What's happening with the Infratil (ASX:IFT) share price?

The Infratil share price is slipping amid a wider market selloff. We look at the infrastructure investment company's results.

| More on:
A graphic featuring renewable energy sources such as wind, solar and battery power, indicating positive share prices growth in the ASX renewable sector

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Infratil Ltd (ASX: IFT) share price is slipping today, down 0.3% in morning trade as the wider S&P/ASX 200 Index (ASX: XJO) is down 1.7%.

Below we take a look at the infrastructure investment company's full year results for the year ended 31 March.

What full year results did Infratil report?

Infratil's share price is slipping despite the company reporting an increase in proportionate earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF).

Proportionate EBITDAF from continuing operations climbed to NZ$398.8 million (AU$369.3 million) for the year, up from NZ$370.2 million from the previous year.

(Proportionate EBITDAF shows Infratil's operating costs and its share of the EBITDAF of the companies it has invested in. It excludes discontinued operations and management incentive fees.)

Infratil said that COVID had negatively impacted its Wellington Airport and Vodafone New Zealand assets. But this was mitigated by 25% growth in its CDC Data Centres earnings.

Unrealised energy derivative losses at Trustpower and increased management incentive fees drove Infratil's share of the net loss for the year to NZ$49.2 million. The company said this reflects valuation increases not recognised for accounting purposes.

Acquisitions and investments

Over the full year Infratil and its portfolio businesses invested NZ$250 million in digital infrastructure and technology, NZ$590 million in renewable energy, and NZ$310 million for the acquisition of 56.25% of Australian based Qscan Group to initiate a new diagnostic imaging platform.

Following the acquisition of Qscan, Infratil announced it had also entered into an unconditional agreement to acquire 53.5–58.5% of Pacific Radiology. The cost will be in the range of NZ$312–344 million.

Commenting on the acquisitions, Infratil CEO Jason Boyes said:

[The acquisitions] create a meaningful Australasian healthcare platform with a number of potential synergies and adjacent opportunities. The purchases also confirm our continuing confidence in thematics which are driving our capital allocation in communications and digital infrastructure, decarbonisation, and aging populations.

Infratil reported it will have net cash of more than NZ$1 billion for investment following the acquisition of Pacific Radiology and receipt of the Tilt Renewables Ltd (ASX: TLT) sale proceeds.

Returns and dividends

Infratil reported "total shareholder return for the year was 91.9%, comprising 4.3% after tax dividend return and 87.6% capital gain, including the rights issue".

The company has declared a final dividend of 11.5 NZ cents per share. That's up 4.5% from the previous year.

Infratil said it will provide full details of its potential new offer of unsecured, unsubordinated fixed rate Infrastructure bonds at the end of May.

Looking ahead, the company's guidance for the year ending 31 March 2022 is for a proportionate EBITDAF of NZ$470–520 million. That figure excludes Tilt Renewables and Pacific Radiology.

Infratil share price snapshot

Over the past 12 months, Infratil shares have gained 53%, outpacing the 25% gains posted by the ASX 200.

Year-to-date the Infratil share price has slipped, down 5% so far in 2021.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Share Market News

These are the 10 most shorted ASX shares

Let's see why short sellers are betting on these ASX shares sinking.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Opinions

1 ASX stock to consider buying that could be the next Brickworks

This company has great long-term potential, in my opinion.

Read more »

A man in a business suit peers through binoculars as two businesswomen stand beside him looking straight ahead at the camera.
Share Market News

3 things ASX investors should watch this week

There’s set to be some big news dropping for ASX investors over the coming days.

Read more »

A young man wearing a backpack in a city street crosses his fingers and hopes for the best.
Dividend Investing

These 2 ASX shares are predicted to pay dividend yields higher than 8%!

Here are two stocks paying excellent cash flow.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Growth Shares

How I'd use ASX growth shares to turn $1,000 into $10,000

Choosing the right growth shares can add plenty of bang to your buck.

Read more »

A couple sitting in their living room and checking their finances.
ETFs

The pros and cons of buying the BetaShares Australia 200 ETF (A200)

These are what I consider to be the main positives and negatives of the cheapest ASX share ETF in Australia.

Read more »

Smiling man working on his laptop.
Share Market News

5 things to watch on the ASX 200 on Monday

A better session is expected for Aussie investors today.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »