1st Mar 2019 08:48
LONDON (Alliance News) - HICL Infrastructure Co Ltd on Friday said it is currently on track to achieve its full-year dividend target of 8.05 pence per share, amid steady portfolio performance.
In a separate announcement, the infrastructure investment company extended its GBP400 million revolving credit facility for one more year to May 2022.
The facility remains on the same terms as before, with a margin of 1.65% over LIBOR.
For its year ending March, HICL expects to pay its targeted dividend, and has reiterated its guidance for an 8.25 pence per share dividend for the 2020 financial year and 8.45p for 2021.
Also, on March 26 the company will hold an extraordinary general meeting, on vote on moving the domicile of its investment business from Guernsey to the UK.
In the second half of its current financial year to date, HICL's portfolio has performed in line with expectations, as the company's asset management team continues to work on repairing damage done on public-private partnership contracts affected by the collapse of Carillion.
So far, eight projects have received newly signed sub-contracts, and four projects on which Carillion previously worked on have remedied their defaults.
PPP projects, which make up 70% of HICL's portfolio, have performed in line with expectations, along with demand-based assets, which make up 22%.
However regulated assets, which make up 8% of HICL's portfolio, were behind expectations, with wholesale operations at water supply company Affinity Water remaining under pressure, with weather events leading to higher leakage-related call-outs than expected.
"I am pleased to present an update on the company's activities in the period since the interim results. Portfolio performance overall has been steady, with some operational challenges alongside positive value enhancements and progress in a number of areas," said Chair Ian Russell.
HICL shares were 0.7% lower on Friday morning at 165.20 pence each.
Related Shares:
HICL Infrastructure