TIDM3IN
RNS Number : 9772M
3i Infrastructure PLC
27 January 2021
27 January 2021
3i Infrastructure plc - Q3 Performance update
Resilient portfolio performing in line with expectations
On track to meet dividend target, up 6.5% year-on-year
3i Infrastructure plc ("3i Infrastructure" or the "Company") is
an investment company whose purpose is to deliver a long-term
sustainable return to shareholders from investing in
infrastructure. This statement relates to the period from 1 October
2020 to 31 December 2020 (the "Period").
Highlights
-- Portfolio performing well: The portfolio continues to be
resilient through the ongoing Covid-19 pandemic, meeting our
expectations.
-- Follow-on investments:
- The Company completed the acquisition in December of further
stakes in our Dutch PPP projects from our co-shareholders Fluor
Infrastructure and Heijmans Nederland for a total equity investment
of c.EUR25 million.
- The acquisition of the BP fibre cable system by Tampnet in the
Gulf of Mexico is progressing and completion is expected by the end
of the financial year.
-- Income as expected in the Period: Total income and non-income
cash was GBP24 million for the Period, in line with our
expectations. This compares with GBP44 million of income and
non-income cash received for the same period last year. We
continued to retain liquidity at portfolio company level during the
Period, which reduced dividend income and non-income cash compared
to last year.
-- FY21 dividend target: The Company is on track to meet its
dividend target for the year ending 31 March 2021 of 9.8 pence per
share, a year-on-year increase of 6.5%.
-- Strong available liquidity: The Company's cash balance was
GBP481 million at 31 December 2020 before payment of the interim
dividend of GBP44 million in January 2021. The full revolving
credit facility of GBP300 million is also available.
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, commented:
"During the Period we have been pleased by the resilient
performance of our portfolio and have continued to progress a
number of potential investment opportunities from our pipeline. Our
markets remain very competitive despite the uncertainties caused by
the pandemic, but we are maintaining our investment discipline and
continue to focus on investments that we believe will enhance the
Company's portfolio."
Portfolio update
Overall our portfolio continues to perform in line with our
expectations. Most of the companies have performed well, continuing
to meet or exceed our expectations, notwithstanding the uncertain
operating and economic conditions arising from the effects of the
pandemic.
For TCR, we expect that approval and rollout of vaccines should
support our assumption of a longer term return to pre-pandemic
levels of air travel by 2024. However, the tightening of travel
restrictions across Europe will adversely affect the shape of
recovery in 2021.
Power prices have increased in the period due to positive news
around Covid-19 vaccines and higher commodity prices. If
maintained, this would benefit our portfolio companies that
generate electricity: Infinis, Valorem and Attero.
ESVAGT continues to expand its operations supporting the growing
offshore wind industry. In January, the company put into service
the first of three new vessels to support MHI Vestas in maintaining
the Borssele III-IV (Netherlands) / Triton Knoll (UK) windfarm.
The end of the UK's transition period following Brexit and the
conclusion of an agreement on the future trading relationship with
the EU has, as expected, had no noticeable effect on our portfolio
companies.
Balance sheet
At 31 December 2020, the Company's cash balance was GBP481
million, with the full revolving credit facility of GBP300 million
undrawn and available to fund potential new investment
opportunities and to invest in portfolio companies if needed. The
interim dividend of GBP44 million was paid in January 2021.
GBP104 million of deferred proceeds (including accrued interest)
from the sale of WIG was received in December 2020 with a similar
amount due in December 2021.
The Company received proceeds of GBP29 million from the 3i India
Fund's sale of Krishnapatnam Port in December 2020. This
represented the majority of the value in that Fund.
Ends
For information, please contact:
Richard Laing Chair, 3i Infrastructure plc +44 1534 847 410
Thomas Fodor Shareholder enquiries +44 20 7975 3469
============================== =================
Kathryn van der
Kroft Media enquiries +44 7721 886 304
============================== =================
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust, listed on the
London Stock Exchange and regulated by the Jersey Financial
Services Commission. The Company is a long-term investor in
infrastructure businesses and assets. The Company's market focus is
on economic infrastructure and greenfield projects in developed
economies, principally in Europe, investing in operating businesses
and projects which generate long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and acts as Investment Manager to 3i Infrastructure
plc.
This press release is not for distribution (directly or
indirectly) in or to the United States, Canada, Australia or Japan
and is not an offer of securities for sale in or into the United
States, Canada, Australia or Japan. Securities may not be offered
or sold in the United States absent registration under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or an
exemption from registration under the Securities Act. Any public
offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer or selling security
holder and will contain detailed information about 3i Group plc, 3i
Infrastructure plc, 3i India Infrastructure Fund and management, as
applicable, as well as financial statements. No public offering in
the United States is currently contemplated.
This statement aims to give an indication of material events and
transactions that have taken place in the period from 1 October
2020 to 31 December 2020 and their impact on the financial position
of 3i Infrastructure plc. These indications reflect the Board's
current view. They are subject to a number of risks and
uncertainties and could change. Factors which could cause or
contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors
affecting the financial prospects or performance of individual
investments within the portfolio of 3i Infrastructure plc.
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END
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