Port of Tauranga boosts six-month profit by 18 percent

By NZPA

Wednesday 26th February 2003

Port of Tauranga increased its six-month net profit by 18 percent to $14.5 million but warned of a slowing economy in the second half.

The port company will pay an interim dividend of 6c per share on March 21, compared with 11cps for the same period last year. The dividend will be paid on the higher number of shares resulting from last year's two-for-one share split.

Chairman Fraser McKenzie said the result for the six months ended December was on increased revenue of $70.6 million from $43.4 million for the same period a year ago, and included the first full six months' contribution from Owens Services BOP.

Total import and export trade through the port rose 4.5 percent to 6.09 million tonnes, with a 5.9 percent lift in export and import tonnage up by 0.8 percent.

Container trade rose 4.7 percent to 169,741 TEUs (20-foot equivalent units), in line with forecasts.

Export volumes rose for logs, sawn timber and paper products, milk powder, steel and general goods exports, but fell for butter, cheese and kiwifruit.

On the import side, higher volumes of general goods and grain offset a decline in oil products, fertiliser and salt.

Mr McKenzie warned that forecasts had pointed to economic conditions slowing in the short term.

"We remain committed to further efficiency gains and continued delivery of benefits from our multi-port strategy, our investment in subsidiaries, and our openness to assess other opportunities that will build on the company's previous success."

Container volumes remained relatively flat but were expected to lift from the new service being introduced by Mediterranean Shipping Company (MSC).

MSC's new direct service, which will also make a South Island call, will employ 14 vessels to offer fixed-day, weekly services.

Interest and financing costs of $6.25 million were up from $2.98 million, reflecting the financing of last year's $67 million capital return to shareholders and the funding of the port's investments in Owens Services BOP and Northport.

Northport's interim net profit was $1.45 million, of which Port of Tauranga's share was $638,000.

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