Babcock & Brown Infrastructure (BBI) has reported a significant fall in annual profit, with investor distributions taking a cut.
The group reported a loss attributable to members of 145 per cent for the period ending June 30, 2008.
Total distributions for the year ending June 30, 2008, were 10 cents per security, compared to 14.25 cents in 2007 — a 29.8 per cent decrease.
However, thanks to the acquisitions made by the group during the year, BBI group revenue was up 84.3 per cent on the previous corresponding period to $2.3 billion. The businesses acquired by BBI in the past year contributed to the majority of this increase — they include the Australian Energy Transmission and Distribution businesses acquired from Alinta and five European acquisitions.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) were also up 42 per cent, to $742.2 million, for the same reason. Excluding the impact of the acquisitions, EBITDA was up 6 per cent — an increase of $35.8 million.
The group said both revenue and EBITDA had been impacted by the strong Australian dollar during the year, but this was mitigated by the hedging of expected distributions from subsidiaries and ensuring the funds borrowed for acquisitions consisted of local currency.
The group’s distribution reinvestment plan will not apply in respect of the distribution for the six months ending June 30, 2008, with final distributions to be paid in the middle of September. Distributions for the year ending June 30, 2008, will be 100 per cent tax deferred.
In other news, the capital management review announced in June, and undertaken by Deutsche Bank, is now “substantially complete”, the group said.
Dr David Hamill has been appointed as independent chairman, and BBI is in the process of appointing a replacement independent director for departed chief executive Phil Green.
And, following his appointment as Babcock & Brown’s chief investment officer, Peter Hofbauer will step down from the group’s managed listed funds boards, including the BBI boards.
