REG - Macquarie Korea I F - 2014 First half financial and traffic results <Origin Href="QuoteRef">088980.KS</Origin>
06/09/2014 22:41
For best results when printing this announcement, please click on the link
below:
http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140731:nRSe8345Na
RNS Number : 8345N
Macquarie Korea Infrastructure Fund
31 July 2014
31 July 2014
MACQUARIE KOREA INFRASTRUCTURE FUND
REPORTS HALF-YEAR FINANCIAL AND TRAFFIC RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Macquarie Korea Infrastructure Fund ("MKIF") today announced its interim
financial results for the six months ended 30 June 2014 (the "Period"),
together with the asset performance results for the Period.
Highlights for the Period include:
§ On a non-consolidated basis, MKIF achieved revenue and net income of KRW
90.7 billion and KRW 63.9 billion, respectively. Excluding the one-offs 1 ,
the revenue and net income increased by 1.6% and 5.0%, respectively, compared
to the previous corresponding period ("pcp")
§ On a weighted average basis 2 , actual traffic volume and revenues of the
underlying assets increased compared to pcp by 7.2% and 6.6%, respectively.
During the Period, the three newly opened assets 3 have reached approximately
75% of the Concession Agreement forecast volume
§ Key operational highlights of Busan New Port Phase 2-3 ("BNP") include:
- Achieved approximately 0.68 million TEUsduring the Period, a 21.0% increase
compared to pcp
- Anticipates higher volume for the second half given the seasonality effect
and growing demand for terminal services in the New Port
- Expects to generate approximately KRW 72 billion of revenues for FY2014
based on a target volume of 1.5 million TEUs
- The capacity expansion is well underway for completion by the second
quarter of 2015 which is expected to bring 0.7 million TEU of additional
service capacity to BNP
- The New Port's total volume recorded 5.9 million TEUs during the Period, a
10.2% growth compared to pcp 4
§ On 7 February, MKIF refinanced its KRW 250 billion revolving credit
facility for a new 5-year facility
- Interest margin reduced by 90bps from 270bps to 180bps over the base rate
of 91-day CD rate
- Maturity extended by 2.7 years to March 2019
- Expected interest savings per annum of approximately KRW 1.7 billion over
the next five years
§ Three assets, which together represent 18.9% of MKIF's portfolio 5 , are
currently going throughlegal proceedings against the respective government
authorities, seeking cancellation of the administrative orders for the
reinstatement of the original capital structures
- Gwangju 2nd Beltway Section 1 ("KBICL"): KBICL appealed to the Supreme
Court in January 2014 / KBICL filed a separate claim to the Central
Administrative Appeals Commission against Gwangju City's order to suspend
minimum revenue guarantee payment to KBICL in June 2014
- Baekyang Tunnel / Soojungsan Tunnel: The ruling by the District Court of
Busan City expected in the third quarter of 2014
- All other assets in MKIF portfolio have either had no or minor changes in
the capital structure or had changes based on prior approval of the respective
relevant government authorities
§ MKIF remains financially healthy with conservative balance sheet position:
- Proportionately consolidated cash balance 6 of KRW 203.1 billion
- Continued de-gearing of asset level debt with a weighted average maturity
of 7.6 years
- MKIF net debt of KRW 348.6 billion with no significant external financing
needs until May 2018 7
- Proportionately consolidated gearing 8 of 38% with 64% of interest
obligations fixed 9
§ The final Interim Distribution for the Period approved by the board of
directors of MKIF today is KRW 193 per share, reflecting the one-off income on
the Liquidation Dividend from CNEC ABS SPC (tranche 3). It will be paid on 12
August 2014 to MKIF's shareholders as at the record date of 30 June 2014.
Financial Results
(Unit: KRW million)
Six month to 30 June 2014 Six month to 30 June 2013
Revenue 90,711 97,186
Interest income 87,325 85,940
Dividend income 3,3861 11,2462
Operating Expenses 26,779 26,747
Management fee 14,530 15,508
Interest expense 9,290 9,945
Other expenses 2,959 1,294
Net Income 63,932 70,439
EPS (KRW) 3 193 213
Normalised Net Income 4 62,177 59,193
Normalised EPS (KRW) 4 188 179
1. One-off Liquidation Dividend income from CNE ABS SPC (tranche 3)
2. One-off Liquidation Divided income from CNE ABS SPC (tranche 1 and
tranche 2)
3. Based on the number of shares outstanding of 331.5 mil shares
4. Excludes one-off income and expense
Traffic Results
2014 2nd Quarter 2014 First Half
Asset Traffic (%)1 Revenue (%)2 Traffic (%)1 Revenue (%)2
Weighted average growth 6.8% 6.2% 7.2% 6.6%
1. Percentage increase from prior corresponding period, based on average
daily traffic
2. Percentage increase from prior corresponding period, based on average
daily revenue
For further information, please contact:
Jason PakChief Operating Officer Macquarie Korea Infrastructure Fund+ 82 2 3705 8550Jason.Pak@macquarie.com Ally AnInvestor Relations Macquarie Korea Infrastructure Fund+ 82 2 3705 8565Ally.An@macquarie.com
This release is not an offer or solicitation for sale of the securities of
Macquarie Korea Infrastructure Fund ('MKIF') in the United States or in any
jurisdiction where any offer, sale or solicitation in respect of such
securities is not permitted. Securities may not be offered or sold in the
United States absent registration or an exemption from registration under the
U.S. Securities Act of 1933, as amended (the "Securities Act"), or in any
jurisdiction where such offer or sale is not permitted. The securities of MKIF
have not been registered under the Securities Act, and may not be offered or
sold in the United States absent registration or exemption from registration
under the Securities Act. There will be no public offer of the securities in
the United States.
Not for distribution in the United States or in any jurisdiction where any
offer, sale or solicitation in respect of the contemplated securities is not
permitted.
This document is only being distributed to and is only directed at (i) persons
who are outside the United Kingdom or (ii) investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and
other persons to whom it may lawfully be communicated, falling within Article
49(2)(a) to (d) of the Order (all such persons together being referred to as
"relevant persons"). Any securities will only be available to, and any
invitation, offer or agreement to subscribe, purchase or otherwise acquire any
securities will be engaged in only with, relevant persons. Any person who is
not a relevant person should not act or rely on this document or any of its
contents.
This release does not take into account the investment objectives, financial
situation and particular needs of the investor. Before making an investment in
MKIF, the investor or prospective investor should consider whether such an
investment is appropriate to their particular investment needs, objectives and
financial circumstances and consult an investment adviser if necessary.
MKIF or Macquarie Korea Asset Management Co., Ltd.(MKAM) is not an authorised
deposit-taking institution for the purposes of the Banking Act 1959
(Commonwealth of Australia). The obligations of this entity do not represent
deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542
(MBL). MBL does not guarantee or otherwise provide assurance in respect of
the obligations of these entities.
Investments in MKIF are subject to investment risk, including possible delays
in repayment or loss of income and/or capital investment. Neither MKIF, nor
any member of the Macquarie Group companies, including MKAM, guarantees the
performance of MKIF, the repayment of capital or the payment of a particular
rate of return on MKIF securities.
This release contains forward-looking statements. All forward-looking
statements are our management's present expectations of future events and are
subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements.
Appendix1. Financial results (Unaudited, non-consolidated basis)
Statements of Financial Position
As at 30 June 2014, 31 December 2013 and 30 June 2013
(Unit: KRW millions)
30 June 2014 31 December 2013 30 June 2013
Assets
Ⅰ.Invested Assets 1,658,766 1,637,919 1,691,415
Cash & deposits 15,196 14,751 25,118
Loans receivable 1,090,467 1,090,065 1,092,046
Equity securities1 553,103 533,103 574,251
Ⅱ.Others 418,650 404,246 387,401
Interest receivables 409,589 394,913 376,782
Other receivables 2,347 2,947 2,946
Deferred costs, net 6,714 6,386 7,673
Total Assets 2,077,416 2,042,165 2,078,816
Liabilities
Accounts payables 1 251 1
Management fee payable 7,396 7,400 7,931
Other liabilities 1,444 1,503 1,482
Long-term debt 140,557 68,581 123,705
Bond 249,421 249,333 249,244
Total Liabilities 398,819 327,068 382,363
Shareholders' Equity
Share Capital 1,670,986 1,670,986 1,670,986
Retained Earnings 7,611 44,111 25,467
Total Shareholders' Equity 1,678,597 1,715,097 1,696,453
Total Liabilities and Shareholders'Equity 2,077,416 2,042,165 2,078,816
1. Pursuant to the Financial Investment Services and Capital Market Act, MKIF
reports all its unlisted equity investments at acquisition cost. These are
unaudited numbers and as such may be subject to change
Statements of Income
For the half-years ended 30 June 2014 and 30 June 2013
(Unit: KRW million)
Six month to 30 June 2014 Six month to 30 June 2013
Ⅰ. Revenue 90,711 97,186
Interest income 87,325 85,940
Dividend income 3,386 11,246
Ⅱ. Expenses 26,779 26,747
Management fees 14,530 15,508
Custodian fees 165 166
Administrator fees 103 104
Interest expense 9,290 9,945
Other expenses 2,691 1,024
Ⅲ. Net Income 63,932 70,439
Appendix 2. Traffic and Revenue
1. Traffic Volume and Traffic Revenue - Portfolio Summary
On a weighted average basis 10 , traffic and revenue increased by 6.8% and
6.2%, respectively, during the second quarter (the Quarter), when compared to
pcp. On the same basis, traffic and revenue for the Period increased by 7.2%
and 6.6%, respectively, on pcp. The highlights from the traffic results
include:
§ The traffic growth of the portfolio during the Period was largely
attributable to:
- The three newly opened assets 11 delivered stable traffic ramp-up of
7.8% 12 growth on pcp
- Traffic for Incheon International Airport Expressway and Incheon Grand
Bridge increased due to a higher number of airport users travelling the road
§ Traffic volume of Machang Bridge increased significantly of 55.2% during
the Period on pcp due to the new road connection (Yanggok-Wanam route of the
national highway and Changwon-Busan Expressway:stage 2) from 13 October 2013
Traffic for each toll road asset is calculated as the average daily traffic
volume. Except as stated otherwise, revenues for each toll road asset
represents actual average daily revenue collected (excluding VAT). Actual
revenue collected does not include minimum revenue compensation payments
receivable from the relevant government authority or the toll freeze
compensations related to the CPI growth. Accordingly, revenue performance in
the concession companies is not a direct guide to the revenue performance of
MKIF.
The revenue growth recorded by the concession companies in which MKIF invests
reflects growth of traffic volume and inflation linked toll rate increases,
and may also be influenced by changes to the traffic mix, between heavy and
light vehicles, for which different toll rates apply.
2014 Second Quarter 2014 First Half % of MKIFPortfolioc
Asset Traffic (%)a Revenue (%)b Traffic (%)a Revenue (%)b
Incheon International Airport Expressway 9.7% 3.8% 9.7% 3.2% 6.7
Baekyang Tunnel 0.5% 0.6% 0.9% 1.0% 0.1
Gwangju Second Beltway, Section 3-1 0.9% 0.9% 1.5% 1.4% 4.8
Gwangju Second Beltway, Section 1 4.2% 4.9% 4.6% 5.1% 12.8
Woomyunsan Tunnel 5.3% 5.3% 5.6% 5.5% 1.2
Cheonan-Nonsan Expressway 3.5% 3.9% 4.9% 5.3% 16.4
Soojungsan Tunnel 3.7% 3.9% 3.5% 3.7% 6.0
Machang Bridge 58.5% 60.1% 55.2% 57.1% 6.8
Yongin-Seoul Expressway 6.6% 6.7% 7.0% 7.0% 8.2
Seoul-Chuncheon Expressway 2.4% 2.5% 2.9% 3.2% 8.3
Incheon Grand Bridge 11.3% 10.4% 12.6% 11.8% 9.9
Weighted Average 6.8 % 6.2% 7.2% 6.6% -
a Percentage increase from prior corresponding period, based on
average daily traffic
b Percentage increase from prior corresponding period, based on
average daily revenue
c Percentage based on total commitments by MKIF to all investments
in the MKIF portfolio
2. Traffic and Revenue - Individual Concession Company Performance
Incheon International Airport Expressway
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 54,929 60,273 9.7% 52,322 57,419 9.7%
Average daily revenue (1,000 won) 355,471 368,817 3.8% 341,969 352,852 3.2%
Note: Traffic for the Quarter increased compared to pcp due to Cheongra
IC opening in July 2013. Discounted toll rate (small vehicle: from KRW 8,000
to KRW 7,600) applied to reflect the traffic inflow from Cheongra IC and
resulted lower traffic revenue increase than volume increase.
Baekyang Tunnel
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 72,783 73,146 0.5% 71,574 72,183 0.9%
Average daily revenue (1,000 won) 52,168 52,493 0.6% 51,280 51,779 1.0%
Gwangju Second Beltway, Section 3-1
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 33,910 34,218 0.9% 32,747 33,223 1.5%
Average daily revenue (1,000 won) 35,835 36,168 0.9% 34,592 35,079 1.4%
Gwangju Second Beltway, Section 1
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 40,987 42,727 4.2% 39,031 40,835 4.6%
Average daily revenue (1,000 won) 43,062 45,165 4.9% 41,048 43,152 5.1%
Note: Traffic and revenue for the Quarter increased compared to pcp due
to the increase in the traffic inflow from a connecting road from Kwangju to
Hwasoon which opened in October 2013
Woomyunsan Tunnel
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 25,934 27,311 5.3% 24,857 26,240 5.6%
Average daily revenue (1,000 won) 56,016 58,987 5.3% 53,701 56,661 5.5%
Note: Traffic and revenue for the Quarter increased compared to pcp due
to additional traffic from Woomyun area residence from completion of a new
apartment complex
Cheonan-Nonsan Expressway
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 45,123 46,724 3.5% 43,295 45,405 4.9%
Average daily revenue (1,000 won) 375,273 390,063 3.9% 360,222 379,310 5.3%
Soojungsan Tunnel
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 43,518 45,141 3.7% 42,862 44,376 3.5%
Average daily revenue (1,000 won) 31,747 32,996 3.9% 31,258 32,403 3.7%
Machang Bridge
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 16,289 25,811 58.5% 15,466 23,999 55.2%
Average daily revenue (1,000 won) 35,914 57,509 60.1% 34,017 53,445 57.1%
Note: Traffic and revenue for the Quarter increased significantly
compared to pcp due to the new road connection from 13 October 2013
Yongin-Seoul Expressway
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 71,121 75,825 6.6% 68,128 72,893 7.0%
Average daily revenue (1,000 won) 127,467 135,953 6.7% 122,076 130,677 7.0%
Note: Traffic and revenue for the Quarter increased compared to pcp due
to the increase in the traffic from higher residence occupancy in the region.
Average daily traffic volume up to the end of the Quarter was 79% of the CA
forecast
Seoul-Chuncheon Expressway
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 40,288 41,232 2.4% 36,946 38,025 2.9%
Average daily revenue (1,000 won) 256,535 262,963 2.5% 234,410 241,891 3.2%
Note: Average daily traffic volume up to the end of the Quarter was 76%
of the CA forecast
Incheon Grand Bridge
Category PCP Year on Year
Q2 2013 Q2 2014 % change 1H 2013 1H 2014 % change
Average daily traffic (vehicles / day) 30,979 34,478 11.3% 29,390 33,083 12.6%
Average daily revenue (1,000 won) 161,233 178,030 10.4% 153,318 171,401 11.8%
Note: Traffic and revenue for the Quarter increased compared to pcp due
to more airport users travelling the road. Average daily traffic volume up to
the end of Quarter was 71% of CA forecast
3. Prior Period Compensation Payments Received from Government
Authorities
The concession companies may receive revenue compensation payments from the
relevant government authority in addition to revenue received from traffic.
Generally, revenue compensation and other compensation payments are received
within 6 to 18 months after the end of the year to which they relate.
There are outstanding MRG receivables for the remaining to be paid for some of
the assets and negotiation is underway with the relevant government
authorities to expedite the overdue payments.
(Unit: KRW million)
Asset Name MRG receivable for 2013 Outstanding amount1
Amount Received amount Due date without additional interest
Incheon International Airport Expressway 101,838 - February 2015 -
Baekyang Tunnel 6,351 - April 2014 11,5242
Gwangju Second Beltway, Section 1 21,114 - December 2014 20,2613
Gwangju Second Beltway, Section 3-1 6,434 - December 2014 6,0224
Woomyunsan Tunnel 5,605 - February 2014 12,5725
Cheonan-Nonsan Expressway 52,184 - February 2015 -
Soojungsan Tunnel 11,827 - April 2014 13,6886
Machang Bridge 13,087 - February 2014 13,0877
Yongin-Seoul Expressway 7 - February 2015 -
Seoul-Chuncheon Expressway 9,833 - February 2015 -
Incheon Grand Bridge 13,830 - February 2015 -
1. Including all unpaid and overdue compensations
2. Unpaid amount from 2010 to 2013 (2010: 1,894mil, 2011: 1,321mil, 2012:
1,958mil, 2013: 6,351mil). Deferred interest is currently in effect and
payment of the remaining amount is under negotiation with Busan Metropolitan
City (BMC)
3. Unpaid amount of 2012. Gwangju Second Beltway, Section 1 (KBICL) received
an administrative order from Gwangju Metropolitan City (GMC) notifying it of
the suspension of MRG payment.(the Order) KBICL filed a claim to the Central
Administrative Appeals Commission against the Order
4. Unpaid amount of 2012. GMC plans to pay the remaining amount after the
current legal proceedings between GMC and K1 are finalized. Negotiation is
underway to advance the payment
5. Unpaid amount from 2011 to 2013 (2011: 2,713mil, 2012: 4,255mil, 2013:
5,605mil). Deferred interest is currently in effect and payment of the
remaining amount is under negotiation with Seoul Metropolitan City
6. Unpaid amount from 2011 to 2013 (2011: 935mil, 2012: 926mil, 2013:
11,827mil). Deferred interest is currently in effect on the remaining amount
and negotiation is underway with BMC
7. Unpaid amount of 2013. Deferred interest is currently in effect on the
remaining amount and negotiation is underway with Gyungsangnam-do (Provincial
government)
1 . 2014: KRW 3.4 billion of the Liquidation Dividend from the CNEC ABS SPC
(tranche 3) and one-off expense of KRW 1.6 billion with regard to the
arrangement fee of previous revolving credit facility
2013: KRW 11.2 billion of the Liquidation Dividend from the CNEC ABS SPC
(tranche 1 and tranche 2)
2 . On a weighted average basis based on revenue size of each asset and the
MKIF's equity interest in each concession company
3 . Yongin-Seoul Expressway, Seoul-Chuncheon Expressway and Incheon Grand
Bridge
4 . Tentative estimation, provided by BNP, could be different from Busan Port
Authority's official count
5 . On a commitment basis
6 . Proportionately consolidated cash balance (including MKIF cash balance of
KRW 15.2bn)
7 KRW 60 billion 5-year fixed rate bonds scheduled to mature in May 2016
8 . Gearing = MKIF Net Debt/( MKIF Net Debt + MKIF market capital(3-month
average)), where MKIF Net Debt = Proportionate net debt from assets +
Corporate net debt. Excludes shareholder loans
9 . Hedging (Fixed) = Proportionately consolidated MKIF net debt adjusted for
fixed debt / Proportionately consolidated MKIF net debt
10 . On a weighted average basis based on revenue size of each asset and the
MKIF's equity interest in each concession company
11 .Yongin-Seoul Expressway, Seoul-Chuncheon Expressway and Incheon Grand
Bridge
12 . Weighted average daily traffic during 1st half of 2014 over 1st half
of2013
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Macquarie Korea Infrastructure Fund
See all newsREG - Macquarie Korea I F - Baekyang Tunnel and Soojungsan Tunnel to file... <Origin Href="QuoteRef">088980.KS</Origin>
AnnouncementREG - Macquarie Korea I F - Record date and 2H distribution guidance <Origin Href="QuoteRef">088980.KS</Origin>
AnnouncementREG - Macquarie Korea I F - General shareholders meeting <Origin Href="QuoteRef">088980.KS</Origin>
AnnouncementREG - Macquarie Korea I F - Cancellation of listing and trading of GDR <Origin Href="QuoteRef">088980.KS</Origin>
AnnouncementREG - Macquarie Korea I F - 2015 MKIF audited financial statements... <Origin Href="QuoteRef">088980.KS</Origin>
Announcement