Infratil has lowered its expected earnings for the year just ended, citing weaker New Zealand energy and public transport markets, and the impact of a lower Australian dollar.
Unaudited earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF) were $NZ490 million ($A457.62 million) to $NZ500m in the year ended March 31, down from its previous guidance of $NZ500m to $NZ540m, the infrastructure investment company said in a statement.
That’s down from EBITDAF of $NZ538m a year earlier.
“The updated EBITDAF guidance for 2014 is at the lower end of the previous guidance range due to a slightly weaker trading performance in New Zealand energy and public transport markets and the impact of the weaker Australian dollar on earnings,” chief executive Marko Bogoievski told an investors’ briefing in Wellington on Friday.
Shares in Infratil dipped 1.4 per cent to $NZ2.24.
In the past year, Infratil has reduced its holding in petrol retailer Z Energy and added a stake in retirement village developer and operator Metlifecare to its energy, airport and public transport holdings.
In an environment of increased competition for low-risk core infrastructure, the company favours investment in well-positioned assets with opportunities for further investment which may require a longer holding period, Mr Bogoievski said.
He said Infratil was repositioning its portfolio for the next 10 to 15 years, though it hasn’t changed its fundamental approach in seeking high-growth infrastructure investments.
“We’ll come at opportunities in any market if we feel ultimately we can deliver our model,” he said.
In the latest year, Infratil had benefited from higher operating cash flow from improvements in working capital and dividends received from selling some of its holding in Z Energy in an initial public offering, he said.
For the coming 2015 year, Infratil expects EBITDAF of $NZ530m to $NZ560m.