IFT - Infratil

Also announced for information.

From NZX site


Wellington Airport October 2007 Traffic Statistics

International passengers grew 2.5% in October from the previous year, despite a 7.9% fall in capacity. The average airline load factor on international services for October was very high at 84.5%.

Year to date growth in international passengers now stands at 5.7%, with seats falling by 4.4% in the period since April 2007. The high load factor demonstrates the severe capacity constraints existing for Wellington services. It is inevitable that without more international capacity Wellingtonians will be increasingly forced to travel through Auckland or Christchurch to cross the Tasman, or worse still will not travel at all.

Domestic passenger volumes grew 1.3% in October on a 2.0% reduction in seat capacity. The average domestic load factor in September was 2.7% above the previous year. Year to date, domestic passengers remain marginally above the previous year despite a 2.8% fall in seat capacity.

Considerable work was undertaken during October to ensure that facilities were available to accommodate Pacific Blue's domestic start up in November. Reconfiguration works to departure lounge facilities will enable Pacific Blue to operate from a new aircraft gate that was completed in November. The capital development ensures that appropriate facilities also remain available for Air New Zealand and Qantas operations. WIAL will have to continue its capital development programme to ensure that it can accommodate further competition in the market. At the launch of its domestic services, Brett Godfrey, Pacific Blue's co-founder and Chief Executive confirmed that it would be considering regional services in New Zealand. Air NZ's domestic jet fleet expansion is now also evident with a leased aircraft from Thompson Travel appearing on the domestic network.

Progress on other development projects has occurred as follows:

Works to produce a 40% increase in public car parking capacity are underway with the full increase to be available by the end of November. At the same time a new car park operating system has been implemented that will provide greater efficiencies for travellers including ease of exit from the car parks.

Retail development has continued in the terminal, with the Travelex outlet now open in its new location adjacent to international departures. Development of the previous site will occur in coming months.

Construction of the Northern runway safety works has commenced with completion in 2008.

The Airport Retail Park is now fully leased. Construction of the remaining outlets continues with all stores expected to be trading early in the new year.

http://www.infratil.com/wial_financial_summary.htm

Infratil Airports Europe October 2007 Traffic Statistics

http://www.infratil.com/gpia_financial_summary.htm

Glasgow Prestwick Airport

Glasgow Prestwick handled 228,893 passengers during the month, up 1% on October 2006 and a 2% improvement on September's total.

Growth once again stemmed from Ryanair's Riga and Derry services, both introduced in the last year, and Wizz Air's Katowice route which was introduced in September. This was partly offset by some softness in domestic London services.

Ryanair launched a new daily service to George Best Belfast City Airport and a twice weekly service to Kaunas in Lithuania at the end of the month.

Elvis returned to Glasgow Prestwick in October. Prestwick Airport was the only place he ever set foot in the UK and his return was to open the contemporary Elvis themed airside bar. Elvis (in the form of award-winning Gordon Hendricks) performed concerts on consecutive nights for VIP guests and staff. Just prior to Elvis touching down, the Scottish Minister for Transport, Infrastructure and Climate Change, Stewart Stevenson MSP, unveiled a marble and brass floorplate commemorating Elvis' 1960 visit and welcomed the new retail and infrastructure upgrades at the airport.

The airport handled 2,617 tonnes of freight in October, which represents a 5% increase on September's total but 9% down on the prior year. The year to date freight volume remains ahead of the equivalent period in 2006 by 3%.

Kent International Airport

Kent International handled 4,173 tonnes of freight during October - a new record for the airport since Infratil's acquisition in 2005. This represents a significant freight tonnage increase of 164% on the prior year and 232% on the September total.

The growth was driven primarily by the introduction of daily MK Airlines services, along with consistent traffic from other regular customers and the arrival of a new customer at the airport: Rock-it Cargo.

Rock-it specialise in the shipping of band and stage equipment for global concert tours. This is an area of the business with good future potential given the flexible facilities, lack of congestion and the airport's highly committed team.

Rock-it used the airport for two 747 charters during October and more movements are planned for later in the year.

Luebeck Airport

Flughafen Luebeck handled 55,061 passengers in October, 14% down on the prior year but 4% up on September's total.

Again, soft loads on the London route were a major factor in the negative result against the prior year.

A new Ryanair service to Barcelona Girona started at the end of the month and appears to be attracting strong support from both the local market and, perhaps less obviously, inbound Spanish visitors.

It has been confirmed that Sky Airlines will operate weekly charter flights to Antalya in Turkey from April 2008.
S

Right, onwards and upwards here for IFT. Its always an interesting result from an accountants point of view. If you follow generally accepted accounting practices then one could conclude that a 49% drop in the bottom line does not look good.

However, IFT is actually a much more powerful and stable beast than the higher p&l reported this time last year. Operational cashflow profit is through the roof (cash in vs cash out the door) and there is a much larger asset base to launch the business off going forward.

The next six months will (should) be in contrast to the first.
- No EnergyOne writedowns.
- Victoria Energy back on track to turn a profit as electricity spot prices return to more appropriate levels.
- TPW stable with new generation coming on line plus announcement of new projects.
- Wellington Airport is doing very well. The European business is flat lining but the underlining asset value is growing.
- Stagecoach. You can read the frustration from IFT management around the politics involved with this buiiness. Not looking for any major growth story.
- The AIA saga should play itself out.
- No one really believes that IFT had a capital raising for the fun of it. They will have a target in mind for sure. What is it?

Overall, I cannot see the SP recovering in IFT under the current environment. However, all could change with the announcement of a new purchase.

anybody surprised to hear that IFT have been shorting the US stockmarket with put options.

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Originally Posted by peat

anybody surprised to hear that IFT have been shorting the US stockmarket with put options.

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Not at all surprised. Lloyd is one smart cookie.

well my point wasnt so much whether it was a smart thing to do , time will answer that question and indeed it may well be. But surely most investors will think its a infrastructure company not a mini hedge fund or speculation vehicle. Of course the argument is that with so much investment in the various economies where these assets exist then hes merely hedging against a US led glbal downturn. But if there is no downturn then and the infrastructure assets thrive then hes wasted resources.
I dont know how well this is signalled to his investors tho. just raising the question to see what others think. Unless these strategies are well signalled to the investors I think its kind of incorrect as its placing a limit on growth

Quote:

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Originally Posted by peat

well my point wasnt so much whether it was a smart thing to do , time will answer that question and indeed it may well be. But surely most investors will think its a infrastructure company not a mini hedge fund or speculation vehicle. Of course the argument is that with so much investment in the various economies where these assets exist then hes merely hedging against a US led glbal downturn. But if there is no downturn then and the infrastructure assets thrive then hes wasted resources.
I dont know how well this is signalled to his investors tho. just raising the question to see what others think. Unless these strategies are well signalled to the investors I think its kind of incorrect as its placing a limit on growth

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Peat

I view IFT as a Risk Management Company first and an Infrastructure company second. Derivatives don't have to be a one way bet, but more of a risk adverse option. IFT is heavily involved in derivatives via its Energy asset businesses and Lloyd often talks about 'optionality'. Don't worry, IFT Management are not gambling away shareholders wealth on one way bets that go wrong.

This is exactly why I can sleep at night, knowing that IFT Management are minimising risk and doing all of the hard work for me.

Agree with your post (above) Toddy. It could be rightly argued that it would be tantamount to "indulging in speculation with shareholders funds" to be exposed to international equity positions without judicious hedging under current conditions.

Check out the volumes over the last couple of days...and this morning.

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Originally Posted by Caesius

Check out the volumes over the last couple of days...and this morning.

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Yeah, I was half expeting to see a buy back notice from IFT. But its not them. Interesting in these tough times.

Things are starting to look up for IFT again.

Rudd loves the environment and the Aussie spot electricity prices have come right back with the recent rain.

The dry spring in the South Island is starting to have an impact on the NZ spot market. I hope that it stays dry and the South Islanders can enjoy a nice sunny summer for a change.


From the Herald.
Dry weather sends spot price of power soaring
5:00AM Monday December 10, 2007

Major electricity consumers are being told to prepare for significant price rises as dry weather causes South Island hydro lake levels to drop drastically and wholesale power prices to shoot skyward.

Spring rainfall has seen Central South Island hydro lakes fall to their lowest December levels in 15 years, reduced river flows in many places and led to parched farmland.

Hydro storage lakes were only half as full as this time last year, TrustPower community relations manager Graeme Purches said yesterday.

Wholesale power prices rose 30 per cent to $62 a kilowatt hour in the past week and Mr Purches believed prices could soar as high as $200 kW/h if hydro lakes continued to empty.

Businesses and large industrial companies buying electricity on the spot market - where prices change every half hour - would be the first to feel the pinch.

There would not be any immediate impact on residential electricity consumers because they purchased power on the contract market, which changed annually.


Mr Purches said demand for electricity had increased in the South because of the growing number of dairy farms and irrigation units.

Power companies were trying to conserve hydro lake levels by curtailing generation and importing power from the North Island.

"The Cook Strait power cable has been extremely busy carrying power south ... since the start of November. It's very unusual for this time of year," Mr Purches said.

Dr Jim Salinger, principal scientist with the National Institute of Water and Atmospheric Research, said yesterday that farmers should prepare for a "tough drought".

"We're in the first decent La Nina for a while. It's arrived," he told the Otago Daily Times from Queenstown, where he spoke at a climate change seminar.

While a hot La Nina summer was ideal for sun-seekers, it could have a drastic effect on farmers, Dr Salinger said. Soil moisture was already at mid-summer levels, "which means there isn't any".

Water restrictions have been imposed in the Central Otago and Clutha districts.

I was down at Lake Tekapo last week and went down to the waters edge. It was quite a walk.

I have never seen the lake so low and because I hadnt read any news media warnings thought everything must be OK.

I know am finding out things are a lot more serious than we have been led to believe. I think Aunty Helen better change her mind about banning new gas fired power stations...or does she prefer coal?

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Originally Posted by bermuda

I was down at Lake Tekapo last week and went down to the waters edge. It was quite a walk.

I have never seen the lake so low and because I hadnt read any news media warnings thought everything must be OK.

I know am finding out things are a lot more serious than we have been led to believe. I think Aunty Helen better change her mind about banning new gas fired power stations...or does she prefer coal?

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And the real joke is that under Helen's policys the South Island generators are paying for the Cook Strait cable when all of the money is currently going into the back pocket of the North Island generators.

Huntly has plenty of coal piled up so everything is under control, at a price ofcourse.

Bermuda, keep the walking up as there is nothing like eye balling the real thing. I look forward to your next report. Don't forget to apply that sunscreen.

Quote:

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Originally Posted by Toddy

And the real joke is that under Helen's policys the South Island generators are paying for the Cook Strait cable when all of the money is currently going into the back pocket of the North Island generators.

Huntly has plenty of coal piled up so everything is under control, at a price ofcourse.

Bermuda, keep the walking up as there is nothing like eye balling the real thing. I look forward to your next report. Don't forget to apply that sunscreen.

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Toddy,
Here's my next report.......

Buy VPE and VPEO and BOW...see the latest news announcements and today's SHG report.SHG is going to build an LNG plant fueled by their Lacerta CBM

And that's right next door to BOW and VPE's Don Juan CBM field. In fact I think it is a continuous caol bed.

Check it out. You wont be disappointed.

Infratil's full interim report is now available on their web site.

http://www.infratil.com/downloads/pd...nterim2007.pdf

It sounds like its been a busy time down at Wellington International Airport.

Wellington Airport November 2007 Traffic Statistics

Domestic passenger volumes grew a significant 13% in November following the
commencement of domestic services by Pacific Blue. As Pacific Blue only
commenced services half way through the month the actual growth rate for a
full month of operation would be double this. Importantly there is no
evidence to date that any cannibalisation of the existing market has occurred
with all of the Pacific Blue passengers being additions to the market.