IFT - Infratil

[POSSUM THE CAT]

Toddy the last report I saw was bus business not performing to expectations so if no suprises you should expect the status quo a gradual easing in share price

[Zaphod]

Toddy the last report I saw was bus business not performing to expectations so if no suprises you should expect the status quo a gradual easing in share price

Perhaps we should just wait for the re-nationalisation of public transport. I'm sure that the taxpayer would happily purchase the business and provide Infratil with a handsome profit

[Toddy]

Perhaps we should just wait for the re-nationalisation of public transport. I'm sure that the taxpayer would happily purchase the business and provide Infratil with a handsome profit

Its already happening via the NZ Superfund buying up IFT. IFT have wasted their money painting the buses all sorts of bright colours when they are all going to end up repainted 'communist' red.


Re-nationalisation of assets, FTA's with China, selling assets to China, increasing minimum wage, over taxing the wealthy etc. Anyone else see a trend here.

[Caesius]

http://www.nzx.com/market/market_ann...pany?id=164146

Can anyone decipher this? I have trouble reading these...

[COLIN]

http://www.nzx.com/market/market_ann...pany?id=164146

Can anyone decipher this? I have trouble reading these...

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what. Took advantage of the depressed share price following Clark/Cullen's rejection of the Canadian bid.

(Point to ponder: If Govt is so keen to "buy back the farm" a la Toll/Railways, when assets are considered "strategic", why didn't they offer shareholders in AIA the same opportunity, at the price the Canadians were prepared to pay?)

[Viking]

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what. Took advantage of the depressed share price following Clark/Cullen's rejection of the Canadian bid.

(Point to ponder: If Govt is so keen to "buy back the farm" a la Toll/Railways, when assets are considered "strategic", why didn't they offer shareholders in AIA the same opportunity, at the price the Canadians were prepared to pay?)

Amen to that!
The govt should put up the money or shut up~
Well, I am looking closely how IFT would play out though~ since it has similarity with AIA, but again its quite different it feels~ perhaps because they are down in Wellington~

[CJ]

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what.

It is the superfund doing the buying (comparing the holdings to the previous disclosure). IFT interest hasn't changed. I am pretty sure IFT has said it wont increase.

[Toddy]

This is one way to boost the IFT SP. TPW share buyback.

TrustPower Limited Audited Financial Results for the year ended 31 March
2008:

Operating surplus after tax of $98.1 million compared with $102.4 million as
restated for IFRS adjustments, for the same period last year.

EBITDAF of $208.0 million representing a 6 per cent increase on the previous
year.

Board of TrustPower has approved an on-market buyback of up to five million
shares for a period of six months. Further details can be found under the
announcement entitled "On-Market Share Buyback" which is attached.

Dividend declared of 15 cents per share payable 6 June 2008.

Interest on Subordinated Bonds payable on 13 June 2008:

TPW020 (ISIN: NZTPWD0002S7)
Amount per security 8.5%
Record date 30/5/2008
Payment date 13/6/2008

TPW030 (ISIN: NZTPWD0003S5)
Amount per security 8.3%
Record date 30/5/2008
Payment date 13/6/2008

TPW060 (ISIN: NZTPWD0006S8)
Amount per security 8.5%
Record date 30/5/2008
Payment date 13/6/2008

Directors Nominations Close 5pm, 3 June 2008. Further details can be found
under the announcement entitled "Further details can be found under the
announcement entitled "On-Market Share Buyback" which is attached.

Attachments:

Media Release RE TPW Audited Results
Appendix 1 Public Financials
PWC Auditors Report
Appendix 7 Dividend Payable 6 June 2008
Appendix 7 Subordinated Bond Interest Payable 13 June 2008
Media Release re Directors Nominations Close
Share Buyback

Market Announcement
Thursday, 15 May 2008

TrustPower Limited Audited Financial Results for the Year Ended 31 March 2008

TrustPower's consolidated operating surplus after tax was $98.1 million for
the year ended 31 March 2008, compared with $102.4 million as restated for
IFRS adjustments, for the same period last year.

Earnings before interest, tax, depreciation, amortisation and fair value
movements on financial instruments ("EBITDAF") grew by 6 per cent to $208.0
million from $196.4 million in the previous year.

Operating revenue of $681.5 million increased 9 per cent on the previous year
as a result of higher energy prices charged to those customers paying spot
market prices together with a $12.7 million revenue contribution from
telecommunication services. Total electricity volume sold was 4,540 GWh
compared with 4,575 GWh in the year to 31 March 2007. Customer numbers
increased to 222,000 at 2008 year end from 219,000 a year earlier.

The New Zealand electricity market has been characterised by lake storage
levels and inflows that have been below average for much of the 2008
financial year. However, spot electricity prices during the first nine
months remained below average but increased significantly in the final
quarter.

Generation production of 2,018 GWh for the year was up 4 per cent on the
previous year but around 270 GWh down on expected long term average. Hydro
production was down around 220 GWh or 13 per cent on long term average and
North Island hydro production contributed around 185 GWh of this shortfall as
a result of record low inflows into a number of catchments. Wind production
was up 272 GWh on the previous year due to nearly a full year's contribution
from Stage III of the Tararua Wind Farm which was commissioned in July 2007.
However, wind production was also down 50 GWh (8 per cent) on expected long
term average. This was due to a combination of lower than expected wind
speeds over the second half of the financial year and some Stage III turbines
experiencing post commissioning operational issues which have caused lower
than expected availability. The Company expects this situation to be
resolved shortly.

Operating expenses including energy and line costs increased 10 per cent on
the previous year, primarily driven by higher wholesale electricity costs.
High frequency keeping costs in the North Island due to low availability of
North Island hydro generation supply in the last quarter of the financial
year together with higher generation production costs have also contributed
to increased operating expenses.

Net profit after tax, return on average shareholders' funds, was 7.9 per cent
(last year 8.6 per cent).

Group operating cash flow was $161.0 million for the 2008 financial year
versus $161.2 million in the previous year.
Taking into account the significant shortfall in production from the
Company's own generation assets and high wholesale prices for the final
quarter of the financial year, the result was satisfactory and again
demonstrates that the Company's trading and risk management practices are
sound.

Included in accounts payable and accruals is an amount of $102.7 million
relating to milestone payments due under the Snowtown Stage I wind turbine
supply contract. A similar amount was held in year end cash balances
following settlement of foreign exchange hedge contracts matching the wind
turbine supply contract obligations.

Debt (including subordinated bonds) to debt plus equity was 34.3 per cent at
year end versus 29.5 per cent in the previous year. This increase is due to
the Company debt funding the capital expenditure programme of the last two
years which has included the 93 MW Tararua Stage III wind farm, the 6 MW
hydro expansion at Deep Stream in Otago and the partial construction of 98 MW
of wind generation for Stage I of the Snowtown wind farm in South Australia.

TrustPower continues to maintain high levels of committed credit facilities.
Including subordinated bonds the Company currently has NZD equivalent of 950
million of committed debt funding in place. Given the current uncertainty in
financial markets the Company decided to refinance early $100 million of bank
facilities due to mature in July 2008 and to establish an additional $100
million three year bank facility loan.

TrustPower's New Zealand generation development programme continues to
progress satisfactorily despite resource consenting taking longer than
expected for many development opportunities. Following commissioning of the
Deep Stream hydro enhancement project the Company owns 594 MW of renewable
generation capacity in New Zealand producing on average around 2,320 GWh per
annum.

Good progress is being made on the development of the 98 MW Snowtown Stage I
wind farm. Civil works have been completed and to date six wind turbines
have been erected and commissioned. The balance of the planned 47 2.1 MW
Suzlon wind turbines are expected to be progressively erected and
commissioned over the next three months. If all goes to plan the project
could be completed three months ahead of schedule which would be a pleasing
outcome for the Company's first Australian renewable generation project.

Expensed generation development costs for the year were $9.5 million compared
with $10.3 million in 2007. This expenditure reflects a range of costs
including preliminary design, environmental investigations and resource
consent application costs over a number of hydro and wind development
opportunities in both New Zealand and Australia.

Legislation to enact the New Zealand Emission Trading Scheme ("ETS") is
currently under review by a parliamentary select committee following public
consultation. The likely introduction of the ETS for the electricity sector
from 2010 together with a proposed ten year moratorium on thermal generation
should provide a supportive environment for progressing renewable generation
opportunities. However, the Company remains frustrated by the lack of
progress towards amendment of High Voltage Direct Current ("HVDC") pricing
methodology which is required to provide a level playing field for new
renewable generation in both North and South Islands. If this issue is not
dealt with it is difficult to see how the Government's objective of 90 per
cent renewable generation by 2025 will be achieved efficiently as many of New
Zealand's best future wind and hydro sites are located in the South Island.

TrustPower currently has resource consent applications pending for over 550
MW of hydro and wind generation projects in New Zealand. TrustPower is
working hard to ensure that it is in a position to progress renewable
projects should the Company conclude that shareholder value is likely to be
created. However, should this conclusion not be able to be reached due to
regulatory uncertainty or negative policy impacts, then the Company will aim
to protect the value of its development rights as longer term options.

Forecast capital expenditure in the 2009 financial year for committed
generation development projects is expected to be around $70 million which
mostly relates to the completion of Stage I of the Snowtown wind farm.

Generation development costs to be expensed in the 2009 financial year are
projected to be around $7 million.

The Board has approved that the Company be able to buy-back up to 5 million
of its shares over the next six months. Given the current volatility in
financial markets the Board considers that the Company should have the
flexibility to buy back its shares where there are opportunities to add value
for existing shareholders. Approval from shareholders will be sought at the
Annual Meeting for an annual share buy-back programme of a similar scale.

The Board has also agreed that Directors enter into a fixed share purchase
plan whereby Directors will allocate a percentage of their directors' fees
and automatically instruct a share broker to purchase shares in the Company
at market price following the Company's annual and interim announcements.
Fixed share purchase plans are quite common internationally and the Board
views individual ownership by Directors in the Company as a positive way of
ensuring that Board and shareholders' interests are closely aligned.

The Directors are pleased to announce a final dividend of [15] cents per
share, partially imputed to 11 cents per share, payable 6 June 2008 (record
date of 23 May 2008). This together with an interim dividend of 15 cents per
share provides a total payout of 30 cents per share for the 2008 financial
year compared with 27 cents per share for the 2007 financial year,
representing dividend growth of 11 per cent.

Shareholders should be aware that dividends for the foreseeable future are
likely to be partially imputed as the Company will pay relatively lower
levels of tax in the early years following the commissioning of wind farm
developments as the result of higher tax depreciation levels available for
wind farm assets. The Company expects that a minimum level of 60 per cent
imputation is likely to be achieved on dividends over the next two to three
years.

On 1 May 2008 Transpower, as the independent system operator, advised that
despite the recent rain hydro storage levels remain a significant concern to
the industry and as such the industry is continuing with contingency planning
efforts to ensure a secure supply of electricity this winter. At the time of
this announcement New Zealand hydro lake levels were around 60% of average
storage for this time of year.

While it is too early to make predictions about the 2009 financial year, it
is worth noting that the Company remains in a satisfactory position to meet
its customers' needs this winter.

[Zaphod]

INFRATIL RESULTS
FOR THE YEAR ENDED 31 MARCH 2008
20 MAY 2008

Infratil had a successful year as measured by the value created in its core
businesses, the positioning of those businesses relative to the trends which
have been propelling their growth, and the management of increased risks
arising from the financial markets.

However, Infratil fell short in terms of delivering returns for shareholders
over the period. An Infratil shareholder who reinvested all dividends and
bonus issues would have suffered a 16.5 per cent fall in value in the year to
31 March 2008 (+31 per cent in the previous year), roughly equivalent to the
average fall of the New Zealand market. Despite this, Infratil's cumulative
return since its formation 14 years ago remains over 20 per cent per annum
after tax. The performance of the last year shows how financial market
conditions can overwhelm outcomes, even as energy, airport and public
transport businesses deliver good results.

Infratil was proactive in the management of its exposure to financial risk
before the market upheaval. Infratil undertook its first capital raising in a
decade, completed a subordinated perpetual debt issue having raised $240
million, and renewed and expanded its bank facilities. Infratil also actively
managed its financial market risks with partial hedges against falls in the
value of markets.

The economic, financial and regulatory environments continue to present
challenges. The economies in which Infratil's businesses operate are slowing,
financial markets have not yet stabilised and Government regulatory
initiatives are unpredictable. Notwithstanding, each of Infratil's core
businesses is expected to increase its value over the coming year and to
reflect the attractiveness of sectors experiencing long term growth which are
relatively immune to the business cycle. It is anticipated this will drive
better returns for shareholders and vindicate their support for the $176
million equity raising Infratil initiated in 2007.

FINANCIAL RESULTS (IFRS)

For the year to 31 March 2008, Infratil's earnings1. were $315.9 million
(2007 $157.1 million). The operating surplus2. was $87.8 million (2007 $32.4
million) and the net earnings after including realisations, impairments, fair
value adjustments, tax and minority interests was a small loss of $1.7
million (2007 profit $68.2 million).

FINANCIAL POSITION

As at 31 March 2008, total consolidated assets were $4.4 billion (2007 $3.9
billion). Net group bank debt was $792 million (2007 $548 million) and
subordinated bond debt was $961 million ($1,028 million).

Infratil's Shareholders' Funds were $1.47 billion (2007 $1.53 billion) and
after minorities $733 million (2007 $809 million). This value reflects the
market value of all Infratil's listed investments except TrustPower, which is
consolidated, while unlisted assets are included on the basis of their book
values. Shareholders' Funds declined by $144 million as a result of the mark
to market of Infratil's listed investments. The fall in value mainly related
to changes in the share price of Energy Developments and Auckland Airport,
and has been taken through reserves.

SHAREHOLDERS

A final dividend of 3.75 cps fully imputed will be paid on 16 June 2008 to
all shareholders with ordinary shares, on the register as at 5.00 pm on 6
June 2008. For holders of partly-paid shares, the final dividend will be
1.875 cps fully imputed. Because of the discounted rights issue, this is
effectively a small increase over the final payment last year.

In respect of the year, total dividends on ordinary shares amounted to 6.25
cps fully imputed. Shareholders also received, on a one for five basis, a
free warrant and a right to acquire, at a discounted value, a further
Infratil share. The second $1.00 instalment on these shares is due to be paid
between 14 July 2008 and 8 August 2008.

CAPITAL AND RISK MANAGEMENT

Over the year the number of shares on issue increased by 219,899,090 when
Infratil split its shares and by 3,837,448 through the exercise of warrants.

In May 2007 Infratil closed its issue of Perpetual Infratil Infrastructure
Bonds (PIIBs) when a total value of $240 million had been raised.

Infratil and wholly owned subsidiary net bank borrowing as at 31 March 2008
was $397 million from $192 million a year earlier. Infratil has total bank
facilities of $660 million.
Offshore assets comprised approximately 50 per cent of Infratil's equity
market capitalisation and were unhedged to changes in the value of the New
Zealand dollar.

Recognising the extreme financial market risk which pertained during the
year, Infratil purchased some insurance against the possibility of this
volatility increasing. As at 31 March 2008 this hedge gave rise to a "fair
value" benefit of $12.3 million. This is not intended to be an ongoing
feature of Infratil's operations, but risk identification and management is a
hallmark of Infratil's approach.

SECTOR DEVELOPMENTS AND TRENDS

Infratil's businesses are in sectors benefiting from global trends in urban
and air mobility and energy. While the year presented economic and financial
challenges, the trends driving Infratil's businesses were encouraging.

Renewable energy: New Zealand is to introduce pricing of greenhouse gas
emissions from 2010 and is targeting 90 per cent of electricity generation
from renewable sources by 2025 (now about 70 per cent). Australia has now
committed to the Kyoto Treaty and pricing of greenhouse gas emissions on a
similar timetable to New Zealand's.

Australian energy: The deregulation, privatisation and restructuring of the
energy market continues.

Airports: Competition on New Zealand trunk services initiated by Pacific Blue
spurred domestic growth and indicated the potential for international growth
when the current shortage of long-haul aircraft is alleviated. European air
travel was impacted by economic conditions but remains robust with low-cost
and freight airlines growth supported by significant new aircraft orders.

Public transport: Social and political interests are focused on having public
transport develop as a real alternative to the car.

WIN-WIN-WIN: CAPITAL PROVIDERS-EMPLOYEES-COMMUNITIES

Providing good services that people want to use requires staff with the
skills and confidence necessary to meet their responsibilities with a sense
of ownership in their businesses. Infratil is investing in its employees and
the enhancement of their working environments.

Businesses will do better if their communities are healthy and welcoming.
Infratil supports the communities in which it operates through involvement in
the Community Awards with Waitakere City, the Wellington Community Trust and
TrustPower; its support of the Wellington Marine Education Centre and,
together with Wellington Airport, Wellington High Performance Aquatics; the
support of NZ Bus for Starship Hospital, North Shore Netball, the Karori
Sanctuary, the International Arts Festival and Wellington Zoo; the support of
Wellington Airport for Miramar golf and many local organisations and schools.

Capital providers in airports, public transport and energy will only win over
the longer term if their employees have skills and commitment, if users are
satisfied they are receiving a good service at a fair price, and if their
communities benefit.
Communities have legitimate interest in these sectors and Infratil welcomes
the opportunity to work with parties such as Wellington City (Wellington
Airport), Waitakere, North Shore and Rodney Councils (Whenuapai Airport),
Tauranga Energy Community Trust (TrustPower), Greater Wellington Regional
Council (Wellington buses), Auckland Regional Transport Authority and
Auckland Regional Council (Auckland buses and ferries), and the City of
L?beck (Luebeck Airport).

DEVELOPMENTS 2008

Infratil's businesses are in sectors that are growing and support investment.
Over the last two years Infratil and its subsidiaries have responded by
committing $878 million to new and enhanced facilities and services, $493
million of which was expended over the last year.

These investment initiatives are crucial if Infratil is to continue its track
record of delivering excellent returns to its shareholders. They also have an
impact on short-term reported profitability. Infrastructure businesses tend
to have relatively fixed costs while revenue rises with use. Investment means
a step-up in costs in anticipation of later growth in use and revenue.

TrustPower: As at 31 March 2008 the market value of Infratil's 50.5 per cent
interest in TrustPower was $1,194 million, which made up approximately half
of Infratil's assets. TrustPower contributed $49.5 million to Infratil's
earnings for the year.
Over the year TrustPower's investment spend was $177 million ($171 million
the previous year) mainly in respect of its 98.5MW South Australian windfarm
and the 5MW enhancement to Deep Stream hydro in Otago.

TrustPower also has four major New Zealand power projects in consenting. One
of these is the $400 million 200MW Mahinerangi windfarm which is intended to
be operated in conjunction with Waipori hydro. In November 2007, 100 years of
generation from Waipori was celebrated. The station's development, including
into the future as back-up to wind, shows the physical and commercial
sustainability of this form of energy.

New Zealand's electricity generation sector is to be faced with a cost on
green house gas (GHG) emissions from 1 January 2010 which will be borne by
generation using coal and gas. This is expected to result in slightly higher
energy prices which will be of benefit to TrustPower, which produces no GHG
emissions from its generation.

Infratil Energy Australia group: IEA continued to grow into a substantial
energy retailing, trading and generation group with assets of $271 million as
at 31 March 2008 and EBITDAF for the year of $12 million.

Over the year retailing was a stand-out performer with customer accounts
increasing from 186,000 to 286,000 despite difficult market conditions. The
benefit of such periods is that they expose competitors that have
underestimated the skills and resources required to be successful.

IEA managed this growth and got close to achieving its target net margins of
6-8 per cent. It also continued the development of its generation portfolio
with investment now totalling A$68.9 million in three Peakers (Angaston and
Lonsdale, 70MW, in South Australia and Hunter, 30MW, in NSW which is due for
commissioning in June) and the Perth 120MW dual-fuel power station where
construction is to start later this year.
Over the year IEA has demonstrated its ability to tailor customer growth to
the market conditions. At present its focus is on Victoria and Queensland,
but South Australia and NSW are all being monitored for opportunities as they
progress retail deregulation.

Energy Developments (EDL): Over the year Infratil slightly increased its
holding in EDL to 28 per cent (from 26 per cent) which, as at 31 March 2008,
had a market value of $110 million. EDL has continued to struggle with legacy issues from previous management, in particular its major West Australian LNG/Generation facility has been affected by delays and cost over-runs which, due to the way this project was structured, have had an adverse financial impact on the Company.

Nevertheless, EDL is in a good sector and will deliver improved results if it
can better structure and implement its projects.
Wellington Airport: The Airport had a successful year in regard to
operational and financial performance, and investment for future growth.
Since Infratil made its initial investment in 1998 the Airport's passenger
numbers have risen from 3.5 million people to 5.0 million and earnings from
$15 million to $60 million. Relative to 2007 income and passengers increased
21 per cent and 8 per cent respectively.

The outcomes have been helped by excellent management of costs and provision
of attractive services, but the main impetus has been increased passenger
throughput which has resulted from airline competition and the Airport's
substantial investment in facilities to allow growth.

Work now underway will ensure the Airport can accommodate further growth
while ensuring that travellers consistently experience high quality services
that represent good value for money.
Wellington Airport also concluded Stage One of its off-airport retail
development and this is now fully tenanted.

Auckland Airport: Infratil has invested $125 million acquiring a 3.3 per cent
interest in Auckland Airport. The Airport is New Zealand's premier
infrastructure asset and will benefit from local growth and the rising global
demand for air travel. It was unfortunate that the well publicised process
surrounding Infratil's acquisition of this holding occurred as it did.

Infratil Airports Europe: IAE's three airports recorded three million
passenger movements (-3 per cent over the prior year) and 64,400 tonnes of
freight (+14 per cent). Management remains focused on attracting additional
carriers and doing so on profitable terms. The European aviation market
continues to grow markedly and Infratil remains confident as to its strategic
positioning. IAE's EBITDAF for the year was $1.2 million (nil the previous
year). The net contribution to Infratil was a loss of $9.7 million (from a
loss of $20.3 million previously).

NZ Bus: Work by the NZ Bus team is starting to result in better services
which are encouraging people to switch usage from their cars. Infratil is
supporting the initiatives to lift the quality and quantity of services by
funding NZ Bus'substantial investment plan.

Despite a complex and awkward regulatory environment NZ Bus and many of its
key local authority and agency partners continue to build the sense of common
purpose which is critical in making public transport a better option for many
journeys than the private car.

While the recent resumption in passenger growth is encouraging, cost pressure
is a difficulty for the business with road user charges and wages rising
markedly over the year. NZ Bus contribution to Infratil was unchanged from
the previous year at $21 million.

Continued [looking forward]
http://www.nzx.com/market/market_ann...pany?id=164851

[Toddy]

In another market, on another day, this piece of news would have seen some real value added to the SP of TPW and IFT.


TrustPower wind farm gains consent
TrustPower was yesterday given the green light for its largest wind farm development, east of Mataura.


The Gore District Council's hearing panel has approved all resource consents sought by the company from the council and Environment Southland.

New Zealand's fifth-largest power generator, TrustPower, plans to spend $380 million on the wind farm. There would be up to 83 wind turbines, with the ability to generate 240MW, on the Kaiwera Downs site.

The development covers 2568ha, encompassing 10 farms, and was bounded to the north by State Highway 93. The turbines would be 145m tall, the highest in use in New Zealand.

In its 162-page decision, the hearing panel found any negative effects were localised while there were significant economic and environmental benefits nationally.

Turbines would dominate views within 7.5km of the site but the substantially positive effects of the wind farm outweighed negative visual effects, it says.

To offset any adverse effects the panel has ordered that TrustPower pay a development contribution of 0.2 percent of the project's total value.

This would equate to $760,000, less than half of what could have been awarded under the Gore District Council's financial contribution policy for large developments.

Any local roads used during construction were to be upgraded, at TrustPower's expense, to carry the increased traffic. The company would also have to pay for any maintenance needed as a result of road use during construction.

The company's request for an extended consent period from five years to 10 years has been granted to give it some flexibility during construction.

TrustPower community relations manager Graeme Purches said it was pleasing to get consent and the conditions, at this stage, looked all right.

Assuming there were no appeals, it would be at least three months before anything might happen in terms of ordering turbines if the economics, at the time, stacked up.

The panel's decision was open to appeal for 15 working days.