Net profit for 2006 dropped to $172.69 million from $232.20 million in the previous year.
The net profit figure for 2005 was increased by the $137.8 million sale of the former Duke assets into Alinta Infrastructure Holdings. It bought its spin-off, AIH, in a $500 million buyback in January.
The Perth-based company, which last October completed a $6.3 billion asset and debt swap with Australian Gas Light, generated revenue of $1.48 billion, a jump of 40.7%.
Alinta, which is facing a management buyout, said it had received a number of expressions of interest in relation to the possible sale of the company.
“A limited number of interested parties have since given access to a virtual data room to conduct due diligence on the company,” Alinta said.
“Binding bids may then be submitted on completion of this process.”
It said its management in conjunction with its advisers, JP Morgan and Carnegie Wylie, is working on options for a restructuring of Alinta on a standalone basis. This will form the base line against which any external bids will be compared.
“We are working hard to finalise our internal valuation of the company,” Alinta chairman John Akehurst said.
“For any external bid to be recommended to shareholders, it will need to offer a suitable premium over this approach.”
In 2006, Alinta’s profit from underlying operating activities rose 37% to $140 million.
“These results show very strong operational performance within Alinta during a year in which we have also undertaken significant corporate activity,” acting chief executive Peter Magarry said.
“Key elements of the result are the excellent underlying operational performance and the good progress with the integration of the AGL infrastructure assets and asset management business we acquired in October 2006.
“We remain confident we will achieve the $70 million in annual cost savings from the AGL integration in a timely manner.
“The current forecast represents an upgrade from the original Scheme Booklet estimate of $55 million.”
Alinta said the majority of its cost savings of about $65 million, are expected to result from the integration of Alinta Asset Management and Agility.
It expects to incur about $48 million in one-off costs by the end of 2007 in order to achieve these savings.
“We are comfortably on track to meet the financial and timing targets we have set ourselves in this area,” Magarry said.
Looking ahead, Alinta said its structure may be subject to “significant change” during 2007.
“Alinta had previously flagged to the market its intention to review its asset ownership structure following completion of the AGL transaction,” the company said.
“The competitive bidding process which the company has embarked upon following the announcement in January 2007 of a possible management buyout may ultimately lead to the sale of the business.
“Given the current status of corporate activity, the directors have chosen not to issue 2007 earnings guidance at present.”
