News Article
NEWS ARTICLE
Port of Tauranga Announces Robust Half Year Result
Posted on 28th February 2008
The Port of Tauranga has today announced an un-audited net profit of $20.459 million for the six months ended 31 December 2007, compared with a $21.500 million (restated for NZ IFRS adjustments) for the same period last year.
Last year's results included non-recurring profits of $1.8 million which related to land sales and the termination of the Carter Holt Harvey agreement at Northport. After adjusting for these items, this period's result represents a 4% increase over the previous half.
Trade for the period was 6.518 million tonnes, which is 5% down on last year. The reduction is largely due to coal imports being down 384,811 tonnes (or 61%) on last year's volume, which was partially offset by a 66% increase in grain and palm kernel expeller imports (palm kernel expeller is used as a dairy food supplement). Log exports were similar to last year, and on a more positive note, container volumes were up 8% on last year at 274,158 TEUs (twenty foot equivalent units).
Chairman John Parker said "The half year result is considered a robust performance, representing a normalised 4% increase in earnings on reduced trade. Management have continued a strong focus on costs whilst continuing to maintain best in class productivity."
"We have a very strong balance sheet with a debt to debt plus equity ratio of 29% and an interest cover of 5.1 times. This has allowed Directors to increase the interim dividend payment again this year by 12%, from 8 cents to 9 cents per share." The interim dividend is fully imputed, payable on 28 March 2008 to shareholders of record on 14 March 2008.
Chief Executive Mark Cairns said "The future outlook for the Port remains positive with the very strong performance in the container terminal over the last quarter and also with encouraging signals from log exporters, who are reporting price increases into Korea and China, along with a fall in bulk shipping charter rates."
"The recent announcement by the world's third largest container shipping line CMA CGM to relocate from Ports of Auckland to Port of Tauranga provides a timely example of our progress towards becoming New Zealand's primary North Island hub port. To cater for the increased container growth, we have recently negotiated an agreement with Toll Rail to add 60 new generation wagons into the MetroPort Auckland rail service and have accelerated the purchase of a fifth container gantry crane. Work is also progressing to secure resource consents to dredge our shipping channels and berth pockets to 14.5 metres draught (all tides) to accommodate the next class of container ships expected in New Zealand waters over the medium term."
Chairman Parker said "The fundamentals of the business remain very strong. Although we are yet to fully understand the effects of any US led economic slowdown, Directors confidently expect the full year result to be ahead of last year."
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
www.port-tauranga.co.nz