Port of Tauranga

Interim Result 2006 to 2007

Posted on 21st February 2007

The Port of Tauranga has announced a record year-to-date operating profit of $21.246 million for the six month period to 31 December 2006, an increase of 56% over the previous first half. This result includes abnormal items totalling $1.8 million relating to land sales associated with the HarbourLink Roading project and termination of the Carter Holt Harvey / Northport joint venture at Marsden Point. After adjusting for these abnormal items, the result represents a 43% increase over the previous first half.

Interim dividend has been increased 14% from 7 to 8 cents per share and is fully imputed, payable on 16 March 2007.

While log volumes through the Port at 1.155 million tonnes were 7% down from the 2006 first half, the overall profit position comes on the back of a total trade increase of 9% over last year, at 6.874 million tonnes. Cargo volumes of note include coal (increasing 8%), oil products (7%), fertiliser bases (25%), sawn timber (27%), and wood pulp (6%). Container numbers through the Port increased 21% to 254,191 TEUs (twenty foot equivalents).

Continuing efficiency gains at the Port's container terminal contributed significantly to the result, which was also assisted by a recovery in bulk trade for our associated companies, Northport and Toll Owens, according to Chairman John Parker.

"The $21.246 million profit for the Group for the six months is an excellent result and demonstrates the future earning potential of the Company. Although the second half of this year will be adversely affected by the Maersk decision, Directors confidently expect the full year result to be well ahead of last year."

Constructive merger discussions with Ports of Auckland continue. The merger would generate substantial public benefits and provide the potential for significant financial and efficiency gains. Moreover, it will ensure New Zealand retains its own port company with world class container terminals in both Auckland and Tauranga into the future. It is the Board's intention to make a final decision by 31 March.

For further information please contact:

John Parker
Chairman
Port of Tauranga Limited
Ph: 0274 421 854
http://www.port-tauranga.co.nz