The final price for the IPO will be set following a bookbuild later this month. It will include at least 10 pipeline and power assets, including the Eastern Gas Pipeline and Port Hedland Power Station.
While AIH would be floated as a new entity, significant linkages with Alinta would remain, with the company continuing to hold a stake of at least 20%, chief executive Bob Browning said.
The Perth-headquartered company told the ASX this morning that its A$42.3 million figure – the first to be reported under the Australian Equivalents to International Financial Reporting Standards (AIFRS) – represented a continued strong financial performance by the diversified group.
Chairman Tony Howarth said Alinta expected a significant profit from the IPO and the move would be “immediately earnings accretive”. This would significantly improve Alinta’s gearing position and strengthen its BBB stable credit rating.
“The IPO allows Alinta to unlock some of the value it has enhanced in these assets, and in doing so provides access to additional funds that will be used to continue to grow the business,” Howarth said.
The 2005 first-half result was down A$5.9 million on the previous corresponding period, but that did not reflect any adverse underlying operating conditions, according to Alinta.
It was due to the accounting treatment of the dividend payable on its reset preference shares, which under the new regime was now accounted for as an interest expense, and the acquisition of AIH, which was expected to report an accounting loss from the outset despite its strong positive cash flow.
Alinta’s total revenue grew from A$393.9 to A$546.8 million, driven largely by a full six month contribution from the former Duke assets.
“The results we have reported today are driven by very strong performance across all operating divisions,” Howarth said.
“It has been particularly pleasing to see strong increases in gas throughput on our Eastern, Queensland and Tasmanian Pipelines.
“We are now in a position to release some of the capital invested in these assets and redirect it into further growth. We have struck a balance between providing undeniable financial benefits to Alinta, both from a balance sheet and profit and loss perspective, while also creating a new listed investment product for investors.”
Alinta’s business covers the energy sales, energy distribution, asset management, gas transmission and power generation sectors.
