IFT - Infratil

[Caesius]

Check out the volume today! What does this mean?

[Caesius]

That last post sounds like I'm expecting something good...

No, I'm just curious as to who's buying/selling $5,368,785 worth of IFT shares.

[oscar74]

Yes, but why didn't that volume push the price up?

[Caesius]

quote:Yes, but why didn't that volume push the price up?

Why would it?

[Caesius]

5.7% jump today after increased holding in Trustpower. Interesting.

[Toddy]

Trustpower will now form part of the IFT accounts, cashflows, depreciation, the works. Time to rework those valuation spreadsheets.

The IFT interim accounts are due out any day soon and should help consolidate the current SP. Im picking further upward movement to come.

Note that the warrants have never been cheaper.

[Rif-Raf]

Not much comment on the as I guess it's only a half a billion $deal!
I guess everyones trying to work out what this is worth to IFT. They're saying the implied price is about $6.20 or 11.5% below the market price of $7 so that's around $50m below market - not bad!

The market certainly likes it, up another 15c today so far.
The timing of the Stern report is also a big vote of confidence for TPW/IFT too.

Yet another smart investment by IFT[^]

[Rif-Raf]

Infratil Airports Europe: October 2006 Traffic Statistics
Glasgow Prestwick Airport
Glasgow Prestwick handled a total of 226,304 passengers in October, a 2%
increase on the prior year.
Freight volume of 2,896 tonnes is GPA's best result since December 2004,
driven by strong volumes across all scheduled carriers, with Atlas/Polar
having a particularly good month. British Airways World Cargo services began
towards the end of the month.

Kent International Airport
Kent International Airport handled 2,509 tonnes of freight in October, a
record month and a 48.5% ahead of the corresponding month last year.
This strong growth is due in part to the European winter approaching, with
increased volumes of fresh produce being imported from Africa. However,
export volumes (368 tonnes) are also growing, partly due to the increasing
confidence that airlines have in Kent's team and its ability to deliver
quality service in both import and export functions.

Luebeck Airport
Scheduled passenger numbers in October, at 63,824, were marginally down on
the prior year 64,385. Load factors were stronger on all routes than in
September, with a slight softness on the prior year.


I'm encouraged by the above especially the bit about Kent. I'm convinced that is going to be an outstanding investment in the long run.

[Toddy]

Looking good for Wellington International Airport too.

Watchdog deals blow to codeshare


Nov 3, 2006

A competition watchdog has dealt a major blow to plans by Air New Zealand and Qantas to code share on the transtasman route.

The Australian Competition and Consumer Commission issued a draft decision denying the plan.

It says the proposed agreement would allow Qantas and Air New Zealand to co-ordinate all transtasman activities, including holding meetings to determine schedules and prices.

The commission's chairman Graeme Samuel says the deal would fundamentally change the competitive process.

He says the commission considers the agreement would only result in limited public benefits in the form of cost savings to the airlines as well as marginal improvements in schedule spread, connectivity and frequent flyer options.

The commission is now seeking submissions on Friday's draft decision before making a final determination.

[Toddy]

IFT is set for a great few years ahead........ 'The next 12 months should start to see some of the fruit from the efforts that have gone into the businesses that have cost us significantly to date,'Mr Morrison said.

Infratil profit drop 'in line with expectations'
14 November 2006

Wellington infrastructure investor Infratil has reported a 21 per cent drop in tax-paid profit for the six months to September.


But chief executive Lloyd Morrison said the $11.8 million profit was in line with expectations. The market agreed and shares closed 15 cents up at $4.90.

The consolidation of bus and ferry operator Stagecoach lifted earnings before interest, tax, depreciation and amortisation to $66.6 million, from $39.1 million the same time last year.

Consolidated assets were $1.76 billion, more than $700 million higher, "so quite a big change in the structure of the business", Mr Morrison said.

A dividend of 5c a share would be paid on January 19, unchanged from a year ago.

Mr Morrison said cash flow included depreciation and amortisation of $22.2 million, up $7.1 million, as a result of recent investments.

Interest costs were $11.3 million higher, reflecting the increased debt funding for new investments.

"The next 12 months should start to see some of the fruit from the efforts that have gone into the businesses that have cost us significantly to date," Mr Morrison said.

The company expects to open an offer of new Perpetual Infratil Infrastructure Bonds to raise at least $100 million.

The bonds would have no maturity date and an initial yield of 9 per cent.

Two weeks ago, Infratil agreed to pay $445 million to increase its ownership of TrustPower from 35 per cent to nearly 59 per cent. It will sell some of the shares and retain a 50.1 per cent controlling interest.

TrustPower contributed $20.2 million for the half-year.

Recommendations in the recent British Stern report on global warming, if implemented, would bring an increased emphasis on renewable energy generation, Mr Morrison said.

Bus passenger numbers continued to grow in Wellington, and the rate of decline in Auckland was flattening.

Growth in the business had been less than hoped for. Though there appeared to be strong political will and policy intention to get people out of their cars, this was not yet flowing through into action, Mr Morrison said.

A decision has been made to renew Wellington's electric trolley buses for another 20 years.

"Actually finalising agreement seems interminable, so orders for the new electric buses have not yet been made."

Wellington International Airport, which is 66 per cent owned by Infratil, increased its before- tax earnings by 5 per cent through its off-airport retail development and passenger services.

Domestic passenger numbers were flat and trans-Tasman traffic was down slightly.

Wellington airport chief executive Simon Draper said long-term growth would come from passenger growth – which explained its strong stance against the proposed code-share between Air New Zealand and Qantas, and the promotion of long-haul services out of the capital.

The first stage of the $31 million runway safety extension project had been completed at the south end, and work was about to begin to add 90 metres to the northern end.

Wellington airport plans to increase landing fees by 3 per cent a year for the next five years.

Mr Morrison said the $6 million loss by its European airports business – consisting of Glasgow Prestwick, Kent and Lubeck – was also in line with expectations because of the acquisition of Kent and Lubeck airports.