REG - 3i Infrastructure - Performance update Q1 2024

3i InfrastructureAnnouncement

06/07/2023 07:00

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RNS Number : 1125F  3i Infrastructure PLC  06 July 2023

 

6 July 2023

 

3i Infrastructure plc - Performance update Q1 2024

 

Continued growth and strong performance 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 influence on our
portfolio companies and their stakeholders.

 

This statement relates to the period from 1 April 2023 to 30 June 2023 (the
'Period').

 

Scott Moseley and Bernardo Sottomayor, Managing Partners and Co-Heads of
European Infrastructure, 3i Investments plc, Investment Manager of the
Company, commented:

 

"Our carefully constructed and highly differentiated portfolio continues to
deliver strong trading momentum and growth, providing a catalyst for
reinvestment in our businesses. We expect this strong performance to continue
to drive growth in real terms. We note that there is no material refinancing
risk in 3iN's portfolio, and that it benefits from inflation linkage and is
aligned with long-term megatrends. We believe that the portfolio is well
positioned to outperform 3iN's target return."

 

 

Highlights

 

·    Portfolio continues to perform strongly, displaying continued
earnings momentum, inflation linkage and generating attractive further growth
opportunities:

 

- ESVAGT has signed a ten year contract with Ørsted to deliver an additional
new Service Operation Vessel in support of the Hornsea 3 wind park. Once
operational, this will be one of the largest vessels in ESVAGT's fleet,
replicating the innovative e-methanol hybrid solution featured in the design
of its sister vessel, also contracted with Ørsted. The new contract further
evidences ESVAGT's position as market leader in the fast-growing offshore wind
vessel support market and increases the offshore wind proportion of ESVAGT's
contracted revenues to c.80% on a pro forma basis;

 

- TCR continues to experience faster growth than expected in our base case. In
June, it signed a nine-year large rental contract with a global customer
across multiple jurisdictions in Europe, Australia and the US that will alone
generate an additional c.10% growth to TCR's run-rate EBITDA. This new
contract is part of a broader framework agreement with the same customer that
is likely to generate further revenue growth and is illustrative of the very
strong demand TCR is experiencing from a wide range of clients for its rental
solutions;

 

- On 14 April, Tampnet acquired dasNetz AG, a leading provider of offshore
wind telecommunications connectivity in the German sector of the North Sea;
this acquisition represents an important step in broadening Tampnet's network
coverage and further establishing and deepening its presence in the
fast-growing offshore wind segment;

 

- Future Biogas is making good progress on its development pipeline. It is in
the final stages of negotiation with a large corporate offtaker of the gas
produced by the first plant to be developed under our ownership. Works are
expected to start in the second half of 2023;

 

- On 15 June, 3iN made a further investment into DNS:NET of €24 million to
fund the continued growth of its fibre network.  Ralph Steffens has been
appointed co-CEO, strengthening the existing management team. Ralph has a
25-year track record in telecommunications, including experience rolling out
fibre networks;

 

- On 22 June, Ionisos completed the acquisition of an additional sterilisation
facility in Daniken, Switzerland, for a consideration of CHF25.2 million. This
acquisition expands Ionisos's geographical footprint into the important Swiss
market as well as adding capacity to its existing e-beam portfolio, a
technology experiencing fast-growing customer demand. The acquisition was
funded by Ionisos's existing resources and a €5 million equity investment
from 3iN.

 

·    Attero: the exit process is progressing in line with our forecast
timetable, with signing expected in Q2 FY24.

 

·    Income in line with expectations in the Period: Total income and
non-income cash in the Period was £55 million, up 53% from the same period
last year.

 

·    Final FY23 dividend payment and FY24 target: Payment of the final
dividend for FY23 of 5.575 pence per share is due to be made on 10 July 2023.
The Company is on track to deliver the FY24 dividend target of 11.90 pence
per share, up 6.7% from FY23, which is expected to be fully covered by net
income.

 

·    No material near-term refinancing risk in the portfolio: As disclosed
in the full year 2023 results, there are no material refinancing requirements
in the portfolio until 2026. As at the Period end date, c.95% of portfolio
company debt is either hedged or fixed rate and we expect that 90% of
portfolio company debt will mature beyond the next three years.

 

 

Sustainability

 

On 5 April 2023, the Investment Manager wrote to the Science Based Targets
initiative ("SBTi") to indicate its commitment to set near-term science-based
targets for 3i Group plc ('3i'). The Investment Manager is now working to
formulate its targets, with the intention to submit them to SBTi for
validation in FY24. Its science-based targets will cover 3i's direct Scope 1
and 2 emissions, as well as the Scope 3 emissions associated with the 3iN
portfolio and will be formulated in line with the guidance published by SBTi
for the private equity sector.

 

 

Balance Sheet

 

At 30 June 2023, the Company had available liquidity of £345 million,
including a cash balance of £60 million, and undrawn commitments of £285
million available under its £900 million Revolving Credit Facility ('RCF').
The RCF commitments run to November 2025, with a further one year extension
option available under the terms of the facility which we expect to exercise
in due course. Subject to approval at the AGM on 6 July 2023, this cash
balance will be reduced by the payment of the final dividend of £51 million
on 10 July 2023.

 

Ends

 

 

For information, please contact:

 

 Thomas Fodor           Shareholder enquiries  +44 20 7975 3469
 Kathryn van der Kroft  Media enquiries        +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's
purpose is to invest responsibly in infrastructure, delivering

long-term sustainable returns to shareholders and having a positive influence
on our portfolio companies and their 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 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 April 2023 to 30 June 2023 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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