things are looking better
Went to investor presentation by Tim Brown.
- Apart from global uncertainty, all looks pretty positive aside of duds poor results of some investments and market pricing of shares.
- B warrants considered major cause of SP slide in last year (in addition to macro factors) which is why they have taken recent actions
- Expect strong earnings lift in next year as benefits of high capex in last 4 years starts to come through combined with very low capex this year ahead
- Debt reduction remains a focus as market has tarnished them with same brush as the likes of BNB so wish to avoid that perception
- Looks like they will be out of ENE soon. Very much in play.
- Very bullish on TPW. Not worried by Brownlees blustering as big generation investment is needed going forward and won't happen if uneconomic.(same comments apply to NZ airports review)
- IEA looks like could be a major earner in next year or two. They are expecting huge margin improvement from current levels as they have been pricing for growth. Also expect to have eventually have 1m customers (currently 400k)
- Euro airports not flash, but losses in last year will not recur as they have restructured. Expect big rebound when cycle eventually changes but dont know when. Will get their money back and holding costs from Lubeck sale $64m
- Wgtn airport, a stellar performer and confident of a continuation due to changes in Australasian air scene.
- Expect further assets sales in stagecoach. Very peeved off with dead wood in this sector. Snapper card still in the running with others for Auckland bus card tender.
All in all things are looking up from a couple of crap years.