REPORTING SEASON: Spark Infrastructure Group (SKI)

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Figure 1: Spark Infrastructure Group 12 month chart


Spark (SKI) has posted a weaker result while distributions are as expected

 Spark Infrastructure (SKI) posted a weaker than expected annual profit of $128.1m for the 12 months ended 31 December 2014.

 SKI has substantial interests in regulated electricity distribution businesses in both VIC and SA. SKI has a 49% stake in Citipower, which owns and operates the network that supplies electricity to customers in Melbourne’s CBD and suburbs.

 SKI will pay out a final distribution of $0.0575/share on 13 March 2015, which was in-line with consensus. SKI forecasts $0.12/s in distributions this financial year. SKI has a 5.15% yield.

 Looking ahead, SKI said that both its South Australia and Victoria Power Networks are in the final year of their respective 5 year regulatory periods. It expects the level of growth for the next 5 years to be determined by the upcoming regulatory resets. SKI intends to provide longer term guidance in relation to future distribution growth at a later date.

 SKI shares are up modestly so far this calendar year after surging by 31% in 2014.


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Steven Daghlian, Market Analyst,