Alinta tips strong interim profit -


Alinta Ltd is expecting a strong result for its interim report on the back of weather-driven seasonality in its retail business.
It said underlying operations, the effects of the transaction with Australian Gas Light Company Ltd (AGL), and significant items would add between $75 million and $79 million to the net profit result.
Underlying operations were tipped to contribute between $65 million and $67 million after business units had a strong operating performance.
This represented a 40 per cent uplift from the $42.3 million reported for the first half of 2005.
The AGL transaction, which sees Alinta acquire AGL's infrastructure business Agility for $6.45 billion and AGL takes a one-third stake in Alinta's retail and co-generation business, will add between $7 million and $8 million to the net profit figure.
Significant items includes the deferred recognition of profit associated with the second instalment of the proceeds from the Alinta Infrastructure Holding's initial public offering would add between $3 million and $4 million to the figure.
Alinta chief executive Bob Browning said the strong result was a reflection of the company's business strategy.
"It's sometimes easy to lose sight of the fact that we have lifted our underlying earnings by more than 40 per cent over the first half of last year," he said.
"This is a significant achievement under any circumstances and a reflection of the strategy we have successfully executed over a sustained period."
Chief financial officer Stephen Pearce said it was pleasing to see the strong operational earnings throughout the period of the AGL transaction.
In the first half of 2005 the company reported a net profit after tax of $42.3 million.
Shares in Alinta had picked up 22 cents to $10.18 by 1501 AEST Thursday.
© 2006 AAP