BBI reports loss

cent chief investment officer chief executive chairman director

27 August 2008
| By George Liondis |

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 2 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

6 days 16 hours ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

3 weeks 6 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

5 days 15 hours ago