Marsden Maritime net profit down on lower cargo through Northport

Wednesday 20th February 2019

Marsden Maritime Holdings said its net profit was down 16.1 percent as a result of lower bulk cargo through Northport.

The Whangarei-based company, which owns half of Marsden Point-based Northport, said net profit was $4.4 million in the six months through December versus $5.3 million in the prior year. Overall cargo throughput at Northport was down 11 percent at 1.699 million tonnes, with log volumes decreasing by 9.8 percent. Total revenue was down 3.1 percent at $7.2 million.

Looking ahead, however, chief executive Felix Richter said volumes in the second six months are forecast to improve compared to the first six months of the year.

Chairman John Goulter added that “the parent company has continued its growth in revenue from other activities, and these are expected to improve, with the operating surplus for the full year still anticipated to be a positive improvement on last year."

Marsden and Port of Tauranga each own 50 percent of Northport, and Marsden also owns 100 percent of Marsden Cove and Marina. The company itself is about 54 percent owned by Northland Regional Council and 19.9 percent by Ports of Auckland.

Its investment property portfolio was valued at $68.4 million on Dec. 31, versus $66.8 million a year earlier. It also said it has just reached an unconditional agreement to build and lease to a multinational client two substantial bulk storage warehouses on its land at Marsden Point, adjacent to Northport.

Preliminary work on the project has already commenced and the first warehouse is expected to be occupied from July 1. The second warehouse is scheduled to be completed and ready for occupation from mid-September. The total budget for the project is some $8 million. Also, a block of four commercial units is under construction with completion due in April.

The board declared a fully imputed interim dividend of 6.75 cents, payable on March 22 and unchanged from the prior year.

The shares were unchanged at $5.25.

(BusinessDesk)

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