Infratil shares on watch after half-year results

Infratil Ltd (ASX: IFT) shares are on watch this morning after the company released its 1H 2020 half-year results to the market.

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Infratil Energy Ltd (ASX: IFT) shares are on watch this morning after the company's half-year result announcement.

What could move Infratil shares this morning?

One of the announcement's big highlights was Infratil's acquisition of Vodafone NZ for $1,029 million. The Vodafone acquisition was the largest corporate transaction in New Zealand for over a decade. Infratil purchased a 49.9% stake in the company alongside Brookfield Asset Management in 1H 2020.

Infratil's underlying EBITDAF from continuing operations edged higher to $289.4 million, up from $284.6 million in 1H 2019.

Vodafone's contributions totalled $39.1 million across 2 months, while low hydro generation in New Zealand hurt the company's comparable earnings.

Infratil invested $332.6 million during the period, including significant projects with Tilt Renewables Ltd (ASX: TLT) and CDC Data Centres.

Tilt and Longroad Energy announced three new renewable generation projects with 755 megawatts (MW) of capacity at $1,470 million in cost.

CDC is planning further construction across Canberra and Sydney for a further combined 150MW of data centre capacity.

It was a busy 6 months for Infratil as it divested 4 portfolio businesses. These included ANU Student Accomodation, NZ Bus, Perth Energy and Snapper.

Infratil's 80% stake in Perth Energy was snapped up by AGL Energy Ltd (ASX: AGL) for $55 million in August.

Infratil shares climbed higher over the 6 months to 30 September from $4.17 to $4.92 per share. They have since pulled back to their current level of $4.59. 

What about the 2H 2020 outlook?

Infratil is expecting its FY20 dividend to be maintained at the same level as in FY19.

Infratil's underlying EBITDAF guidance was placed at $655 million to $695 million, excluding the contribution from the divested businesses.

Underpinning these earnings is an expected EBITDAF contribution of $200 million to $215 million from Trustpower, with a further $127 million to $132 million from Tilt.

The company's recent Vodafone acquisition is also set to contribute significantly to its FY20 numbers.

Foolish takeaway

Overall, this morning's half-year result shouldn't cause too much movement for Infratil shares.

The company's share price has edged lower on the New Zealand Stock Exchange (NZX) but remain unchanged on the ASX at the time of writing.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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