Port of Tauranga

Port Announces Robust Half Year Result

Posted on 25th February 2009

The Port of Tauranga has today announced an unaudited net profit of $22.540 million for the six months ended 31 December 2008 - a 10% increase on last year's result.

Total trade for the period was up 6% to 6.940 million tonnes, with container volumes also up 6% to 289,600 twenty foot equivalent units (TEUs). Noteworthy variances contributing to the increase in trade included: log exports up 26%, sawn timber exports up 9%, wood pulp exports up 18%, frozen meat exports up 13%, bulk liquid imports up 25%, coal imports up 48% and palm kernel imports up 87% on the previous year.

Chairman John Parker said "The half year result is considered a robust performance. Directors have maintained the interim dividend payment at nine cents per share, fully imputed and payable on 27 March 2009, to shareholders of record on 13 March 2009.

"The Company continues to maintain a very strong balance sheet with a debt to debt plus equity ratio of 29% and an interest cover of 4.8 times. During the period we rolled over a $35 million debt facility, which expired on 31 December 2008, for a further year, with the remaining $225 million of debt maturing on 31 December 2010. Our net borrowings at 31 December 2008 were $202.9 million.

"2009 will be a challenging year for our business" said John Parker. "We don't really know the extent of the challenges but will ensure we are well prepared for them. We have implemented cost reductions across the board. However, we are not shying away from investing for future growth, having just bolstered our strategic landholdings by a further 4.4 hectares, following the execution of the Carter Holt Harvey partnership agreement. This now brings our total landholdings to 185 hectares, including an additional 13.7 hectares of land purchased over the last twelve months. We will be lodging resource consent applications to dredge our harbour channels and sitting basins to 14.5 metres draught (all tides) in the next few months and our new ship to shore gantry crane is on schedule and will be commissioned in July 2009.

"It remains very difficult to accurately forecast the remaining half of this financial year, with our customers not having much visibility on demand outlook, but at this stage we expect to post a full year result similar to last year's earnings."

Chief Executive Mark Cairns said "The Company's positioning strategies have to a degree insulated the Company and our increasingly diverse trade mix is relatively defensive. On that note, it is pleasing to see a strong increase in cart-in of forestry cargo over the last month. Our business fundamentals remain strong and our relative competitive advantages are strengthening - the Company is New Zealand's Port for the Future."

For further details, contact:
John Parker
Chairman
Port of Tauranga Limited
Ph: 0274 421 854

Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829 or 021 978 887