3i Infrastructure - 3i Infrastructure plc - Pre-close update
3i Infrastructure plc - Pre-close update
Portfolio performing well; 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
Portfolio performing well: The portfolio continues to demonstrate its resilience to the effects of Covid-19. Most portfolio companies have met or exceeded the expectations we set at the start of the Period, although lower power price forecasts, ongoing effects of the pandemic and the slow recovery in air travel will affect some portfolio company valuations at the half year end.
· Follow-on investments:
- Tampnet agreed to purchase a 1,200km offshore fibre cable system in the
- 3i Infrastructure committed additional capital to ESVAGT to fund further growth in its offshore wind servicing segment
· Good portfolio income in the Period: Total portfolio income and non-income cash was slightly ahead of expectations at
· FY21 dividend target: The Company is on track to deliver its dividend target for the year ending
· Strong available liquidity: The Company's cash balance was
The portfolio overall performed well during the Period. We remain cautious about the speed of the recovery in economic activity and conscious of further Covid-19 related risks, but we have a portfolio that is continuing to prove resilient. We note the prolonged effects of the pandemic on the air travel sector, which will have an effect on TCR; and the reduction in power price expectations which will affect the value of Attero and Infinis, despite strong operational performance by both companies in the Period.
Joulz exceeded expectations in the Period, with no noticeable impact from Covid-19. Both Valorem and Ionisos also performed strongly. Valorem's operating portfolio benefitted from favourable wind conditions, good availability, and a partial refinancing, while a number of new projects became operational. Ionisos has benefitted from cold sterilisation being an essential service to the healthcare and pharma industries.
Tampnet, the world's leading operator of offshore fibre communications networks, agreed to purchase a 1,200km offshore fibre cable system in the
ESVAGT has seen no noticeable impact from Covid-19 on the wind sector or on the operational performance of the business. As expected, the relatively low oil price has led to reduced demand in the emergency rescue and response segment. The Company committed to invest further capital into ESVAGT to fund continuing growth in its offshore wind servicing segment, with three new vessels due to commence operations in the next year.
TCR performed slightly ahead of our expectations during the Period, supporting its clients through the crisis in the aviation sector and seeing increasing interest in its full service rental business model from a broad range of existing and potential new customers. However, we now expect a more prolonged period of gradual recovery to previous air traffic levels. This will be factored into the half year valuation of TCR.
Oystercatcher performed in line with expectations. The oil products market continues to be in contango despite the oil price increases since May as European countries started to ease government restrictions, but we have seen reduced throughput activity across the Period as a whole.
The portfolio is delivering a good level of income. Total portfolio income and non-income cash was
As usual, an important element of the determination of the Company's results for the half-year to
The Investment Manager continues to see a good flow of potential new investment opportunities across the Company's target markets, and expects to invest the Company's cash balance in due course.
For information, please contact:
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Chair, 3i Infrastructure plc
+44 1534 847 410
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+44 20 7975 3469
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+44 20 7975 3021
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
3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the
This press release is not for distribution (directly or indirectly) in or to
This statement aims to give an indication of material events and transactions that have taken place in the period from
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