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REPORTING SEASON: Spark Infrastructure Group (SKI)

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Figure 1: Spark Infrastructure Group 12 month chart

 

Spark Infrastructure (SKI) steady as she goes

·         Spark Infrastructure (SKI) is a fund which invests in utilities and infrastructure in Victoria and South Australia. SKI owns 49% of the CitiPower and Powercor distribution networks in Victoria and 49% of the Power Networks business in South Australia. Additionally, SKI holds a 14% interest in gas pipeline owner DUET Group an acquisition that was made during the year which will contribute to cash flows from the second half of 2014.

·         SKI reported Net Profit which rose just over 17% to $89Million. Profit before Loan Note Interest & Tax rose by 13.2% in the first half year to $166 million even though transmission volumes fell across its networks in Victoria and South Australia. Operating cash flows rose 4%.

·         Earlier guidance saw SKI forecast full year distributions of $0.115 per security, an increase of 4.5% compared to 2013.The 2015 distribution is expected to rise in the range of 3-5%.

·         SKI announced an unfranked interim distribution of $0.0575 per security for the period ending 30 June 2014. The record date for determining the entitlement is 3 September 2014, payable on 2 September 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Tom Piotrowski, Market Analyst,