Boston, MA 05/12/2014 (wallstreetpr) – Brookfield Infrastructure Partners L.P. (NYSE:BIP) kicked off 2014 on a positive note. The company reported financial results for the first three months of ended March 31 that showed significant improvement from a year earlier.
In addition to the positive results, the company announced various investment plans through which it expects to spend between $500 million and $1 billion in the current year. As such, the company looks to attaining growth through organic efforts and acquisitions. The majority of the planned investments at about $600 million will go into supporting the energy and transport operations.
The company also promised more disciplined costs and expenses management throughout 2014 and beyond with the aim of finding support for the bottom-line from various sources.
1Q2014 at a glance
Brookfield Infrastructure Partners L.P. (NYSE:BIP) reported total funds from operations (FFO) of $86 million or 89 cents per unit in the quarter. That compared with FFO of $160 million or 80 per unit in the same period a year earlier. Therefore, FFO increased 16 percent on a year-over-year basis and 11 percent per unit. The earnings per unit of 89 cents exceeded the expectation of analysts by a penny.
Revenue in the quarter was $553 million, up 4.5 percent over the same period in 2013.
The results captured the improving performance in each of the company’s operating segments, a trend that the management promised to maintain throughout 2014. Furthermore, the management said continued focus on organic initiatives coupled with new acquisitions should support long-term growth of both top-line and bottom-line.
Executive comment
Brookfield Infrastructure Partners L.P. (NYSE:BIP) CEO Sam Pollock observed that the positive 1Q more than justifies the restructuring efforts that the company has been undertaking. As such, the CEO said the company is not only positioned for future growth, but has also gained clarity on the specific areas that need more investments and type of new acquisitions to pursue. The company looks to inking deals for five new acquisitions before the end of this year.
