Port of Tauranga milks good result

By Phil Boeyen, ShareChat Business News Editor

Wednesday 29th August 2001

The country's strong dairy export trade is partly behind a record net profit at the Port of Tauranga.

The port company has made a profit of $21.4 million for the year ended June, an increase of 14% over last year's $19.65 million.

Chairman Fraser McKenzie says the result demonstrates that the port's business diversification strategy is working well for shareholders and customers.

"The port has lifted its profit by 14% in a year when the log trade - traditionally a major contributor to overall revenue - was in decline."

Mr McKenzie says despite that contraction, trade volumes have for the first time exceeded 10 million tonnes, with container traffic also up 22%.

Revenue rose $76.7 million from $69.9 million in the previous year.

Mr McKenzie says in a year of strong performances, one commodity in particular stood out - dairy products.

"The port last year became New Zealand's largest dairy export port, and has further enhanced this leadership position in the financial year under review.

"Over the past two years, new shipping services have committed to calling at Tauranga, providing improved access to overseas markets for New Zealand's dairy products."

Exports of dairy products through the port in the year ended June increased by over 25% to 692,400 tonnes. More than a third of all New Zealand's export dairy products now pass through the Tauranga facility.

"Had the port confined itself to the narrow role of operating as a provincial port, the tale would have been different," says Mr McKenzie.

A new 7,000 square metre dairy shed, capable of handling 30% more dairy cargo, is due to open at the port next month, in time for the new dairy season.

The expansion of the company's Metroport in Auckland to 24 hour, seven days a week service was another milestone, the company says.

Earnings per share for the year rose from 25.7 cents in 2000 to 29.3 cents and the directors have recommended shareholders be paid a fully imputed final dividend of 15 cents per share. The final payout makes a total of 24 cents a share, up from 22 cents last year.

Earlier this month the company announced plans to return surplus capital of $67 million to shareholders on a pro rata basis, cancelling one in every eight shares held.

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