POA promises special payout

The port company has recorded a profit of $44.25 million for the year ended June, up slightly on last year's $42.83 profit.

Revenue fell to $148.8 million from $153.3 million last year on the back of a drop in property earnings.

Chairman Neville Darrow says the port operations, represents the bulk of the company's activities, grew revenue by 1% from $137.5 million.

However as expected revenues from the port property segment, which includes marinas, fell from $19.3 million last year to $12.7 million. In 1999-00, marina revenues were boosted by America's Cup activity.

POA shareholders can meanwhile look forward to increased payouts from the company.

Mr Darrow says the directors have agreed on a change in dividend policy and are reviewing the company's capital structure.

Since 1996 POA has paid steady ordinary dividends of 18 cents per share with special dividends along the way, but this has been revised to place greater emphasis on ordinary dividends.

"This change recognises that many of our smaller shareholders invest in Ports of Auckland as a utility stock that produces regular and steady returns with reasonable certainty," says Mr Darrow

"In future, subject to meeting the cash needs of the company, ordinary dividends will represent 75% of after-tax profits and will continue to be paid in two installments at the half year and full year."

Mr Darrow said that the directors have also determined that a review of the company's capital structure should be undertaken to establish the optimum level of capital required.

"The review is scheduled to be completed by 30/09/2001 and the likely outcome is that funds surplus to the company's reasonable needs will be returned to shareholders."

In the meantime the company has announced an increased final dividend to 12 cents per share from last year's 9-cent payout.

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