Diversified Utility and Energy Trusts (DUET) Results for Year Ended 30 June 2005, Increased 2006 Distribution Flagged - Released by Macquarie International Infrastructure Fund's Investment in DUET

29 August 2005

Diversified Utility and Energy Trusts (DUET) today announced its financial results for the year ended 30 June 2005.  DUET also provided distribution guidance for 2006 of at least 22.5 cents per stapled unit.

DUET achieved consolidated operating revenues of $772.0 million for the year, approximately 46% above the previous corresponding period (pcp) and in line with the forecast in DUET’s November 2004 Product Disclosure Statement (PDS)¹.  DUET also reported consolidated net profit after tax and outside equity interests of approximately $59.7 million for the year, approximately 67% above the pcp and 98% ahead of the PDS forecast.

Mr Philip Garling, DUET Chairman said, “Unitholders who acquired holdings in DUET at last July’s initial public offering have been rewarded with a 26% total return based on last Friday’s closing price – a great outcome for any investment.

“Going forward, based on modelling by DUET management, the Directors are confident in projecting a minimum level of distributions for 2006 of 22.5 cents per stapled unit.  This means a forecast distribution increase of at least 2.3% on the year just completed.”

Mr Peter Barry, DUET Chief Executive Officer said, “DUET has delivered pleasing results for the 2005 financial year, reflecting solid performances by the four asset companies in the DUET portfolio and the value of our active asset management strategy.

“Multinet and United Energy Distribution each continued to deliver quality service to customers while containing costs and pursuing opportunities for organic growth.  During the year, mild weather in Victoria resulted in some minor negative impacts for Multinet but they were offset by a corresponding positive outcome for UED.  This is a good example of the benefits of our asset and energy source diversification strategy.  AlintaGas Networks also posted solid results over the year.

“Complementing this, Dampier Bunbury Pipeline, which was acquired on 27 October 2004, performed to expectations despite the significant changes required in the eight months (since acquisition) to transition operational management and implement key initiatives such as the pipeline expansion program.

“The combined strength and diversity of these businesses within the DUET portfolio has enabled DUET to lift its 2005 total distribution to investors above that forecast at the time of the IPO.” Mr Barry said.

DUET has declared a 2005 total distribution of 22 cents per stapled unit, ahead of the 21.7 cents per stapled unit forecast in the Supplementary PDS for DUET’s IPO.  The 22 cent distribution represents a yield of 9.6% on the IPO price of $2.29 per stapled unit.

Mr Barry said that DUET expects to provide further guidance on its distribution outlook after the final decision on the 2006 Electricity Distribution Price Review (EDPR) for UED, expected in late September this year.

“DUET and its asset companies are committed to seeking regulatory outcomes that foster both cost efficiency and value so as to deliver quality services to customers and benefits for unitholders,” Mr Barry said.

“DUET is continuing to work with United Energy Distribution in its negotiations with the Victorian Essential Services Commission regarding the final decision on the 2006 EDPR.” 

Mr Barry said DUET’s Directors and management team are optimistic about DUET’s growth outlook.

“DUET’s assets are amongst the best in their class in Australia and underpin DUET’s goal to provide growing and predictable returns to investors over time,” Mr Barry said.

“The broader energy and utility market in Australia and New Zealand is also quite active currently and this is expected to continue to throw up investment opportunities.

“DUET is well positioned to actively participate in any industry consolidation and continue to grow its portfolio for the benefit of investors.”

DUET Results Summary

* for the period from 26 June 2003 to 30 June 2004.  DUET was established on 26 June 2003
^ after tax and outside equity interest

• Download Full Year Results Presentation (pdf 1.2 MB)

¹ DUET’s November 2004 Product Disclosure Statement (PDS) was for the capital raising supporting DUET’s acquisition of a 60% interest in the Dampier to Bunbury natural gas pipeline

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