RE:RE:Strong Chart IPL was and is paying for HPC out of its own FFO as well as contributing profits to BIPC's balance sheet. I'm sure that none of the raised capital was going towards HPC and was probably going to being used for the acquisition of the Australian Utility AUSNET.
I say was as the renewed NCIB has the potential to pull back all of that raised capital.
It seems obvious to me that management had anticipted costs that did not materialize. I would attribute a lot of that to an underestimated FFO from IPL which had the HPC costs in hand before the full return of NG demand.
IPL was a money printing machine before HPC and now that those costs are winding down profits are outweighing costs and already adding value to BIP's bottom line.
I am much more optomistic about owning BIP with IPL than owning PPL without IPL and the share prices of each seems to reflect that the market feels the same.
Just wait unitl HPC starts up and efficively doubles IPL's already high FFO.
zalmonella wrote: Strength? What strength? Apart from the pump to get the IPL deal through, the chart is where it was last year. And I think you're a bit optimistic looking for a "steady rise". The MD&A doesn't say they're having any troubler getting gas to distribute in Britain, but everyone is, so I'm sure that's true for BIPC too.
I'm sure some of the capital they just raised was likely for the British gas system expansion that they said they would spend $466M on, and a bit for Heartland (I think IPL last said they needed another $150M to finisht he job, so just double that, will ya? But the rest? Are they shopping around for something else?
If nothing else, they've bumped up the divvy next March, so that might provide a teeny bit of buzz next year, but what with all the recourse loans and non-rcourse loans and three different shares, the rest of the business is too complex to value properly, so you're stuck with whatever news trickles out that people think might give it a bump.