is there any growth potential in public transport? Sector relies on heavy local government subsidies.....not a good investment if you ask me.

[Toddy]

Their recent investment in the graphics company Isite now makes total sense.
IFT management must have been pretty confident about the Stagecoach deal at the time they purchased the advertising company. The advertising side of the Stagecoach business must be worth big money alone.

IFT valuation.
In the past IFT has been valued by the market on a discounted NAV basis. As IFT becomes more of a cashflow company maybe the analyists will factor in the PE ratio.

Lets see what happens when the market opens tomorrow. Stagecoach unlike other recent investments has a solid cashflow so I think that the market will welcome the news.

Have we seen the last of investment announcements from IFT for the year ot will their be more to come.

[Toddy]

Is this an example of IFT management being pro-active.

From the Stagecoach U.K site.

Disposal of New Zealand operations

21/11/2005

Further to its announcement of 18 November 2005, Stagecoach Group plc (“the Company”) is pleased to announce that it has now agreed unconditional terms for the divestment of all of its New Zealand operations (“Stagecoach NZ”) to Infratil Limited, a company listed on the New Zealand Exchange that is a specialist investor in infrastructure and utility assets. The divestment is expected to complete by 29 November 2005.

Stagecoach NZ operates bus services in the Wellington and Auckland areas of New Zealand, and ferry services in the Auckland area.

The enterprise value agreed for the disposal is NZ$250.5m, to be settled in cash. The cash payable by Infratil will be adjusted to take account of cash retained by Stagecoach NZ. After taking account of this, together with transaction costs and the impact of the Group’s foreign exchange rate hedges, the disposal is expected to result in a reduction in the consolidated net debt of the Company of approximately £95m.

The turnover and operating profit reported in the Company’s consolidated accounts for Stagecoach NZ in the year ended 30 April 2005 were £59.0m and £8.7m respectively, under both UK GAAP and IFRS. The gross assets of Stagecoach NZ as at 30 April 2005 were approximately NZ$308m. The consolidated net gain on disposal is expected to be approximately £20m.

The proceeds of the disposal will initially be used to reduce net debt, and the disposal is not expected to materially impact consolidated earnings per share.

The management team of Stagecoach NZ led by Ross Martin (Executive Chairman) will remain with Stagecoach NZ under its new owner.

Brian Souter, Stagecoach Group plc Chief Executive, commented: “The Group’s New Zealand operations have been tremendously successful under our ownership, delivering excellent financial returns. We received an approach about the possible sale of the business and, after assessing Infratil’s offer and the prospects for the New Zealand operations, we concluded that the disposal was in the best interests of our shareholders. We remain focused on our strategy of maximising shareholder value from the Group’s portfolio of bus and rail businesses through organic growth and we are continuing to explore the potential for complementary acquisitions in the UK and North American bus markets."

[CJ]

No shareprice reaction and only a small reduction in the warrents.

Are people uncertain or thyey just dont care??

[Halebop]

A reasonably stable cashflow, little competition, cashflows underwritten by public funds. The acquisition has the hallmarks of many standard infrastructure investments. I think it's pretty much business as usual.

I suspect public transport is also a modest demographic play: The aging population in the longer term assisting Stagecoach's least profitable routes during the day. While the major cities will most likely continue to promote and support public transport in the face of higher than norm population growth and the congestion / distribution / infrastructure challenges this creates.

[Snow Leopard]

Infratil's Stagecoach acquisition presentation is available on their announcements page (http://www.infratil.com/announcements.htm) and I must say it does not actually strike me as a great deal for Infratil (and thus me).

[Snow Leopard]

a cue for all you Monty Python fan's out there:

I didn't expect the Stagecoach Acquisition...

[kittydashwood]

forget the buses for a moment.
Surely it's abrilliant plan to expand the ferry services in all directions Riverhead, Albany, PtChev, Upper Harbour, warkworth, Walkworth. Good for traffic congestion, good for tourism, good for IFT holders.
Sea unites and land divides in Asia and the Pacific, Eurocentric infrastructure assumptions are fine in the Northern Hemisphere!
Wake up and smell the sea breeze because hopefully all those smelly buses will run on chip fat from ferry patrons.

[8]

[Sideshow Bob]

Shareholder discount???

[rmbbrave]

Infratil plans quick Stagecoach payoff
23 November 2005
By MARTA STEEMAN

Infratil has forecast positive earnings from Stagecoach's bus and ferry business in the year to March 2007.


The infrastructure investor earlier said it had finalised a deal to buy the business for $250.5 million.

Yesterday it said growth would come from a likely doubling of funding for public transport in the next 10 years.

The Auckland Regional Transport Authority was looking at a 10-year plan for public transport funding of bus, ferry and rail services and Stagecoach was represented on the working groups.

Stagecoach executive chairman Ross Martin said the authority wanted to boost bus trips from about 45 million a year in Auckland to 90 million in the next 10 years.

In the future, public transport funding would not be about lowest price tenders but value for money. The existing tenders would remain in place till a new structure for funding public transport was resolved.

Longer-term and larger contracts were a likely outcome from the review of funding public transport services.

Infratil executive chairman Lloyd Morrison said Morrison and Co, which manages Infratil's investments, had become a 41 per cent shareholder in Waikato bus company Go Buses. The experience led it to develop an interest in Stagecoach a couple of years ago.

Infratil said the purchase would be funded from existing facilities. After the acquisition, total debt would rise to about $590 million. Gearing would be a comfortable 41 per cent.

The Stagecoach deal was expected to be earnings per share positive (pre amortisation of goodwill) in its first full year, the year to March 2007.

Stagecoach's revenue for the year to April 30, 2005, was $165 million. Earnings before interest, tax, depreciation and amortisation were $35 million.

Infratil forecast Stagecoach's ebitda to rise 11.5 per cent to $39 million in the year to April 2006, partly as a result of fare increases.

Of the $165 million in revenue from the bus services in Wellington and Auckland and the ferry services in Auckland, $115 million was fare revenue.

Two-thirds of the business is in Auckland and a third in Wellington. The average age of the fleet is eight years. New buses have cost $70 million in the past three years.

[Toddy]

A nice little article on Bloomberg.

Infratil Bus Purchase May Get Auckland Motorists Out of a Jam
Nov. 28 (Bloomberg) -- Gilbert Ullrich has opened more branches of his aluminum products business in Auckland to cut time lost by delivery trucks stuck in traffic jams in New Zealand's biggest city.

Auckland ``is being suffocated by the traffic,'' said the owner of Ullrich Aluminium Co., New Zealand's largest maker of aluminum ladders, joinery and boat fittings. ``We need decent public transport.''

As of this month, expansion of bus services will be the job of Infratil Ltd., a Wellington-based utilities investor, which agreed to buy bus companies in Auckland and Wellington from Perth, Scotland-based Stagecoach Group Plc for NZ$251 million ($173 million). The buses are subsidized by local governments that vowed to woo more commuters out of their cars and on to buses.

Fourteen years of economic growth has filled Auckland's streets with new cars, slowing morning rush hour traffic to an average 35 kilometers an hour (22 mph) according to the Regional Transport Authority. In the next 11 years the city's population is forecast to grow 25 percent to 1.6 million people, putting another 100,000 vehicles on the road.

Two-thirds of Stagecoach's bus fleet is in Auckland, where the Authority plans to spend NZ$6.8 billion on roads in the next 10 years to ease congestion. Another NZ$3.8 billion will go on improving public transport in an effort to double the number of bus trips to 90 million a year.

`National Focus'

``For environmental reasons, for congestion reasons, there's very much a national focus on improving public transport,'' said Lloyd Morrison, whose investment bank manages Infratil. ``The outlook for the sector is good and we expect a considerable increase in patronage over the next 10 years.''

The acquisition adds 1,023 buses, 10 depots and nine commuter ferries to Infratil's investments, which include a controlling stake in the airport company in the capital city of Wellington, and three other international airports. The company also owns electricity utilities.

Infratil's purchase comes six months after a strike by drivers put Stagecoach buses off Auckland's roads for seven days. Patronage has also fallen since 2003, following competition by new rail services and a decline in the number of Asian students studying in the city.

``To run buses you have to do lots of little things well all the time,'' said John Norling, who helps manage the equivalent of $590 million at Alliance Capital Management in Wellington. Infratil is a good manager which will get its share of new business in Auckland. Whether it can translate that into better- than-average returns is yet to be seen, he said.

Local Ownership

Building solid businesses in a strong national economy is a key theme for Morrison, 48, who was deputy chairman of the country's stock exchange until he resigned in September because of other commitments.

In the past year, he campaigned against an alliance proposed between Qantas Airways Ltd. and Air New Zealand Ltd., the biggest airlines serving the country, and a bid by Australia to take over regulation of New Zealand's banks.

Infratil is also leading a so-far unsuccessful bid for government approval to convert a military airbase into a second airport to serve Auckland, the nation's most-populous city.

``We're not doing it because we're a charity,'' Morrison told the New Zealand Herald in August. ``We're doing it because we're a New Zealand company and it's in our interests that New Zealand is better off and more competitive as a nation.''

Stagecoach

Stagecoach, the U.K.'s third-largest bus operator, bought its first New Zealand buses in 1992 from Wellington City Council after a law change designed to increase competition in public transport and encourage councils to sell their stakes in bus companies, ports, and power companies to pay for roading, water and sewerage.

The spate of asset sales that followed resulted in Canada's Transalta Corp. becoming one of the

[rmbbrave]

Right place, right time is at core of Infratil strategy

03.12.05
By Chris Daniels


On the face of it, last month's $250 million purchase of the bus and ferry company Stagecoach NZ is a departure from Lloyd Morrison's usual practice of buying into "pure infrastructure": utilities, ports and airports.

But Morrison's success at Infratil, which he founded in 1994, stems from a knack for accurately spotting changes in society or the economy and then picking a way of making money out of it. He is hoping Infratil's purchase of Stagecoach will be no different.

Morrison now finds himself coming to the attention of a wider constituency, this time one made up of taxpayers, ratepayers and public officials - all of whom want to know exactly where this "big picture vision" may be going.

Spend a few minutes listening to Waitakere Mayor Bob Harvey and you may be convinced we should all be hitching our wagons to the Morrison-Infratil star.

"This guy is a remarkable entrepreneur," says Harvey. "He's got a social conscience. He is highly regarded in the business world. He's a renaissance man. He likes music. He likes literature."

Harvey came to have close dealings with Morrison and Infratil during an unsuccessful collaboration to turn Whenuapai airfield into a commercial airport.

"He's aware. He is in tune and he understands that everything is connected - the transportation, air travel. He understands the minutiae of business, small and big," says Harvey. "I think he's probably one of the most impressive business people of recent times. I think there's a big picture in his mind."

Local councils, ratepayers, commuters and shareholders all have a greater stake now in how this "big vision" actually works in practice.

Through Stagecoach's bus and ferry operations, Infratil will be receiving many millions of dollars in public transport contracts.

Stagecoach is expected to get $48 million in public subsidies for Auckland buses alone this year, a combination of Land Transport New Zealand and Auckland Regional Council money channelled through Arta, which contracts public transport services.

Morrison points out that on top of all considerations at Infratil is creating value for its shareholders.

"That means performing on a longer-term basis. That's something that's not easy to do. We think that we're okay at our jobs, but we don't think we're any better than anybody else."

As close as we get to an over-arching vision or big picture from Morrison is an idea that no matter how clever you might be, you have to be in the right place.

"We've recognised that the most important thing for creating value is being in the right place. So we spend a lot of time trying to be in the right place."

Morrison has said it did not matter how good a manager was, if he or she was in a declining industry, there was little chance of success.

"Most people, whether they are a dairy owner, corporate magnate or even an artist in Switzerland, are better off than the best in Zimbabwe."

Infrastructure is undergoing significant change, not just in New Zealand, but everywhere.

"So we position ourselves for that and, within infrastructure, we've looked for sectors that have major change taking place over a period of time, plus good growth prospects.

"The reason we've done well over the past 12 years is because utilities as a whole have done well. The reason we've done well in TrustPower is because renewables have done well. The reason we've done well in airports is because most airports which have exposure to low-cost airlines have done well.

"So we don't attribute our performance to our own ability. We attribute our performance to being in the right place and, I believe, that's something you can't ignore."

The trick is in knowing exactly which part of the sector to put your money into. Accurately predicting the surge in European low-cost airlines is one thing, but knowing to invest in airports, not the airlines themselves, is where the skill of Morrison and his team can be seen.

From a h

[CJ]

quote:Originally posted by rmbbrave All of these investment add up to $1.47 billion but IFT's market cap is $822 million.

Is it fair to say IFT's SP is about half what it should be?


They hold a bit of debt remember. Not sure how much but a look at the last statutory aco****s should tell you. There new investments have also been debt funded so what ever debt taht had at the last stats has now increased.

Interesting this as IFT is essentually double levered. Take TPW, one of its main investments. It has say 50% equity, 50% debt. IFT then buys that for 50:50 equity debt. That means there investment in the assets of TPW have 25% equity, 75% debt. So as long as it keeps picking winners, this explains why it has had a good return. Just like increasing your leverage in your house in a rising market.

[Dazza]

been doing some reading
this share i like certainly... :D
along with PPL , i tink they will be soon the only NZL shares i will hold... along with NZO that is.

does IFT have a DRIP scheme?
and whats its LT divi %?

regards,
Dazza
been on the ASX boards too much -_-

[CJ]

quote:Originally posted by Dazza
[does IFT have a DRIP scheme?
and whats its LT divi %?


I must start of by apologising. If my typo in my message above offended anyone, well ...

As far as I know, IFT does not have a DRiP. There dayout ration has to date been pretty reliant on TPW as they will only pay a dividend if it is tax efficent (ie. has imputation credits) which means it has to be income from an NZ investment. It dont think wellington airport pays a dividend (to piss of wellington council and to pay for upgrades). Stagecoach may be able to pay an imputed dividend, but Statecoach has said that since it has held the NZ assets, it has never paid a dividend overseas (due to capital purcahses??). IRG says a gross div ratio of 4.2%.

[Binklebonk]

quote:Originally posted by CJ


quote:Originally posted by rmbbrave All of these investment add up to $1.47 billion but IFT's market cap is $822 million.

Is it fair to say IFT's SP is about half what it should be?


They hold a bit of debt remember. Not sure how much but a look at the last statutory aco****s should tell you. There new investments have also been debt funded so what ever debt taht had at the last stats has now increased.

Interesting this as IFT is essentually double levered. Take TPW, one of its main investments. It has say 50% equity, 50% debt. IFT then buys that for 50:50 equity debt. That means there investment in the assets of TPW have 25% equity, 75% debt. So as long as it keeps picking winners, this explains why it has had a good return. Just like increasing your leverage in your house in a rising market.


Triple leverage if you buy the warrnats.
Forbar calculates NAV at $4.36, so nice discount considering it's one of the best managed and performing companies on the NZX.

[Toddy]

The SP has historically traded anywhere inbetween a 5-10% discount to the NAV (which I calculate a little higher than FB).

So the stock looks cheap at the moment.

Do the maths again taking into account the signed off buyback over the next 11 months and your head would spin with the prospect of this share being re-rated by the markets very soon.

[CJ]

quote:Originally posted by Toddy
Do the maths again taking into account the signed off buyback over the next 11 months and your head would spin with the prospect of this share being re-rated by the markets very soon.


I hope so. I am seeing the effect of double and triple leverage as the share price and warrents drop in price.

It will be interesting to see what it does with its new investments. Two new airports that need a customer base built from scratch - not an easy thing, and a bus company (social infrastructure - a bit like airlines [:0]) which it needs to do something with, though it did buy on a good P/E so growth isn't as important as the other two. I think this brings a lot of uncertainty into the stock compared to the last few years. Glasgow airport still needs work but the other investments can just keep ticking.

[Snow Leopard]

The buyback began last Friday at $3.65 a share, the low for that day.

[Dazza]

has the difference btw teh headshares and the warrents been around $3?? all the time?

[rmbbrave]

Stagecoach agrees to buy Mana Coach Services
09 January 2006

Stagecoach New Zealand has entered into a conditional agreement to boost its stake in Mana Coach Services.


Stagecoach already owns a 26 per cent holding in Mana, and has now agreed to buy the balance.

The deal is conditional on Commerce Commission approval and completion of due diligence, with settlement expected by April 3.

Mana Coach Services is a family owned and managed business that operates Mana Coach Services and Newlands Buses.

Mana Coach Services operates commuter and passenger bus services within north Wellington, Porirua and the Kapiti coast, as well as a service to the Paraparaumu Tranz Metro rail line for Wellington city connections, and a coach charter business.

Stagecoach executive chairman Ross Martin said if the deal went unconditional, it would be business as usual for Mana and Newlands under existing management and staff.

Infrastructure investor Infratil bought Stagecoach New Zealand in November last year. The Mana purchase would be funded through existing Infratil bank debt facilities.

AdvertisementAdvertisementFor the year ended March 31, Mana Coach Lines expected revenues of about $14 million and earnings before interest, tax, depreciation and amortisation of around $5 million.

[shasta]

Dazza, you are quite right the difference between the Heads & B Warrants has hovered around the $3 mark.

The B warrants currently at $0.75 were around $1 when the SP was around $4.

Both look cheap at the moment IMO

[CJ]

The warrents can be exercised at $3.50 (I think) so any difference in the Warrent price + $3.50 and the share price represents a premium/deficit in relation to the value of the leveraged effect of the warrent. based on your observations, this is about 50c. THe smaller the difference, the higher people expect the shareprice to go.

[Toddy]

I'm not sure how much longer the sp will track sideways. IFT Management has been buying up large first class assets (apart from APX???) which will provide significantly increased cashflow for IFT.

Recent news where the sp has not reacted at all.
Share buyback plan implemented
TPW new investments
Purchase of 10% of APX
Purchase 90% Lubeck Airport
Purchase 100% Kent International Airport
Purchase 100% Isite
Purchase 100% Stagecoach NZ
Purchase of Mana Coach Services

And after all of this their debt to equity ratio is still well below the average. All current investments continue to make record profits.
Ryanair continues to carry record number of passangers and has massive growth plans which all looks good for GPIA.

I could go on forever.............

There has

[Snow Leopard]

Although some of these recent acquisitions should add to the profit from day one on the other hand other stuff needs several years of funding before a return can be expected.
So short term that probably averages out as neutral to negative.
IFT is a long term thing: That is how the management works.

[Toddy]

Here is something different, in todays London papers.
Glasgow has been voted Europes top tourist destination for 2006, the only European City to make the top 10 tourist destinations in travel guidebook Frommer's.

Glasgow Prestwick can look forward to another boomer year.

[warthog]

quote:Originally posted by Toddy


Purchase of Mana Coach Services

I thought Stagecoach pulled one out of the hat when they sold the Auckland bus operation to IFT and then significantly increased their stake in Mana.

[CJ]

quote:Originally posted by warthog


quote:Originally posted by Toddy


Purchase of Mana Coach Services

I thought Stagecoach pulled one out of the hat when they sold the Auckland bus operation to IFT and then significantly increased their stake in Mana.


IFT owns stagecoach so the purchase is one by IFT indirectly. I am sure IFT would have secured a non compitition agreement with Stagecoach UK for at least the next 2years if not 5.

With the expection of Stagecoach, most of these new investments will take some time to see if they will work. The UK airport currently has no customers so they need to build it up from scatch.

Stagecoach was a good purchase for a normal company but IFT will need to see growth in order to maintain its growth. As such, purchases like Mana are good and will see consolidition in the industry.

[Dough Boy]

May have mentioned before that the IFTWB warrants are what I consider a very good long-term investment that will offer superior returns over the ordinary share price in a very sound company, with the following reasoning:

Have a long-term 3.75 years run to exercise

Bought in over last six months at an average price of 79 cents which equates to an exercise price of 429 cents.

So if current SP of 385 cents conservatively appreciates an average 10% p.a. over next 3.75 years then final SP will be 1.43 x 385 = 550 cents. So warrant worth 200 cents.

This equates to an annual return on investment of 28.1% p.a.

Of course would sell out before exercise if warrants run too far ahead of SP based on a similar analysis to above.

[KJ]

DB-agree that warrants appear to be a good method for superior returns-bought earlier this week at 76c

Recall making a quick 50% plus on FTB warrants.

[Toddy]

IFT trading patterns broke a ceiling last night, obv up over recent trading sessions, its looking good for a period of growth in the SP.

Can one of you techies out there please confirm.

[Rif-Raf]

quote:Originally posted by Dough Boy

May have mentioned before that the IFTWB warrants are what I consider a very good long-term investment that will offer superior returns over the ordinary share price in a very sound company, with the following reasoning:

Have a long-term 3.75 years run to exercise

Bought in over last six months at an average price of 79 cents which equates to an exercise price of 429 cents.

So if current SP of 385 cents conservatively appreciates an average 10% p.a. over next 3.75 years then final SP will be 1.43 x 385 = 550 cents. So warrant worth 200 cents.

This equates to an annual return on investment of 28.1% p.a.

Of course would sell out before exercise if warrants run too far ahead of SP based on a similar analysis to above.


Amen and preaching to the converted as far as I'm concerned. Couple of other thoughts to add, if SP grows at the long term historic average of 20% then future share price of $7.65, warrants of $4.15!!!! - I believe this is to be a realistic outcome.
Other comment is that last NAV of underlying investments was somewhere around 4.30-4.50, this stock should be trading at a premium not a discount!!

disc - happy holder from back when they floated and loaded to the gunnels with IFT warrants.

[Phaedrus]

Toddy,
IFT remains in a steady uptrend. There is a confirmed trendline in place and current price action is well above this trendline. On Balance Volume is in an uptrend. The resistance that has held since last October has been breached. Boring eh?
When stocks are in a long-term uptrend like this, TA can be used to signal good entry points. Here are two oscillators with their attendant "Buy" signals marked by arrows. I should point out that both oscillators are plotted using their default values. Optimization of their time periods yields even better results.
http://h1.ripway.com/Phaedrus/IFT112001.gif

[Toddy]

Cheers Phaedrus

Yes, very boring looking at an uptrending chart unless ofcourse you are heavily invested.
After a quiet period over recent months everything is pointing towards a new trading range for IFT. And the premium on the warrants has come right back over the past 6 months making them exceptional value at these levels.

[shasta]

B Warrants, definitely B Warrants!

Toddy, IFT along with GPG appear to be the steady but not spectacular performers with enough overseas exposure to counteract any down turn in the NZ economy.

I sold out of the heads a wee while back but hold the warrants and see these as a long term hold.

Nice graph though & suggests heads &gt;$4 & warrants back towards $1 in the near future.

My only question with IFT is there stake in APX, i dont get that "play".

Is this an isolated short term play by IFT?

[Toddy]

The APX play. A question that can only be answered in the future.

Same Chairman.
Maybe Cardiff is the real thing.

No one is sure, there were better options out there for IFT if they wanted exposure to oil and gas.

Based on todays market I would no put my money on IFT exercising its options to buy more APX at $5 per share. If they end up exercising then I will eat my hat.

[CJ]

my only concern with the warrents is yhe effect of dividends. if they increase the pay out rate (which they could with increased IC coming from stagecoach) the value of the warrent is effected.

what if they pay a special div etc.

[k1w1]

CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.

Disc: Hold IFT, IFTWB and IFTIZA

[Dough Boy]

quote:Originally posted by k1w1

CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.

Disc: Hold IFT, IFTWB and IFTIZA


If they reset in Sept 06, too short time frame =&gt; too much risk

[kura]

CJ, IFT's stated policy is to pay out div to the extent of available Imputation credits, and yes, stagecoach purchase may lead to higher dividends, ( & have negative implications to warrant holders) but have you ever thought of the implications of share buy back on warrant holders ?? This would surely benefit warrants, and offset the dividend payment to some extent.

There are probably formulas/calculators out there to put a dollar value on the impact of paying a divi & having buyback, on an option/warrant, but calculations are too much for my fragile brain to comprehend at moment. However IFT have seemed to have done both historicaly & I never heard anyone complaining of unfair treatment of heads v warrants.

[CJ]

Agree that buy back is beneficial for warrent holders.

I think no one has complained in past because ther ehas been no major shift. If IFT doubled its div payout following stagecoach, then it could become an issue.

The good thing about the wellington airport investment is that IFT ar being pricks and withholding all dividends since 1/3 would go to the local council.

[shasta]

My preference for investment companies like IFT & GPG is to reinvest cashflow into acquiring more profitable businesses cheaply & increasing the EPS & therefore SP, not the dividend pay out.

For that reason alone a buyback is a better option, as company that pays out too much in dividends is saying that its management cannot find a better use for it!

IFT also has a good chunk of debt & a whole host of bonds which also would be better off being reduced than paying out a dividend.

Why pay interest on debt, whilst returning more cash as dividends is beyond me!

CJ - I personally would like to see IFT buyout the Wellington Council's stake in the Wellington Airport

[k1w1]

There is an increased prospect of dividends due to the Stagecoach purchase, especially as it may lead to other bus company purchases.

Increased dividends will benefit IFTIZA holders but not IFTWB holders. Doughboy the reset date in Sept 06 is an option to purchase but these are rolling warrants that reset for a further period based on a new price which includes an interest component. So you can roll them over if you choose to.

Just another way to diversify exposure to IFT.

[rotsevni]

IFTIZA is very thinly traded. Not sure if there is enuogh liquidity to trade this stock so expect to hold it a while

[Toddy]

IFT has been accumulating more stock in Energy Developments Limited since November 05 according to the Australian stock exchange disclosure today. Now over 22% holding.

Good work.

[Toddy]

Can anyone from Windy Wellington shed any light on the poor Wellington Airport passenger numbers.

Are the punters starting to tighten their belts in the Capital.

[Toddy]

Steady. Focus on investments over the period resulting in a 20% increase in the asset base.

QUARTER: IFT: Infratil Result for 9 Months to 31 December 2005 12:11pm
IFT
08/02/2006
QUARTER

REL: 1211 HRS Infratil Limited

QUARTER: IFT: Infratil Result for 9 Months to 31 December 2005

RESULT FOR THE NINE MONTHS TO 31 DECEMBER 2005

Infratil's quarter to 31 December 2005 was among the most notable in the
Company's history. It saw the acquisition of a major new business, Stagecoach
New Zealand, and the material broadening of the Company's European airport
operation with Kent and Lubeck Airports being added to Glasgow Prestwick.
This resulted in an approximate 20% increase in Infratil's assets and will
provide a sound base for future shareholder returns.
In the short term costs associated with making these investments have
impacted reported results. For the nine months Infratil's Earnings before
Interest, Tax, Depreciation and Amortisation increased 6% to $49.8 million,
however higher start up costs and losses associated with the new
acquisitions, resulted in Operating Profit After Tax and Before Investment
Realisations declining to $13.1 million from $20.2 million in 2004. Last year
there were also investment realisation gains of $22.7 million. This year
realisations added $0.2 million.

Infratil experienced a similar fluctuation in reported returns a few years
ago when it divested from energy distribution and invested the proceeds in to
what was then lower cash earning energy generation and airports. The wisdom
of this swap is apparent. Over the nine months to 31 December 2005 Infratil
received cash distributions from TrustPower and Wellington Airport of $23.8
million and $22.9 million respectively. These investments cost $94 million
and $104 million respectively.

After 31 December 2005 the acquisition of Angaston Power Station in South
Australia was announced. While this is a small increment, it is complementary
with Infratil's investment in the fast growing Australian energy retailer
Victoria Electricity. Infratil has the expertise required to develop a
material Australian energy business and perceives there to be considerable
value in its incremental investment approach.

In making the above noted investments Infratil has assumed further debt, a
mixture of Bond and bank funding. Since 31 March 2005 debt as a percentage of
Infratil's capitalisation has increased from slightly under 24% to just over
40%. This is still conservative given Infratil's assets and the reliability
of its cashflows. Also, none of Infratil Airports Europe, Victoria
Electricity nor Stagecoach has any external debt and both TrustPower and
Wellington Airport have modest levels of debt funding.

Looking forward Infratil expects its core mature investments to continue to
perform well. Considerable effort will be made to build activity and value at
the new investments. Progress at both Kent and Lubeck has surpassed initial
expectations, but it is still going to be a few years before these
investments contribute to reported earnings. Stagecoach is both a mature
investment and an opportunity to add value. Its long term success will be
based on being the lowest cost provider of excellent public transport in New
Zealand. If it can achieve this it will be well placed to expand its
franchise in what is certain to be a strong growth sector.

Released 8 February 2006
End CA:00127127 For:IFT Type:QUARTER Time:2006-02-08:12:11:53

[rmbbrave]

Infratil posts earnings drop as buying spree tolls

08.02.06 2.05pm
By Rachel Pannett


Infrastructure investor Infratil today posted a sharp drop in nine-month profit, as it re-jigged its investment portfolio to include transport company Stagecoach New Zealand and a string of new airport and energy assets.

Infratil said its net after tax profit, before investment realisations, for the nine months to December 31 fell 35 per cent to $13.1 million, from $20.2 million in the same period a year earlier.

Last year's result was buoyed by investment gains of $22.7m, compared with just $200,000 in the current year -- reflecting a change in direction as Infratil embarked on a buying spree.
Infratil bought Stagecoach's bus services and Fullers ferries in November for $253m, including acquisition costs.

In the year to date it also bought Kent International Airport in Britain for $47m, completed a conditional acquisition of 90 per cent of Lubeck Airport in Germany and bought an 11 per cent stake in small oil and gas explorer Austral Pacific for $9m.

After balance date, Infratil purchased Angaston Power Station in South Australia.

Infratil said the acquisitions had expanded its asset base by 20 per cent and put it in fine fettle for making solid shareholder returns in future, despite the short term earnings hit.

Shares in Infratil eased a cent to $3.84 on the news, against a year high of $4.15 and a low of $3.23.

Earnings before interest, tax, depreciation and amortisation rose by 6 per cent to $49.8m during the period.

Infratil said it experienced a similar fluctuation in reported returns a few years ago when it divested from energy distribution and invested the proceeds in to what was then lower cash earning energy generation and airports.

That strategy appeared to have paid off, with Infratil receiving cash distributions from TrustPower and Wellington Airport of $23.8m and $22.9m respectively for the nine month period.

Infratil's other investments include a 66 per cent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport in Scotland, an 88 per cent stake in Victoria Electricity and a 35 per cent holding in TrustPower.

Debt levels increased from 24 per cent of market capitalisation as at March 31 to 40 per cent, although this was still conservative gearing, Infratil said.

Looking ahead, Infratil expected its mature investments to continue to perform well, and considerable effort would be made to build activity at its new investments.

Progress at Kent and Lubeck had "surpassed initial expectations" but it would be a few years before the pair contributed to earnings.

Stagecoach was a mature business and Infratil has previously said it would be earnings positive in the year to March 2007.

[Snow Leopard]

Refering to the previous post:
With no disrespect to either Rachel Pannett, or indeed our very own rmbbrave, but if it seems that that R. Pannett, who presumably actually gets paid for this sort of thing, actually expended less effort in re-writing the Infratil announcement than rmbb did in copy and pasting it to this site.
However she probably earns her pay packet for such sensational bits as the headine "Infratil posts earnings drop as buying spree tolls" and the words "Shares in Infratil eased a cent to $3.84 on the news".

Disc: hold IFT, am not a fan of the Stagecoach purchase and am absolutely gutted that the share price has "eased a cent".

Disc2: just being me :D

[CJ]

quote:Originally posted by Paper Tiger


am not a fan of the Stagecoach purchase and am absolutely gutted that the share price has "eased a cent".

Have gone back a few pages and you have never elaborated why? I admit I am not convinced either. I assume they are looking for consoldiation and growth in the industry but have not seen much evidence of consolidation, though it is only early days.

The results look ok to me. Is it surprising that new investments aren't yeilding yet. This company makes longterm plays.

[Toddy]

Big plays in the Airport Utilities here in Europe/UK again today. Luton was sold last year and now we have a possible bid for the BAA assets which include Stanstead, Gatwick and Heathrow(approx £8.3 billion). Glasgow Prestwick is a high value asset for IFT and I would not be surprised if there have been potential investors sniffing around.

Stagecoach. I think that it was a great play by the IFT Management. Synergies to be made with the Mana purchase (even if small)and looking at the bigger picture, Auckland currently has large transport congestion issues (Aucklanders feel free to disagree). All as it takes is for the Council to implement road tolls or a congestion charge similar to the one here in London and Stagecoach will become the best play in IFT's short history overnight.

[Placebo]

quote:am absolutely gutted that the share price has "eased a cent".

Yes a poor effort that Ms Pannett. The word she was clearly looking for was "plunged" or perhaps "plummetted". Or as a rewrite she could have said "Investors punished Infratil at the bourse, hammering the price down 1c".

Must do better at the hyperbole.

Yours

Editor

[Snow Leopard]

Poor day share price wise, I notice that a few shares traded at $3.65.
I am interested to see whether there will be a buyback notice...

[Snow Leopard]

CJ.
Sorry but I have only just noticed your question from the 8th.

My objection to the Stagecoach Acquisition is two-fold.
Firstly and leastly, I think they paid a few dollars too much given the current earnings.
Secondly, the area of public transport in Auckland and to a lesser degree Wellington is a political minefield. The risks of detrimental, to Stagecoach, interference by one or more of the innumerable bits of local and national government is too great in my opinion.

[Toddy]

IFT need something to move the SP along again. Drip feeding airport statistics on a monthly basis about the Wellington domestic passenger numbers is turning out to be a negative exercise.
A good testing result from Austral on Cardiff or the likes should spark the SP back into action.

Share buy back. There has not been any action from IFT on that front for some time and we are 9 months through the financial year.

Stagecoach. PT, IFT love the political game and have a proven track record of being able to talk with Regional and Central Governments with some success.

[Sideshow Bob]

AA, not sure where you got the PE from, but this is from the NZX website:

Analytics: 21 Feb, 2006
52-week high/low 4.15 / 3.23
Price/Earnings (P/E) 26.8058
Times cover (TC) 1.3140
Earnings per Share (EPS) 0.1380
Dividend yield 4.2356
Net tangible assets (NTA) 2.410

[Toddy]

AA

IFT is an Investment Company. Cashing up some POT shares realising p&l under NZ Accounting Standards would render your PE ratio anaylsis redundant.

[Snow Leopard]

quote:Originally posted by Toddy

IFT need something to move the SP along again. Drip feeding airport statistics on a monthly basis about the Wellington domestic passenger numbers is turning out to be a negative exercise.
A good testing result from Austral on Cardiff or the likes should spark the SP back into action.

Share buy back. There has not been any action from IFT on that front for some time and we are 9 months through the financial year.

Stagecoach. PT, IFT love the political game and have a proven track record of being able to talk with Regional and Central Governments with some success.

Agree that monthly figures present a consistent drip, drip, drip of mildly negative news and this could well be affecting the share price in the short term.

IFT bought back 61,500 shares at average $3.65 on 9th December 2005, the SP has not traded that low since, until yesterday. So I am interested to see.

I remain sceptical with regard to the politics of urban public transport.

[Rif-Raf]

Want positive news on IFT look at the chart for it's biggest asset TPW

Closing SP today of $6.34

AA - IFT is mainly an assets play, buying loss making airports at firesale prices and taking 3+ years to turn them around will not result in attractive PE's but the wealth creation potential is huge.

[Toddy]

This is why I think that Stagecoach will be a winner for IFT. Its not a case of 'if' but 'when' tolls are going to be introduced on the Auckland roading network. Catching a bus to work will then become a more viable option for many people and expect the funding allocation to be increased for Public Transport accordingly.

Tolls needed to unclog Auckland roads
22 February 2006

Tolls will be needed if Auckland's traffic jams are to be cleared in the next 10 years, highway building agency Transit New Zealand said today.
Transit said without any funding from tolls, completion would be significantly delayed.

[Sideshow Bob]

Also Toddy, the dollar is finally coming down. As petrol goes up, then will start pushing people Stagecoach's way.

At the moment, about $1.46/litre for unleaded, but will be under pressure as/when the dollar continues it's downward slide.

[Toddy]

Stagecoach and growth.

'As part of the plan, Auckland's bus fleet will double from 900 to 1800 and the number of trains will increase from 34 to 50.'

Rugby World Cup ignites plans to relieve city's gridlock worries

26.02.06
By Teresa O'Connor


A $600 million plan to double Auckland's public transport capacity has been fast-tracked in a bid to relieve gridlock woes in time for the start of the Rugby World Cup.

As the eyes of the world will be on Auckland in 2011, transport chiefs have decided to accelerate plans originally scheduled for completion in 2016 with projects around rail, buses and park-and-ride facilities.

Funding will come from central government, regional rates and cash reserves. Rates are not planned to increase by more than 5 per cent.

The figures do not include electrification of the rail network, part of a wider 25-year upgrade plan.

The only fresh project is the creation of a shuttle service from Britomart to Kingsland and building a transport hub around Eden Park.

Auckland Regional Holdings - which manages assets of $1.17 billion from the former Infrastructure Auckland - will provide more than $100 million toward the $600 million bill. The Government, meanwhile, has agreed to provide 100 per cent funding to expand the rail network, including double-tracking many lines in time for the tournament.

Essentially the plans revolve around more trains and tracks, improved rail facilities, twice the number of buses, shuttle services and more park-and-ride options.

The ultimate aim is to increase patronage from 52 million passengers a year to 100 million.

As part of the plan, Auckland's bus fleet will double from 900 to 1800 and the number of trains will increase from 34 to 50.

Although Albany has not been confirmed as a Cup venue, more park-and-ride facilities are planned.

The key projects in the $600 million transport plan are completing the North Shore busway by 2009, double-tracking the western railway line by September 2008 and improving capacity at Newmarket station.

Much of the focus will be around Auckland's Eden Park where some of the key matches of the 2011 World Cup will be played. Plans are to increase the frequency of train services into nearby Kingsland station as well as more regular bus services into Mt Eden.

The plans are unlikely to cause any major traffic disruption over the next five years as most will not affect existing public transport services.

Auckland Regional Land Transport Committee chairman Joel Cayford predicted little difficulty in meeting the 2011 deadline.

"Our new goal is to boost those public transport levels in time for the Rugby World Cup to help make it a world-class event.

"Bad traffic congestion would be a poor image for Auckland and New Zealand and leave a lot of overseas visitors very grumpy," he said.

Auckland mayor Dick Hubbard welcomed the moves, saying it was imperative the city had a world-class public transport system by 2011.

"One quarter of the world will be focusing on Auckland during that period. We need to showcase this city and public transport will be part of that. It will also be a fantastic asset for the city afterwards."

Eden Park Trust Board chief executive John Alexander said he was encouraged about what was planned for the event and the area.

[Snow Leopard]

376,194 shares bought back by IFT at $3.70 yesterday

[Snow Leopard]

Nice to see IFT gaining some traction, maybe on the back of recent rises in TPW and/or the buyback coming into operation at the $3.70 level.
I stand a chance of getting back into the black with my last warrant purchase. :)
Disc: IFT & IFTWB

[Toddy]

Agree PT. TPW and POT doing well, Prestwick figures should be good, Wellington figures should be better (based on Auckland domestic figures), positive noise from APX re Cardiff etc. I would expect to see IFT trade in a new range $4.10-20 within days.

[KJ]

Agree with you guys and think that ultimately Stagecoach should be good for IFT- bought their warrants a few mths back and still trying to figure the correlation between Warrants and Head share prices.

Toddy-hope you are right about the share price.

[Toddy]

Looking good for Stagecoach. This will get a fair number of Aucklanders back onto public transport.

Tolls of $6 proposed for Auckland Harbour Bridge, $3 to enter city

17.03.06 1.55pm UPDATE
Click on 'more pictures' above for maps showing various proposals


A government report on tackling Auckland's congested roads suggests charging motorists $6 to cross the Harbour Bridge.

The Ministry of Transport report makes a number of suggestions for charging people to drive into the city, including the Harbour Bridge option.

Other proposals are $3 to enter a cordon - essentially the Auckland isthmus - at 15 charging points, or charging motorists $5 a day to enter the central business district.

The maximum daily charge under all the proposals would be $6, and the tolls would apply only between 6am and 10am, Monday to Friday.

Another of the five schemes in the report would involve a $10 a day additional charge on parking on both private and public property.

The report was released today by Transport Minister David Parker, Finance Minister Michael Cullen and Transport Secretary Robin Dunlop.

"It's time to recognise that we cannot pave our way out of traffic," said Mr Dunlop. "These schemes represent a balance between the need to reduce congestion and raise revenue while minimising the social, environmental and economic impacts to Aucklanders."

Mr Parker said: "The government has an open mind and has not taken a position on this. Depending on what comes out of the consultation process, the government may decide to look at the options further or decide to take no further action.

"That is why it is important that Auckland has its say because congestion is a major issue for the city, as it is in most large cities."

A six-week consultation period starts today and ends on 28 April. Submissions can be made to the Ministry of Transport, which will be consulting with local government, business groups, non-government organisations and the public.

The ministry will then report back to ministers on the outcome of the consultation.

[Snow Leopard]

So IFT has gone and bought Mana coaches prior to Commerce Commission approval.
I guess CCOM has been so busy throwing it weight around at the power companies and Telecom that IFT has got fed up waiting for them to respond.

[COLIN]

I see that Morrison & Co have been appointed by the Super Fund to manage their infrastructure investments - something like $270m allocated to that sector of the Fund already, and obviously heaps more to come as the Fund snowballs. On the surface there is a potential conflict of interest, with Morrisons running IFT, but the Guardians of the Fund will have that bolted down. Nevertheless there must be some ability to put some into IFT, otherwise they would be precluding investment in one of the most potentially lucrative infrastructure vehicles around.

[CJ]

COLIN - major coflict of interest. If they find a great investment, who gets if first - IFT or Superfund.

Where is the announcement. Are they going to be doing direct investment for the superfund (which is there expertise) or just investing in IFT type shares.

[Toddy]

CJ

I'm sure that you can work that one out on your own.

[COLIN]

quote:Originally posted by CJ



Where is the announcement.


It was in the "Daily Business Brief" from "The Independent". I haven't seen it covered anywhere else. I agree that, on the face of it, there would seem to be a major conflict of interest, and I would be interested to see how that has been dealt with - do "Chinese Walls" really work?

[Toddy]

Guys

From what I have read the deal is that the Fund has the opportunity to invest in investments that Morrison and Co have passed over as not fitting the IFT investment strategy.

When Morrison are looking around they come across a number of opportunities that aren't suited for IFT. This is where the Fund comes in. They are not competing for the same asset.

I'm sure that the Chinese Walls will apply however to cases where the Fund could be used to corner competitors for IFT's advantage.

[kura]

Just a silly question here, I noticed in news that a few small holders have been excercising their warrants, to my simple mind, this is an excercise in value destruction, just can't see why anyone would do it ??

Disc: recently purchased some warrants.

[Snow Leopard]

Mildly dissappointed that the warrants are kicking the heels around 90c whilst the heads head for 410c.

Still more than 3 years till exercise date.

[COLIN]

quote:Originally posted by kura

Just a silly question here, I noticed in news that a few small holders have been excercising their warrants, to my simple mind, this is an excercise in value destruction, just can't see why anyone would do it ??

Disc: recently purchased some warrants.


Maybe something to do with winding up estates and distributing to beneficiaries. Or perhaps just uninformed investors.

[COLIN]

quote:Originally posted by Paper Tiger

Mildly dissappointed that the warrants are kicking the heels around 90c whilst the heads head for 410c.

Still more than 3 years till exercise date.

Agree. The warrants should be about 110 at this stage.

[Toddy]

The warrants have never been cheaper.

Three years still to run at at this price the punters think that the IFT head will go from $4.09 to $4.40 over that period.

Are we now saying that IFTs 20% year in year out returns are going to drop to 2.5% for the next three years.

The market cannot ignore TPW at $7, POT at $5.40, ENE at $4.30, fx gains on offshore revenue etc forever.

IFT have failed on the buy back front so far though. But one thing is for sure, it will come.

[Snow Leopard]

quote:Originally posted by Paper Tiger

Mildly dissappointed that the warrants are kicking the heels around 90c whilst the heads head for 410c.

Still more than 3 years till exercise date.

warrants trying to catch up but the heads are running away (96/413):)
Why the sudden enthusiam?

11:21 Now 99 and 422 Something must be in the wind.

[Toddy]

Warrants even cheaper today.

There is zero premium in these now.

So, they are worthless, or to those who can spot a bargain, they are 'free'.

[Snow Leopard]

I am not sure about zero premium, but 100 vs 425 is 325 with a strike price of 350 in July 2009, but you would expect the options to trade at 110-ish
Mid august last year when the heads hit 415 the options were 104 so all other things being equal you would expect better.

However option pricing is a subjective beast so I guess people are dialling in bigger divvies, lower interest rates or a lower volatility into their calculators.
Never mind there is still tomorrow.

regards

Paper Tiger

[CJ]

quote:Originally posted by Paper Tiger
However option pricing is a subjective beast so I guess people are dialling in bigger divvies, lower interest rates or a lower volatility into their calculators.

Stagecoach should provide larger divies - since making good cashflow and a NZ investment so creates IC.

[Toddy]

Plenty of profit takers around for the warrants today. Who can blame them taking the cash.

The Stagecoach report released today looks good.

[Zaphod]

Infratil advises that the Commerce Commission has filed proceedings in the High Court in Wellington seeking to injunct New Zealand Bus Limited's acquisition of the majority shareholding in Mana Coach Services.

http://www.nzx.com/market/market_announcements/by_company?id=129487

[kura]

I sold my warrants yesterday, a quick profit was too hard to resist ( In @.90 out @1.02 ) approx 13% in less than a week, sure I also think warrants are woefully undervalued, and I probably sold out too early, but will wait & see what happens !
But do love that volatility.

[Rif-Raf]

quote:Originally posted by kura

I sold my warrants yesterday, a quick profit was too hard to resist ( In @.90 out @1.02 ) approx 13% in less than a week, sure I also think warrants are woefully undervalued, and I probably sold out too early, but will wait & see what happens !
But do love that volatility.

sold out too early - they're 105, not that you'll be unhappy.
The gap between the warrents and heads is now only 20c.

The bulletin about Stagecoach was very encouraging and well worth a read. I think that is going to turn out to be a wonderful investment for them.

ENE,TPW,POT & Stagecoach are humming along nicely.
The airport investments are slightly mixed at present. Early days for Kent and Lubeck.
WIA/GPIA a bit softer stats at present, however should continue to trend up over long term horizon.

Disc - warrant holder

[Jay]

Looks like you are posting in the future Rif-Raf
The site must still have there time wrong[:I]

By my watch it is 13:12 on the 7th.

[Toddy]

The timing of the Stagecoach purchase was perfect. Stagecoach wanted £100m for Stagecoach NZ. The kiwi/GBP fx rate was at 2.51 on the day of the purchase. (the absolute bottom of the current currency cycle)

Since then the Kiwi has depreciated against GBP and USD. To enter the same market and buy all of the rolling stock (buses) at todays prices would cost considerably more.

[bbob]

Dear All,
What do you think's driving the price up? Yes the timing of the Stagecoach transaction was good and the exchange rate will help the overseas investment income (which is relatively little), but there doesn't appear to have been much else new to cause the recent rise. Be grateful for the thoughts of IFT watchers.
Cheers
Bbob

[Toddy]

Bbob

The IFT SP historically has traded around a 10% discount to NAV. This continues to be the case today.
The SP did stutter for a while after the Stagecoach purchase as the market could not work out the strategy or the 'bus' business.

[CJ]

IFT has 5 years to use the stagecoach name. How much value is in the name. Just read an article that IFT wants to build up confidence in bus travel to increase customer numbers. IF so should they change names/brands earlier or does that fact that only one bus company works on each route mean that brand name is irrelevant.

[Snow Leopard]

They could change the name today. When you are waiting for a bus you first see it head on so it is mainly a windscreen and a route number/destination.

[Toddy]

IFT purchased a company called 'isite' late last year. They basically do the graphics for billboards/buses etc.
Check out their website, has examples of costs for advertising on the outside of buses.

The branding exercise is not new to IFT. They recently rebranded Wellington and Glasgow Prestwick Airports with some success. I'm looking forward to see what they come up with for the bus business.

Keep an eye on the APX Douglas 1 drill results also, remember IFT have a 11% interest in APX with options to buy more.

[Rif-Raf]

quote:Originally posted by Paper Tiger

They could change the name today. When you are waiting for a bus you first see it head on so it is mainly a windscreen and a route number/destination.

Not according to the recent bulletin about the bus biz. It talks about how successful/important it has been to uniquely brand busses to specific routes to gain consumers familiarity and usage. The days of every bus being yellow are long gone.

[Snow Leopard]

quote:Originally posted by Rif-Raf


quote:Originally posted by Paper Tiger

They could change the name today. When you are waiting for a bus you first see it head on so it is mainly a windscreen and a route number/destination.

Not according to the recent bulletin about the bus biz. It talks about how successful/important it has been to uniquely brand busses to specific routes to gain consumers familiarity and usage. The days of every bus being yellow are long gone.


Sorry, I was posting from my experience as a bus user and not some marketing expert.

[Zaphod]

There could still be some room for advertising internally. I remember the ghastly old busses in Hamilton (before New Plymouth's 4 year old fleet was poached in the early 1990’s) used to have adverts that scrolled across LED signs installed near the driver.

I haven't seen this used anywhere for years.

[Toddy]

Zaphod

Is this what you are talking about....

Internal Signage
For as little as $8 a day you can display your advertisement on two advertising panels - one each side of the bus interior. Each panel measures 740mm x 305mm.

All on the isite website. Have a look at what is available. Its quite interesting.
http://www.isitemedia.co.nz

[Toddy]

BAA airport stats are down for March at all of its Scottish Airports due to the great weather at the beginning of the month. Year on year they are up at all airports so expect something similar from IFT.

Also just read this. The branding exercise does NOT always go to plan. Never seen a drunken Scotsman in my life!. This is right out of the FTB text book on advertising. Good laugh!

The airport is privately owned by Infratil, a New Zealand investment company which also owns Wellington International Airport. In April 2005, Infratil completed a major £3m refurbishment of the terminal building, and also controversially rebranded the airport using the phrase "Pure Dead Brilliant", taken straight from the Glasgow Patter. Some of this rebranding has been controversial, in particular the redecoration of the airport bar. The bar was rebranded in February 2006 with a logo depicting a man in a kilt, unconscious with an empty bottle of whisky. Despite objections that it promoted the wrong image of Scotland to foreign visitors and embarrassed local travellers, the airport management insisted the logo was "fun and visually stimulating". However, the logo was removed on 3 March 2006, only several weeks after its introduction, after the intervention of the South Ayrshire Licencing Board who said the logo trivialised excessive drinking

[Toddy]

This is what IFT supporters want to hear. From tvnz news.

Council backs congestion charges




Auckland road charges proposed

Apr 13, 2006

Auckland city councillors have endorsed a strategy to charge people for using the region's roads in a bid to address its transport crisis.


Congestion charging and parking levies are options mooted under the plans which could see motorists face fees of up to $50 a week.


The council's Transport and Urban Linkages Committee is supporting further investigation of the road pricing options.


Its chairman Richard Simpson says the charges are a way of both raising the funds to improve public transport and reducing congestion.


Simpson says the full council will consider the issue at the end of the month and a formal submission will be made to the Ministry of Transport.

[Toddy]

This is fantastic, and the great 'kiwi leave your car at home' trend has just started. Wait until petrol prices approach $2 a litre.
IFT will have to react quickly to ensure that the punters are happy.

Anyone out there catch the bus in Welllington? What is the current level of service like?

Commuters opt for buses, trains
15 April 2006
By ADAM RAY

Public transport operators are struggling to cope with soaring passenger numbers, as rising fuel prices force commuters to ditch their cars for buses and trains.


Petrol prices have gone up 24 cents a litre, and diesel by 30 cents a litre, this year.

Tranz Metro passenger numbers had grown by 7 per cent since last year, partly because of increased fuel costs, passenger manager Ross Hayward said.

The growth meant hundreds of extra passengers were catching commuter trains every morning, pushing already busy Tranz Metro services toward their capacity.

"The peak ones, they could not get any more full," he said.

Morning peak services were at their seating capacity, though there was usually standing room for passengers.

Passenger growth had been four times the expected level, Mr Hayward said. The only way to improve capacity was to put on more trains.

Greater Wellington regional council intends to boost passenger transport spending, but it will take three to four years to start replacing Tranz Metro's aging fleet.

"It's unfortunate it was not dealt with a few years ago," Mr Hayward said.

The council's land transport strategy has called for $1.3 billion worth of spending on public transport in the next decade, with $1.7 billion earmarked for roading projects.

Stagecoach executive chairman Ross Martin said bus passenger numbers in Wellington during March were up 4 per cent on the same time last year. "That's good for us. It implies people are voting with their feet, out of their cars."

March was normally a busy month for bus services as students returned to university. The extra passengers meant many buses were packed.

Stagecoach was negotiating with the regional council about putting on more services to cope with the demand, he said.

[Toddy]

The trend is your friend. Another article re public transport. This time from another bus company.

Fuel price boost for buses

19.04.06
By Owen Hembry


The rising price of fuel is boosting the business of bus service provider InterCity Coachlines.

Chief executive Malcolm Johns said results for the Easter period were yet to be determined but initial bookings had been 23 per cent up on last year.

Johns said rising petrol prices was leading more people to leave their cars at home. "We've seen a relatively steady rise overall," he said.

"We estimate something in the order of 6 to 8 per cent in the last 12 months of our passenger growth was fuel related."

The company carries about 1.1 million passengers each year and operates 130 daily services to 600 cities and towns nationwide.

There was no reason to believe this trend would not continue, he added. "If you are running your own vehicle you bear 100 per cent of the cost increase. If you're sitting on a coach with 40 others then the increase is shared among 40."

[Zaphod]

Could someone please explain the relationship of Hamilton's Go-Bus to IFT? I understand from previous posts on this thread, that (quote) "infratil executive chairman Lloyd Morrison said Morrison and Co, which manages Infratil's investments, had become a 41 per cent shareholder in Waikato bus company Go Buses. The experience led it to develop an interest in Stagecoach a couple of years ago."

Does this mean that IFT have a stake holding in Go Bus, or is this something that Morrison & Co have done independently?

[rmbbrave]

"CONGESTION" "TRAFFIC JAMS"

NZers don't know the meaning of the words!

I live in a city where the fastest form of above ground transport is the motorbike.

- the second fastest is a bicycle

- the third fastest is a car

- and the bus comes last.

And when it is snowing and the roads are covered in ice, walking is faster then driving. And riding bicycles or motorbikes is only for the foolhardy.

[Anna Naum]

I thought Lloyd & Co owned the stake in Hamilton outside of IFT, that is IFT has no holding in the Hamilton company.

[Toddy]

Rmbbrave

I live in Central London, St Johns Wood. The fastest way for me to get to work would be to drive our car`and park in the parking building by work. The congestion charge has worked wonders.
However, I do not drive but catch a tube/bus that is jam packed, smelly and full of every nationality except the English. The underground and bus companys make a packet.

Why use public transport, its simple, ££££...... public transport is cheaper than having to pay a congestion charge + parking + 98 pence a litre.

That's the catch, especially now with oil at $74 USD. And Kiwi's love to save a buck. The trend of using more public transport has started even without any Auckland traffic solutions on the table.

[Gryffyn]

Thanks for bringing this one back to the fore.

[Gryffyn]

Many STers hold this?

Worried about the possible coming AIR cartel?

Looks like a good steady performer otherwise.

Disc: none but considering

[Sideshow Bob]

Have a look at the B warrants Gryf. Currently trading at about $1.12, with $3.50 payable 10/7/09.

Heads trading at $4.37, and showing steady growth over last few years & well placed.

Disc: Own some B warrants, but not enough!

[Toddy]

Here is a copy of the email I received from Wellington Airport explaining the proposed code share.


Number 1 - May 1, 2006

Qantas - Air New Zealand Code Share

On 12 April 2006, Qantas and Air NZ announced a plan to "code-share" on the Tasman. This alert explains what the code share is and what the Government should do.

What is a code-share?

Usually a code-share is an arrangement to allow one airline to show its code or flight number on another airline's flight, on a route where they do not compete. For example, Air New Zealand code shares with United Airlines on some trans Tasman flights where they are never likely to compete. The proposed code-share is for routes where Qantas and Air NZ are by far the dominant competitors. That is not normal at all.

What are Air NZ and Qantas proposing?

Air NZ and Qantas want to create a cartel. That is, they want to collude on prices and services for all routes between Australia and New Zealand. They also want to be able to collude on payments to travel agents and a range of other matters. They will set up a joint committee between the two airlines to make decisions on what they will jointly offer customers. They will not compete and the deliberations of the joint committee will not be scrutinised.

Didn't they try this once before?

In 2003 Qantas and Air NZ proposed an "alliance" that would have allowed extensive collusion in many markets. It was rejected by the Commerce Commission as highly detrimental to New Zealand. It was rejected by the Australian Competition and Consumer Commission (ACCC) as detrimental to Australia. On appeal, the High Court upheld the Commerce Commission's decision.

So what's different this time?

As far as consumers are concerned, not much. The worst elements of the former proposal remain - collusion on prices and schedules on one of New Zealand's most important markets. Although the agreement does not allow the cartel committee to set prices and schedules for other markets, there is nothing to prevent them from making unilateral decisions not to challenge a 'friendly party' on domestic routes.

Won't the Commerce Commission put a stop to it?

This time, the Commerce Commission may not get a say. There is an anachronistic exemption from the Commerce Act to allow the Minister for Transport to approve code shares. It was never envisaged that this would extend to a highly anti-competitive cartel, but that exemption exists and it is being used in that way.
There is no such exemption in Australia, so (as in most countries) it will go to the competition regulator. But the ACCC is under no obligation to take the interests of Kiwis into account.

Should the Minister of Transport make the decision?

Most developed countries recognise that when influential commercial interests seek to collude, it is better to have an independent and expert commission examine the impacts on consumers. When the Government owns the airline, it is even more difficult for the Minister to be independent and be seen to be independent.

What should the Government do?

If this code-share really is good for New Zealand as the proponents say, why not let that point be tested openly and rigorously?
The Government should do two things:
" Refer the current application to the Commerce Commission for a transparent investigation and advice;
" Enact legislation to get rid of the exemption from the Commerce Act for anti-competitive code shares.

What can I do?

Write to the Minister of Transport, the Minister of Commerce, and your local MP, and tell them you want New Zealand's interests examined by the Commerce Commission. Airlines are making a case to pursue their commercial interests. Be sceptical of claims about the potential benefits of the cartel and assurances that all will be well.

[Gryffyn]

quote:Originally posted by Sideshow Bob

Have a look at the B warrants Gryf. Currently trading at about $1.12, with $3.50 payable 10/7/09.

Heads trading at $4.37, and showing steady growth over last few years & well placed.

Disc: Own some B warrants, but not enough!


SSB me old china - are you saying I have to buy at 1.12 and pay 3.50 for something worth 4.37 now?

sure, growth has been good - and I like the share - had round $2 and sold at $3 a while back (damn!) - and I like their stagecoach angle but the airport (WN) thing worries me.

[Sideshow Bob]

quote:Originally posted by Gryffyn

SSB me old china - are you saying I have to buy at 1.12 and pay 3.50 for something worth 4.37 now?

sure, growth has been good - and I like the share - had round $2 and sold at $3 a while back (damn!) - and I like their stagecoach angle but the airport (WN) thing worries me.


You've got it me old Garden Gate! ;) Shell out $4.62 for something that is trading at $4.37. Bargain!!

It's only got 3 years for the shareprice to go up 5.8%!!!

Seriously though, think there is a bit more info further back on this thread regarding valuation of warrants.

[Gryffyn]

Cheers - and thanks for the calculation - that is kinda tempting.

[Toddy]

Gryffyn

Management signed off a buyback programme around the time of the last agm. This has yet to be fully implemented and should be a driver for the SP in the coming months.

As for the cartel, I would say that the Labour Govt will be running like scared rabbits from this one after yesterdays Telecom interference.

PS not guilty of voting Labour in the last election.

[Gryffyn]

Toddy, interesting thought. Id their a time-frame on commerce commision decision over code share? Methinks that with AIRs losses on this run they will get their way esp with govt being a stakeholder in this case.

[Gryffyn]

SP a little soft recntly (but so are many others).

Delicate balance as to whether high fuel prices encourage more people to use those buses they just bought versus the increased cost of running them.

[Gryffyn]

down 7 today - I might wait a little bit...

[Toddy]

Gryffyn

The IFT SP has a tight correlation with TPW. TPW was up today on good volumes compared to the norm. Watch closely,

[Zaphod]

I've had several conversations with various people about the costs of running their car lately, and most never factor the cost of WOF, Reg, R&M, Depreciation, etc. into the equation.

Perhaps that's something that Stagecoach need to educate the public about [:p]

[CJ]

Zaphod - If you own a car, even if you bus to work, you still need to pay WOF and Reg and depreciation (to an extent - partly linked to age, partly to kms).

People wont get rid of their cars, they will just drive them only when they have to.

[Toddy]

Looking good for the latest Trustpower plan for Otago wind farms.


TrustPower focuses on Otago wind farm site
06 May 2006

TrustPower has high hopes for its planned Otago wind farm now it has turned its attention away from the top of the South Island.


The Tauranga power company set aside this week its proposals for a big wind farm in Marlborough, citing several factors that would have made the location economically unviable.

TrustPower operates the 68-megawatt Tararua wind farm near Palmerston North, which is regarded as the best-performing commercial scale wind farm in the world.

It will concentrate on its wind farm scheme at Lake Mahinerangi, about 40 kilometres west of Dunedin.

It is also looking at a site near Gore, in Southland.

The Mahinerangi wind farm will be up to 300MW, enough to power 150,000 homes. It is next to TrustPower's multi-power station Waipori hydro scheme, which already generates 80MW of power from Lake Mahinerangi.

Spokesman Graeme Purches said the company was close to securing resource consents and the wind farm could be working within two years.

AdvertisementAdvertisementTrustPower was excited about Mahinerangi, he said. "It's at least as good as Tararua. The majority of the turbines will be on land already owned by TrustPower and there are existing transmission lines."

Mr Purches said the price of overseas-manufactured turbines had risen for New Zealand generators because of increasing international demand and the downward trend of the New Zealand dollar.

A two- or three-megawatt turbine now cost about $2 million.

TrustPower was unlikely to buy turbines being manufactured by Christchurch company Windflow Technology, he said.

Windflow's patented 500-kilowatt, two-blade units cost about $700,000 each.

"Windflow doesn't have a proven record yet, has no certification and its turbines are too small.

"There's a real market for them for one, two or three units in really remote areas. There's no future for people building wind farms using 500kW turbines."

National Party energy spokesman Nick Smith said TrustPower's decision to abandon the Marlborough wind farm highlighted the mess the Government was making in the electricity sector.

"New Zealand needs more power, and we particularly need more generation in the top of the South Island, but the Government's Kyoto and transmission policies need revising if we are to get new investment."

"The Government's transmission policy model hammers South Island generators and is a real disincentive to developing new renewables here."

[Zaphod]

quote:Originally posted by CJ

Zaphod - If you own a car, even if you bus to work, you still need to pay WOF and Reg and depreciation (to an extent - partly linked to age, partly to kms).

People wont get rid of their cars, they will just drive them only when they have to.


Yes, I agree. There is however, a direct correlation between the resale value of a car and the number of Km’s travelled. So that needs to be taken into account also.

Plus, if you are a two card family, perhaps it is time to look at selling the second car and either car pooling or catching public transport.

[Toddy]

Cullen sees buses as the solution for Auckland transport problems and wants Auckland leaders to get a hurry on. Show us the money Auckland.


Cullen tells Auckland to pay more for roads

16.05.06
By Mathew Dearnaley


Finance Minister Michael Cullen has delivered a blunt message to Auckland's political leaders to pick up more of the region's transport tab with heftier rates rises.

He expressed irritation at a meeting with the Auckland Mayoral Forum at a proposed 5 per cent annual cap on regional rates rises over 10 years.

One official at the closed-door Beehive meeting said Dr Cullen told the mayoral delegation, led by Auckland City Mayor Dick Hubbard and joined by regional council chairman Mike Lee, that "putting rates up 5 per cent is not enough".

Dr Cullen is also understood to have indicated a preference for buses over rail to get Auckland moving.

"He said the future lies with roads and buses - that rail will never work," said an official. A second source claimed the minister was "rough" on the Aucklanders.

Last week's meeting, which Dr Cullen called to discuss new funding sources for Auckland's transport needs, was also attended by Prime Minister Helen Clark, new Transport Minister Annette King and Auckland Issues Minister Judith Tizard.

[Links]

Infratil profit down 68% on European investment losses
By NZPA
Monday 15th May 2006
Infrastructure investor Infratil today said its annual profit had fallen by 68% due to losses incurred by its European airport investments.

The company posted a net profit after tax of $7.7 million in the year to March 31, compared with $23.7 million in the same period last year.

Last year's result was boosted by investment realisations of $22.7 million compared with $200,000 this year.

Infratil owns 100% of Glasgow Prestwick Airport in Scotland, Kent International Airport in England, and Lubeck Airport in Germany, as well as a large stake in Wellington Airport.

Ebitda (earnings before interest, tax and depreciation) for the European airports in the year to March 31 were $1.7 million, compared with $10.6 million in the previous year.

A fully imputed final dividend of 7.5 cents per share - up 36% on last year - will be paid on June 12.

During the year Infratil has paid $252 million for Stagecoach Plc's bus services in Auckland and Wellington and Fullers Ferries.

It also bought a power station in South Australia, and made additional incremental investments at Wellington Airport, TrustPower and in Victoria Electricity.

TrustPower contributed $28.6 million to Infratil over the year, up from $25.7 million the previous year.

The earnings contribution (after minority interests) from Wellington Airport was $24.0 million, from $23.7 million last year - a result chairman David Newman said was "satisfactory in the context of weak passenger activity and operating cost pressures".

Over the year, Wellington Airport invested $25.8 million in new facilities.

Newman said a cautious approach was being taken in progressing further development.

"Air New Zealand, Wellington Airport's main customer, has announced it will significantly reduce capacity if it gains regulatory approval to form a cartel on the Tasman routes with its main competitor Qantas."

Newman said this year had been one of considerable progress for Infratil and it was in a strong position to continue growth through the year.

Shares in Infratil fell 8c to $4.40 today, having ranged between $3.36 and $4.54 over the past 12 months.