Ports of Auckland interim profit down 10pc

By NZPA

Monday 17th February 2003

Auckland's maritime gateway, Ports of Auckland, has recorded a 10 percent fall in interim profit due to a drop in capital.

The company has posted a half year profit of $20.4 million for the half year to December 31, down from $22.745 million in the corresponding 2001 period.

The company announced a fully imputed dividend of 15c per share payable on March 21.

Total operating revenue was $82.1 million, up from $77.1 million in the previous period. Total operating profit before unusuals and tax was $31 million, down from $33.96 million.

However, company-wide earnings before interest and tax (ebit) -- before unusual items -- rose 6 percent to $36.6 million compared with the first half last financial year.

Port operations earnings before interest and tax rose 8 percent to $32.1 million on $75.5 million revenue which was also up thanks to higher volumes.

Chairman Neville Darrow said the result was "very pleasing" because port operations covered the bulk of its business.

"Growth in container volumes is very pleasing, productivity continues to improve and tight control was held on costs," he said.

The company's investment property and marinas division had an ebit of $4.4 million ($4.8 million), reflecting a drop in leasing income after the sale of ferry assets for $10 million in June last year.

However, berth-licence sales at Westhaven Marina were expected to have a favourable impact on the full year result.

POA acknowledged the fall in overall profit but said the return on shareholders' funds improved in line with the more appropriately structured balance sheet. The after tax surplus incorporated an increased interest expense of $5 million.

Container volumes finished the half year up 11 percent, chief executive Geoff Vazey added.

Total ship calls for the half year dropped 3 percent to 1062, but the arrival of the bigger 4100-TEU ships had put its new container handling division to the test, prompting "innovative use of on-wharf container handling space".

Mr Vasey said volumes were on track for a solid full year performance.

"On the global front, indications are that port operations would not be affected greatly by a US war with Iraq," he added.

Comments from our readers

No comments yet