Macquarie Infrastructure posts 223 per cent decline

Another Macquarie division has taken a major hit to its bottom line – this time Macquarie Infrastructure Group, which has a 223 per cent drop in net profit attributable to security holders largely as a result of major downward revaluations.

The group announced to the Australian Securities Exchange today that its net loss attributable to security holders was $1,269.9 billion – a result it said predominantly reflected the impact of revaluations of the road businesses in the portfolio.

It stressed, however, that revaluations have no impact on the group’s operating performance, current cash flows or distributions.

MIG chief executive John Hughes said the group’s road portfolio had actually delivered an increase in proportionately consolidated actual revenue and earnings before interest tax of 9.4 per cent and 8.3 per cent respectively.

He said this was a solid result achieved in an environment where extremely difficult economic conditions had lead to a reduction in traffic volumes on MIG’s European and North American roads.

Hughes said that since June, last year, the group had undertaken a number of initiatives to offset the negative external factors impacting on the portfolio including the sale of its investment in Lusoponte and Westlink M7 and the successful refinancing of an equivalent $1.8 billion in debt.

He said that MIG would continue to focus on activity to ensure the delivery of both revenue and EBITDA growth and that it would continue to consider sale opportunities.