Argo Global Listed Infrastructure share price jumps on ‘strong outperformance’

The Argo Global Infrastructure Ltd (ASX: ALI) share price is performing well in Monday’s session. The listed investment company (LIC)‘s shares are currently up 3.88% at $2.68 each, defying the gloom of the broader market.

This share price gain comes after Argo Global Infrastructure reported its full-year earnings for the 2022 financial year this morning.

What did the company report?

• Net profit of $29.9 million, up 59% on $18.8 million for FY21
• Net tangible assets (NTA) of $2.45 per share, up 4.3% from $2.35 at the end of FY21
• Final and fully franked dividend of 4.5 cents per share, unchanged from FY21 final dividend
• Full-year dividend of 8 cents per share, also unchanged from FY21

What else happened in FY22?

Argo reports that its Argo Infrastructure portfolio delivered a return of 12.2% for the 12 months to 30 June 2022. That vastly outperformed the S&P/ASX 200 Accumulation Index’s loss of 6.5%.

The company cited a weaker Aussie dollar, as well as returns from “midstream energy pipelines and storage assets, in the wake of Russia’s invasion of Ukraine” as factors in this portfolio performance.

What did management say?

Here’s some of what Argo Global Infrastructure’s management had to say on the results:

Despite challenging macro-economic conditions and considerable volatility over recent months, global infrastructure stocks have continued to display resilience. When broader global and local equities plunged -4.7% and -8.8% respectively in June this year, global listed infrastructure fell just -2.1%.

This strong relative performance reflects the generally defensive characteristics of the asset class and demonstrates its downside protection and low correlation to broader equities.

What’s next?

Going forward, Argo Global Infrastructure’s management is expecting that “strong private investor demand for infrastructure assets is set to continue“, both in Australia and globally.

The company also stated that “in the immediate term, we expect the outlook for infrastructure stocks will continue to be shaped by macroeconomic factors, including higher inflation, rising interest rates and the potential for slower economic growth”.

Argo Global Listed Infrastructure share price snapshot

The Argo Global Infrastructure share price has had a strong showing in recent months. That perhaps reflects the strong performance of its underlying investment portfolio. The LIC is currently up 12.5% in 2022 so far, and 15% over the past 12 months.

At the current Argo Global Infrastructure share price, this ASX LIC has a market capitalisation of $452 million, with a dividend yield of 2.9%.

The post Argo Global Listed Infrastructure share price jumps on ‘strong outperformance’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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