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Infratil confidence improves in operating earnings guidance

Fuseworks Media
Fuseworks Media

Wellington, Aug 11 NZPA - Infrastructure investor Infratil says its operating performance in the first four months of the 2011 financial year have improved confidence levels around full year operating earnings (ebitdaf) guidance of $390 million to $430m.

That compares with ebitdaf of $363m in the year to March 2010.

On April 1 Infratil confirmed that in a consortium with the New Zealand Superannuation Fund it had bought Shell New Zealand's distribution and retail businesses and a 17.1 percent interest in the NZ Refining Co.

The base purchase price was $696.5m, and the business was renamed Greenstone Energy.

A presentation by Infratil chief executive Marko Bogoievski to the Infratil shareholders' meeting today said Greenstone had made a "very positive start".

Greenstone was a potential long term core asset with significant business improvement opportunity in a rapidly changing industry, the presentation said.

It should respond well to selective investment after many years of limited available capital.

The presentation also noted that the next stage of the investment cycle would suit Infratil.

A large amount of passive funds were targeting utility returns, while there were fewer active managers of complex assets.

Assets with higher risks and higher returns were only available to operators, with capital markets only supporting the highest quality projects and managers.

Infratil shares were up 1c to $1.63 by late morning.

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