Diversified investment company Infratil's half-year result was buoyed by a more than $40million gain from its investment in electricity gentailer Trustpower.
Gains made by Trustpower, whose earnings rose 33% from $118.9million a year ago to $159.1million, offset declines in NZ Bus and a $6.2million loss for Perth Energy.
For its first-half trading to September, revenue declined 3.7% to $935.7million, earnings before interest, tax, depreciation, amortisation and fair value adjustments (ebitdaf) rose 18% to $291.3million while after-tax profit was boosted 15.5% to $33.4million.
Infratil paid a 6c per share interim dividend, slightly up on last year, and its shares rose almost 1% to $3.22 following the announcement.
Total assets across all companies were $2.79 billion, having declined from a year ago following the $246.5million sale of its Metlifecare stake, and at present it has $377million debt.
Infratil chief executive Marko Bogoievski said the 18% earnings lift was largely due to positive generation and market circumstances for Trustpower.
``Trustpower had an outstanding period of climatic and market circumstances,'' he said.
The company said Perth Energy continued to make losses during restructuring of its portfolio, while NZ Bus' contribution turned to a loss after the loss of contracts came into effect.
Forsyth Barr broker Damian Foster said said the ``strong headline growth'' was largely from strong hydro generation helping Trustpower.
``It's a typical Infratil result, with pluses and minuses.''
While the declines in Tilt Renewables, NZ Bus and and continued difficulties with Perth Energy were expected, and disappointing, ``at least they were not negative surprises''.
Craigs Investment Partners broker Peter McIntyre said Infratil's full year ebitdaf guidance was unchanged, at $485million to $525million, contrary to expectations of a rise.
``It's confirming they're still tracking towards the middle of that range,'' Mr Mcintyre said.
The companies which surprised positively included RetireAustralia, up $8million on a year ago, Canberra Data Centres up $18million - having secured a significant contract with Microsoft - and ANU student accommodation coming in $4million up last year.
During the half year $143.4million in Infrastructure bonds was raised, replacing $66.3million of maturing bonds which largely pre-funded Infratil's November maturity, of $81.1million.
More than $670million cash and undrawn bank facilities remain available.
A total $139.5million of capital was invested over the period, initiatives included the start of Tilt Renewables' 54MW Salt Creek wind farm, costing $21.1million, ongoing investment by Wellington Airport in the transport hub and on-site hotel of $40.3million, and investment in wind and solar generation through Longroad Energy of $22million.
Mr Bogoievski said Wellington Airport experienced ``solid traffic growth'', and was continuing to upgrade its facilities.
``Tilt Renewables started construction of a new wind farm and progressed the development of several others.''
``The investments now under way reflect long lead times of planning, consenting and negotiating satisfactory terms for the relevant construction and utilisation agreements,'' he said.
Infratil has reshaped its portfolio in recent years, investing in the likes of Canberra Data Centres, Australia National University student accommodation and US renewable business Longroad, while exiting Z Energy, Lumo and iSite, BusinessDesk reported.
It sees its core-cash generating assets as being Trustpower, Wellington International Airport, NZ Bus and the ANU student accommodation, while holding Tilt Renewables, Retire Australia, CDC and Longroad for growth.
