By Angela Macdonald-Smith
Nov. 20 (Bloomberg) -- SP AusNet, the Australian electricity and gas distributor majority owned by Singapore Power Ltd., rose to the highest in more than five months in Sydney trading after maintaining its dividend forecast.
SP AusNet, based in Melbourne, gained as much as 4.7 percent to A$1.225, the highest since June 6, and traded 3 percent higher at 1:46 p.m. local time. The advance compared with a drop of as much as 4.6 percent in the exchange's benchmark index.
The utility today declared a first-half dividend of 5.927 Australian cents a share, up 2.6 percent from a year earlier and above Credit Suisse Group's estimate of 5.91 cents. SP Ausnet kept a forecast for a 2.5 percent increase in full-year distributions and said it is confident of funding a A$2.7 billion ($1.7 billion) spending program over the next five years.
``In the current environment, anyone that can meet their numbers and not have any nasty surprises nor have the need to raise capital, then it's positive,'' said Grace Chan, a utilities analyst at JPMorgan Chase & Co. in Sydney.
Profit in the six months ended Sept. 30 rose 2.4 percent to A$122.5 million before one-time items, higher than predictions of A$115.4 million by Credit Suisse and A$113.6 million by JPMorgan.
Net income dropped 23 percent to A$92.2 million after a charge for the replacement of meters in Victoria state, SP AusNet, 51 percent-owned by Singapore Power, said in a statement. Sales climbed 8.9 percent to A$635.5 million as the company added about 5,500 customers to its network in the half, while cooler winter weather boosted volumes.
`On Target'
``SP AusNet is on target to meet underlying net profit after tax guidance for the full year after adjusting for the impairment to meters,'' the company said in its statement to the Australian stock exchange. Second-half margins and profit are expected to be lower because of weaker seasonal demand, it said.
The utility took a A$30.3 million after-tax charge on meters that will need to be replaced under a Victorian program to roll out so-called smart meters that allow utilities to vary prices through the day depending on demand.
Earnings before interest, tax, depreciation and amortization rose 11 percent to A$405.2 million. Given the deteriorating economy, SP AusNet is increasingly focusing on ``underlying fundamentals and credit metrics to ensure it continues to be able to access capital markets to fund growth at competitive rates,'' the company said.
SP AusNet expects to complete its capital expenditure plans while retaining its ``A-range'' credit rating, Chief Financial Officer Geoff Nicholson said on a conference call. The company has no aspiration to revive a failed plan to acquire assets formerly owned by Alinta Ltd. from its parent, said Managing Director Nino Ficca.
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
Posts
No comments:
Post a Comment