SP AusNet (SPN)

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General Information
Company Name: SP AusNet
Stock Code: SPN
Website: www.sp-ausnet.com.au
GICS Sub-Industry: Multi-Utilities
Market Cap ($M): 4,675
Equiv. Shares (M): 3,425

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.365 $ 1.355 $ 1.370 $ 1.350 $ 1.350 6,782,546 $ 0.015  1.111 %

Current Broker Consensus Recommendation more
Recommendation: Hold (2.6667)
Recommendation Date: 29th Jul 2014
Brokers Surveyed: 3

Company Overview

Business Description:
SP AusNet (SPN) is engaged in the diversified energy infrastructure business in Australia. SPN operates Victoria's primary electricity transmission network and electricity distribution network in eastern Victoria plus a gas distribution network in western Victoria. SPN has four main divisions, including Electricity Distribution, Gas Distribution, Electricity Transmission and Select Solution.

Strategy Analysis:
SPN's strategy is to invest in energy networks in Australia and New Zealand and also position itself to participate future acquisition opportunities of publicly-listed, privately-held or government owned energy network businesses. Near term focus is on the improvement of existing networks through capacity upgrades, network efficiencies and customer growth. SP AusNet reported NPAT up 15.6% to $169.0m for the half-year ended 30 September 2012. Revenues from ordinary activities were $884.5m, up 6.5% from the same period last year. The company achieved an EBITDA for the period of $525.0m, an increase of $32.0m or 6.5% over the previous corresponding period. This has been achieved as a result of higher revenues earned across all businesses. Basic and Diluted EPS was 1.52 cents compared to 1.47 cents last year. Net operating cash flow was $290.6m compared to $251.5m last year. The interim dividend declared was 4.1 cents compared with 4.0 cents last year.

Financial Summary
Year to Mar NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 259.5 7.5 -4.1 18.2 8.4 6.1 33.0
2015  F 266.9 7.8 -3.9 17.4 8.4 6.1 33.0
2014  A 275.0 8.1 10.7 15.0 8.4 6.9 33.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Spark Infrastructure (SKI) $2,808 M -0.1671 -- -- 17.5527 -- -- 0.0574 -- --
SP AusNet (SPN) $4,607 M -0.1814 0.1803 0.0364 19.2418 16.3030 15.7310 0.0622 0.0622 0.0637

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SPN 0.99 18.4 1.34 1.74 2.54
Market 1.01 16.6 1.26 2.17 1.67
Sector 0.99 18.0 1.08 10.00 2.32

Name Position Start Date
Mr Nino Ficca Managing Director 31 May 2005
Mr Kee Choe Ng Non-Executive Chairman 31 May 2005
Mr Ian Andrew Renard Non-Executive Director 31 May 2005
Dr Ralph Howard Craven Non-Executive Director 24 January 2014
Ms Tina R McMeckan Non-Executive Director 09 August 2010
Mr Antonino (Tony) Mario Iannello Non-Executive Director 06 June 2006
Tian Yee Ho Non-Executive Director 01 September 2008
Ms Sally Marie Farrier Non-Executive Director 24 January 2014
Mr Jianxing Sun Non-Executive Director 24 January 2014

Name Position
Geoffrey W Nicholson Chief Financial Officer
Adam Newman Chief Financial Officer and General Manager Finance
Susan Taylor Company Secretary, General Counsel
Alistair Parker General Manager Asset Management
Mario Tieppo General Manager Information and Communication Technology
John Kelso General Manager Select Solutions
John Azaris General Manager Service Delivery
Chad Hymas General Manager Strategy & Business Development

Substantial Shareholders
Holding Name
1,053,234,802 (31.10%) Singapore Power International Pte Ltd
204,628,941 (6.13%) Allan Gray Australia Pty Ltd
673,934,809 (19.90%) State Grid Corporation of China

Calendar of Events
Date Event
12 June 2015 Report (Annual)
14 May 2015 Report (Prelim)
11 November 2014 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.


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