23rd Nov 2021 11:42
(Alliance News) - International Public Partnerships Ltd on Tuesday said its investment pipeline remains strong with risks for its current investments being actively managed and mitigated.
The London-based infrastructure investor posted a net asset value per share at June 30 of 145.1 pence, down 1.4% from 147.1p at December 31.
International PPL's underlying revenue continues to be underpinned by inflation-linked price rises, it said. "Strong inflation linkage continues to provide protection to the company's projected returns in the event of a higher inflation environment."
Turning to its portfolio, water and sanitation utility Tideway, the company building a new 'super sewer' along the River Thames in London, is currently conducting a "thorough review" of the remaining activities to provide clarity on the schedule and costs to completion. The project is more than 70% complete now.
International PPL noted that Tideway was somewhat hurt by Covid-19 and is in discussions with UK water regulator Ofwat on a package of measures to mitigate that financial impact.
Rail infrastructure investment Diabolo in Belgium, which is integrating Brussels Airport with Belgium's national rail network, has seen its revenue hurt by restrictions on international travel and national lockdowns due to Covid-19.
UK-based gas distribution network operator Cadent, which is International PPL's largest by investment fair value, has, as previously announced, appealed the regulator Ofgem's final determination regarding the five-year regulatory period which started this past April to the Competition & Markets Authority.
"The CMA published its final determination in October 2021 and the findings will be modestly positive for the company's valuation of its investment in Cadent, as the company's June 30, 2021 valuation prudently assumed no benefit from the CMA appeal," the company said.
Looking ahead, International PPL said its investment portfolio is expected to continue to be "resilient with risks being actively managed and mitigated".
"The pipeline for the types of assets the company invests in remains strong and the company continues to remain confident in its ability to continue to source and develop quality, high-performing opportunities, across the company's target geographies, that deliver long-term, predictable cash flows with strong inflation-linkage that meet the company's risk-return profile," it said.
Shares in the company were down 0.6% to 166.80 pence each in London near midday Tuesday.
By Greg Roxburgh; [email protected]
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