SP AusNet
SP AusNet (SPN) is a leading energy delivery business, with operations in Australia and New Zealand. The Company is focused on the supply of gas and electricity along with the transmission of electricity. To date the company employs over 1,300 staff, engaged in the management of around $6.3 billion electricity and gas network, providing services in excess of one million consumers in south east Australia. SP AusNet listed on the Australian Stock Exchange on 14th of December, 2005.
Gas and Electricity distributor, SP Ausnet (ASX:SPN) has recorded an increase in net profit by 22.6 percent to $166 million in the first half of this financial year. The first 6 months to 30 September, the company posted a 10.1 percent rise in revenue with a 8.1 percent increase in EBITDA. SP Ausnet declared a dividend of 4 cents per share with 39.8 percent franked.
Peruse the dividend history for SP AUSNET. Dividends are a distribution of a company's profit to its shareholders and paid out in the form of a cash dividend. You are eligible to receive SPN dividends if you own the SP AUSNET shares on the ex-dividend date. Traders and investors must purchase the stock before the exdividend date to be entitled to the dividend. The previous owner of the shares will receive the SPN dividend if you buy the stocks on or after the ex dividend date.
Dexus Property Group (DXS), a major Australia based property Company that operates at more than 260 properties worth of A$15 billion, mainly concentrating on acquisition, management and development of retail, industrial and office properties in both Australia and other regions with market capitalisation $3955.9 million was the best performer of the 4th week in ASX100 with a gain of 1.2 percent or 1 cent to its stock price closing the week at 83 cents.
SP Ausnet (SPN) was the worst performing stock on the ASX200 index (loser of the week for week 37 of 2007) losing 15 cents or 10.7 percent of their share value, to close the week at $1.25 per share. Other big ASX200 losers this week were Adelaide bank (ADB) closing at $14.24, shedding $1.46 or 9.3 percent and Gunns (GNS) which lost 8.1 percent or 26 cents of their share value, closing at $2.95. Aussie dollar closed the week strongly at against the greenback at US 86.83 cents. Gold closed at $736.60. The Australian Stock Exchange All Ordinaries closed 6371.2. Finally, the ASX200 index closed at 6357.8. Read a previous SP Ausnet (SPN) update.
SP Ausnet (SPN) was the overall worst performing stock taking in a 10.71 percent decrease. It was a mixture of financial services, healthcare, energy and forest products companies who were among the worst performing stocks for the week 38 of 2007 on the Australian sharemarket: Bendigo Bank (BEN), Ansell (ANN), Sigma Pharmaceutical (SIP), SP Ausnet (SPN), Adelaide Bank (ADB), Gunns (GNS). These worst performing stocks for the week 38 recorded losses above 6.08 percent by the end of the trading week.
SP AusNet has a retained Buy 1 broker call and a share price target of $1.65 from stockmarket analyst UBS. SPN underlying performance marginally ahead of prospectus: Distributions remain unchanged against m'ment guidance of 11.27c/shr for FY07. Guidance for 2008 was given which implies a 2008 distribution of 11.55c/shr. Our forecast is 11.81c/shr which we have left unchanged. They see further scope for an increase in distributions: The underlying asset base (RAB) is growing at 7.0% which flows through to revenue and EBITDA growth against a low distribution growth estimate of 2.5%. This year distributions were comfortably paid from operating cashflows as well as part of the growth capex. All the assets have a comfortable A credit rating. Note two of their three assets are up for regulatory review this year. Singapore Power's Alinta assets: There was no further update on the move of the assets from Singapore Power to SP Ausnet. They confirmed that the assets acquired do fit within their mandate, including the Eastern Australia asset management business. Expect further updates in the second half following completion of the acqn in September. The analysts believe a capital raising of >$1bn would be required for all the assets. SPN's implied value if they use the sectors average yield and EBITDA results in a valuation of $1.53 and $1.91.
SP AusNet (SPN) has a restricted recommendation and share price target from stock market analyst UBS. Alinta may be acquired by the Sing Power/BNB consortium and review the potential new structure of SP Ausnet. On the assumption that the Alinta deal proceeds and SPN acquires all of Singapore Power assets then the new business would be well diversified amongst five different types of businesses and majority under regulatory reviews by the AER. If the analyst assumes the asset management business is situated in Victoria then they estimate 81% of the earnings of the 'new' SP Ausnet will be situated in Victoria. They anticipate that synergies of the businesses will be possible and the majority of the synergies would transferred to SP Ausnet security holders rather than moved under the management contract of Singapore Power. After management fees and before any synergies, the analyst estimates an EV/EBITDA multiple of 10.9x was paid for the AAN assets. On our 2008 estimates we believe that SPN is trading on 10.0x. A capital raising will be necessary in the second half. They estimate $2.6bn to be raised which since Sing Power is a 51% shareholder will require other security holders to contribute A$1.3bn.
SP AusNet (SPN) have a Buy 1 stock recommendation and a share price target of $1.49 from stock analyst and investment bank UBS. SP Ausnet remains UBS' top pick in the Transmission and Distribution sector. Their price target is 5 cents higher which is based on their "2007E DCF (7.4% WACC, 5.5% Rf). Based on this price target they are assuming an 7.8% net yield, 10.9% gross, 10.6x EV/EBITDA and 1.4x adjusted
RAB (Regulated AssetBase) multiple."
UBS have upgraded their rating for the SP Ausnet (SPN) stock to Buy 1. The analysts view the stock as one of the highest quality in the transmission and distribution sector. The recommendation comes as it find the stock below their IPO price of $1.38.
SP Ausnet Limited is listed on the Australian Stock Exchange (ASX) under stock code SPN. You can view their investor website here. The company is involved in electricity transmission and distribution and gas distribution. Check your charts!
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