Infratil told the NZX yesterday afternoon that its March 31 year net surplus was NZ$45.04 million, compared with NZ$22.47 million for the previous year.
“The result reflects the equity accounting of TrustPower and the consolidation of Glasgow Prestwick and Wellington airports and Victoria Electricity.
“Infratil is benefiting from step-changes in the energy and airports industries. Infratil has also increased its interest in Energy Developments Limited and established the fast growing Australian energy retailer, Victoria Electricity,” said the company.
Infratil chairman David said Tauranga-headquartered TrustPower (in which Infratil holds a 35% interest) had had an excellent year, with its after-tax surplus rising to NZ$73.15 million from NZ$61.85 million and contributing NZ$25.74 million to Infratil's net surplus.
Infratil supported TrustPower's “high spend” on development but would have considerable regrets if resource consenting problems resulted in the delay or abandonment of renewable generation projects that were “very much needed for future energy security”.
During the year Infratil invested an additional NZ$53.57 million in Aussie waste energy and remote power generator EDL, taking its stake to 19.9%. It also increased its stake in new Melbourne discount electricity and gas retailer, Victoria Electricity, to 88% through an additional NZ$10.02 million of funding.
Infratil director Lloyd Morrison said VE, which now had 31,000 electricity and gas customers, was “a significant growth path", though its customer base still needed to grow to a sustainable scale. VE, which contributed a NZ$2.4 million start-up loss for Infratil, could reach close to A$70 million in turnover during the next 12 months, from the A$13 million of the last year.
Infratil was playing an active role in VE’s governance and risk management, ensuring wholesale purchasing was robustly diversified and fully reflected the potentially volatile spot markets.
“Options for peaking and gas fired generation are seen as a natural component of risk management and may be initiated if wholesale market contract prices rise to excessive levels or if wholesale hedges become less freely available.”
Infratil would also consider buying generation in Australia but only if it made commercial sense. At present, it was cheaper to buy power on the wholesale market, than buy generation.
Infratil’s 66% stake in Wellington Airport added NZ$23.6 million, up from NZ$18 million, to the annual results, while its 100% stake in Glasgow Prestwick Airport only contributed NZ$3.3 million. Infratil’s profit was also helped by the sale of 3.9% of its 9.2% stake in Port of Tauranga that realised NZ$27.4 million.
