TIDM3IN
RNS Number : 1901N
3i Infrastructure PLC
19 January 2023
19 January 2023
3i Infrastructure plc - Q3 Performance update
Strong growth momentum across the portfolio
3i Infrastructure plc ('3iN' or the 'Company') is an investment
company whose purpose is to invest responsibly in infrastructure,
delivering long-term sustainable returns to shareholders and having
a positive impact on our portfolio companies and their
stakeholders.
This statement relates to the period from 1 October 2022 to 31
December 2022 (the 'Period').
Highlights
-- Portfolio performing strongly: Overall the portfolio has
performed well in the Period , exceeding the expectations we set in
September 2022, and continues to deliver strong performance.
-- New contracts delivering portfolio company growth: During the
Period, strategically important contracts were signed by TCR,
Ionisos, GCX, Tampnet and ESVAGT. Infinis and Valorem also made
good progress in growing their respective renewable development
pipelines.
-- Completion of further investment in TCR and partial
syndication: Following the completion of the acquisition of DWS's
stake in TCR in October, 3iN completed the syndication of a 28%
stake for proceeds of c.GBP190 million in November.
-- Portfolio company financings: TCR signed a term loan to repay
its revolving credit facility and secured a new capex facility to
fund growth projects. Joulz has also raised additional fixed rate
debt to repay its revolving credit facility.
-- FY23 dividend target: The Company is on track to deliver the
FY23 dividend target of 11.15 pence per share, up 6.7% from FY22,
which we expect to be fully covered by net income.
-- Income exceeded expectations in the Period: Total income and
non-income cash of GBP55 million was received in the Period, ahead
of expectations. This compares with total income and non-income
cash of GBP26 million received in the same period last year.
Scott Moseley and Bernardo Sottomayor, Managing Partners and
Co-Heads of European Infrastructure, 3i Investments plc, Investment
Manager of the Company, commented: "We are pleased with the
momentum in the portfolio, which continues to trade ahead of our
expectations. The contracts we have announced demonstrate the
growth our companies are experiencing, and their resilience,
underpinned by the megatrends we have identified."
Portfolio update
Infinis 's plans to develop solar energy generation and battery
storage are progressing well. The company's combined development
pipeline is now 1.5GW. Similarly, Valorem closed 74MW of wind
projects in France and Greece during the Period and benefits from a
healthy 5.7GW pipeline of mainly wind and solar projects in
Europe.
We expect the additional details announced during the Period by
UK and European governments regarding a levy or price cap on
electricity generators to have a limited negative impact, which,
when considered together with movements in power prices during the
Period, will not result in a significant impact on the September
2022 valuation of 3iN's three renewable generation companies,
Infinis, Valorem and Attero.
We have commenced preparations for a potential divestment of
Attero . Attero is a high quality asset in the energy transition
sector and we are expecting significant interest from potential
purchasers. Any sale proceeds are expected to contribute towards
partially repaying drawings on 3iN's Revolving Credit Facility
('RCF').
Following completion of the acquisition of the DWS stake in TCR
and subsequent syndication, TCR now represents 14% of the
portfolio. TCR had a number of significant contract wins in the
Period and it continues to experience increasing demand for its
full service rental model. During the Period TCR also completed the
bolt-on acquisition of Adaptalift, an Australian headquartered
ground service equipment lessor, adding incremental EBITDA to the
business.
Ionisos has signed an agreement to acquire E-beam sterilisation
facilities for c.EUR25 million, from Studer Cables AG, a
manufacturer of cable solutions and systems located in Daniken,
Switzerland. In a capacity constrained market, the acquisition will
increase Ionisos's ability to address and meet strong underlying
demand growth for sterilisation, whilst diversifying its technology
mix and expanding the geographic footprint from which it will
service its medical and pharma client base. We expect 3iN will
invest c.EUR5 million into Ionisos to fund this acquisition, with
the balance coming from Ionisos's own resources.
ESVAGT 's offshore wind joint venture in the United States,
CREST, signed its first contract in January 2023. Under the terms
of the 15 year agreement with Siemens Gamesa, it will deliver and
operate a new vessel to service the large Coastal Virginia Offshore
wind park . This win represents an incremental step up in earnings
and a key milestone in converting ESVAGT's promising wind farm
Service Operation Vessel ('SOV') pipeline in the US market. The
pipeline for further new SOVs in the North Sea and the United
States is strong. Market conditions and contractual terms within
ESVAGT's Emergency Rescue and Response Vessel segment also remain
robust, underpinned by an increasing emphasis on security of energy
supplies in the North Sea.
Tampnet continues to benefit from demand growth in its end
markets, which is translating to strong growth in its underlying
EBITDA. During the Period, Tampnet signed important contracts in
both the North Sea and Gulf of Mexico, and announced that it has
become a reseller of Starlink bandwidth as a complementary offering
to its core fibre, cellular and private network products.
GCX has secured a significant Managed Services contract in the
Period and is experiencing increasing demand for bandwidth capacity
across its network. GCX and Tampnet have announced a strategically
important partnership which supports the increasing network
connectivity demands of the data centre market in the Nordics.
In line with expectations, we invested a further EUR18 million
into DNS:NET in support of its continued fibre roll-out in the
Berlin area. We are actively working with the company to optimise
its business model and strengthen the management team in order to
deliver our investment plan.
New debt finance continues to be available for high quality
infrastructure companies. TCR and Joulz successfully raised further
debt financing which will be utilised to repay and replenish their
respective revolving credit facilities enabling the funding of
further growth of their revenue generating asset bases.
Balance sheet
At 31 December 2022, the Company's cash balance was GBP75
million, with drawings of GBP555 million under the GBP900 million
RCF. This cash balance was subsequently reduced by the payment of
the interim dividend of GBP50 million in January 2023.
Ends
For information, please contact:
Thomas Fodor Shareholder enquiries +44 20 7975 3469
Kathryn van der
Kroft Media enquiries +44 20 7975 3021
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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's purpose is to invest responsibly
in infrastructure, delivering long-term sustainable returns to
shareholders and having a positive impact on our portfolio
companies and stakeholders.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and is the investment manager of 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
2022 to 31 December 2022 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 changes 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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