Port of Tauranga builds profit, increases total trade

Port of Tauranga has posted a 10% jump in interim profit and says it is well prepared for the challenges of operating in a recessionary environment.

The port’s net profit of $22.54 million for the half year ended December 31 came on the back of a 6% jump in total trade.

Container volumes were up 6% to 289,000 twenty-foot equivalent units (TEUs).

Log exports were up 26%, wood pulp exports were up 18% and coal imports were up 48%.

Port of Tauranga has maintained its fully imputed interim dividend of 9c a share.

The port’s chairman John Parker emphasises the company’s “very strong” balance sheet, with a debt to debt plus equity ratio of 29% and an interest cover of 4.8 times.

A small part of the port’s debt – $35 million – was rolled over during the period and now matures at the end of 2009.

The company’s remaining $225 million of debt matures on December 31, 
2010.

Mr Parker says the port does not know the extent of the challenges it will face in 2009 and has implemented cost reduction measures.

“However, we are not shying away from investing for future growth, having just bolstered our strategic landholdings by a further 4.4 hectares, following the execution of the Carter Holt Harvey partnership agreement.

This now brings our total landholdings to 185 hectares, including an additional 13.7 hectares of land purchased over the last twelve months.

“It remains very difficult to accurately forecast the remaining half of this financial year, with our customers not having much visibility on demand outlook, but at this stage we expect to post a full year result similar to last year’s earnings.”


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7280 -0.0004 -0.05%
AUD 0.9481 0.0015 0.16%
EUR 0.6491 0.0002 0.03%
GBP 0.5593 0.0008 0.14%
HKD 5.6430 -0.0022 -0.04%
JPY 73.9870 0.4700 0.64%

Commods

Commodity Price Change Time
Gold Index 1321.0 -5.860 2016-09-28T00:
Oil Brent 49.2 2.720 2016-09-28T00:
Oil Nymex 47.0 2.380 2016-09-28T00:
Silver Index 19.1 -0.050 2016-09-28T00:

Indices

Symbol Open High Last %
NZX 50 7305.4 7349.8 7290.4 0.73%
NASDAQ 5311.3 5317.0 5318.6 -0.65%
DAX 10545.6 10575.3 10438.3 -0.31%
DJI 18322.9 18366.2 18339.2 -0.79%
FTSE 6849.4 6941.1 6849.4 1.02%
HKSE 23828.6 23828.6 23619.7 0.51%
NI225 16606.3 16756.4 16465.4 1.39%
ASX 5412.4 5473.3 5412.4 1.09%