Brookfield Infrastructure re-groups portfolio

Its assets will now be classified into utility, fee-for-service or timber business groups, which Brookfield believes will ‘better communicate our results’ to investors in the listed fund.

Six months after it bought into the sprawling portfolio of the Babcock & Brown Infrastructure fund, Brookfield Infrastructure Partners has re-organised its assets into business groups that it believes will “better communicate our results” to shareholders, according to a statement.

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The first group, utilities, will be composed of businesses that have either regulated returns or long-term contracts. This group will include the Dalrymple Bay Coal Terminal in Queensland, Chilean transmission line business Transelec, Ontario Transmission, New Zealand electricity and gas distributor Powerco, and the gas connections business of utility on the Isle of Man in the UK.

The second group, “fee for service”, will include businesses that earn access fees for their use, such as transportation, storage, energy and freight providers. It will include natural gas transmission pipeline NGPL, Australian rail business WestNetRail, ports businesses PD Ports and Euroports, the Tas Gas distribution network in Tasmania and the distribution business of IEG.

The third group will be comprised of Brookfield’s timber interests. These include 433,000 acres of timberlands in the Northwest United States and Canada.

Previously, the firm had reported its earnings broken down by utilities and energy, transportation and timber segments.

Overall, in the first quarter of 2010, the utilities segment posted $27.3 million in free funds from operation, or FFO, a measure of cash flow. The fee for service segment earned $26.4 million and the timber segment earned $1.8 million, totaling $55.5 million.

But corporate expenses of $10.9 million dampened the results, bringing the total FFO for the fund to $44.6 million.

In late morning trading on the New York Stock Exchange, Brookfield Infrastructure Partners shares stood at about $17.51, or down about 1 percent from their opening price.