Port of Tauranga seeks more liquidity

By Graeme Kennedy

Friday 30th August 2002

Port of Tauranga's 1:2 share split was aimed at increasing liquidity, value and the number of shareholders, CEO Jon Mayson said after the company reported a record $15.6 million net profit this week.

"The shares are trading around $7.80 and although a lot of people are interested in investing that figure seems to be a psychological barrier," Mr Mayson said. "They see it as too expensive and the split will bring the price back, increase liquidity and, over time, add value."

The split on November 8 will double the company's shares to around 134 million and trading of the new stock is expected to begin on November 11.

Mr Mayson pointed out that Port of Tauranga earlier this year returned $67 million to shareholders through a 1:8 share cancellation at $7 a share in a move to obtain a better debt-equity ratio.

The record profit, up 15.6% on last year, was achieved on revenues of $110.3 million - up 43.8% and including contributions from Owens Services which the company bought in February.

Total cargo increased 11.2% to 11.4 million tonnes while container traffic rose 12.5% to a record 322,500 20ft-equivalent units (TEUs).

Mr Mayson said the port had broadened its range of cargoes to move away from a predominately log and forestry products handler and since establishing its inland port at South Auckland two years ago had recorded huge increases in manufactured imports and exports.

Log shipments, which accounted for 40% of Tauranga's business seven years ago, were now 29% and forestry products were down from 59% to 50% while dairy had risen from 3% to 7% and general cargoes from 7% to 14%.

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