15 Nov 2011

Infratil profit drops but CEO stays positive

7:52 pm on 15 November 2011

Infratil's half year profit has slipped but the company says it is well placed to handle the ongoing market volatility.

The listed infrastructure investor reported an after tax profit of $89 million in the six months to the end of September - 12% less than the $101 million it made in the same period a year earlier.

Pre-tax earnings rose 7% to $273 million. Trustpower contributed 60% of that, its Australian energy business 17%, Wellington Airport 13%, and the rest came from NZ Bus and Z-Energy.

Infratil chief executive Marko Bogoievski says it's a solid result, given the challenging environment, weak demand and volatile financial markets.

"The underlying performance of the business was actually quite a strong gain on the previous year and the nice part was that it was spread across a number of businesses," he told Evening Business on Checkpoint.

"So really we've got a portfolio now that's about as well configured as you would like going into what I think could be quite a difficult next 12 or 18 months."

Mr Bogoievski says despite market volatility, full year earnings are expected to be between $460 million and $490 million, compared with $443 million in 2011.