Amber Infrastructure fund INPP reports growing assets and profits after investments in National Grid and Thames Tideway Tunnel

 
William Turvill
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Amber Infrastructure’s listed fund today reported a 24 per cent growth in net asset value for the end of 2016, a year in which it invested £489m in 18 projects, including the National Grid gas pipes.

The figures

International Public Partnerships’ (INPP) net asset value for the year was £1.6bn, up from £1.3bn in 2015.

The firm, which was “instrumental” in bringing together an international consortium for the takeover of the National Grid’s £14bn gas pipes network, also reported pre-tax profits of £175.3m, more than double the £79.9m recorded in 2015.

Read more: National Grid plans special divi after £14bn sale of its gas network

INPP announced a full-year dividend of 6.65p, up from 6.45p. It also set a minimum dividend target of 6.82p for 2017 and 7p for 2018.

Why it’s interesting

During the year, INPP, which was listed by Amber in 2006, invested £70.2m in the Thames Tideway Tunnel and £26.8m in the Westermost Rough offshore transmission project.

Its biggest investment of the year, due to complete tomorrow, was a £275m investment in the National Grid’s gas distribution network.

Amber chief executive Giles Frost told City A.M. how INPP was “instrumental” in bringing together an international consortium for the deal, which valued the pipes at nearly £14bn.

The group was made up of CIC Capital, a subsidiary of China’s sovereign wealth fund, the Qatar Investment Authority (QIA), Australian investment bank Macquarie and Germany’s Allianz Capital Partners, as well as British firms Hermes Investment Management and Dalmore Capital.

Read more: Consortium pipes up with offer for £11bn Grid network in time for deadline

What the company said

Frost said:

I’m incredibly proud of the fact that we run a listed fund and the only way if you’re a man or woman on the street that you can get an investment exposure to an asset like gas distribution networks now is by owning a share in [INPP].

There have been concerns raised about some of the companies involved in the bid, but Frost made clear that INPP is careful with the companies it chooses to work with.

He added:

We are stewards of national infrastructure, there’s no doubt about it. Across our portfolio, we invest in assets of total value £7-8bn… which are crucial at every level.

They’re crucial at a health and safety level, people live and work in them, they send children to school in our assets. There’s a huge public duty which goes with these assets.

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