MIIF Q3 earnings up 40.7% to $33.2m

Increased earnings due to higher investment income

MACQUARIE International Infrastructure Fund (MIIF) yesterday reported net profit attributable to equity holders of $33.2 million for the third quarter, up 40.7 per cent year on year.

The earnings boost was on higher investment income. Total revenue for the three months ended Sept 30 was $35 million, up 37.7 per cent from $25.4 million for Q3 last year.

For the nine-month period, however, net profit fell 35.9 per cent to $33.2 million. And total revenue fell 23 per cent to $43.8 million.

MIIF said the falls were in line with expectations and follow the disposal of interests in Macquarie European Infrastructure Fund during Q4 2009, and Arqiva and the Canadian Aged Care in the current year. Arqiva is a communications infrastructure and media services company with a presence in Ireland, mainland Europe and the US.

MIIF said its core Asian infrastructure businesses, such as its Chinese port and expressway units, continue to perform strongly. ‘Revenue at Changshu Xinghua Port is up significantly due to continued cargo diversification, while Hua Nan Expressway has witnessed strong growth in traffic due to continuing economic recovery in the Guangdong region and the opening of phase three of the road,’ said John Stuart, CEO of MIIF’s manager, Macquarie Infrastructure Management (Asia).

‘Management continues to focus on executing MIIF’s strategy of acquiring Asian infrastructure businesses,’ he said. ‘We have reviewed a number of investment opportunities in which to deploy MIIF’s significant cash balances. However, none of these have met the strict investment criteria that we apply.’

MIIF said in its financial statement that it has cash and cash equivalents of $487.7 million.

MIIF units lost half a cent yesterday to close at 58 cents.

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