The company which owns several key pieces of East Coast infrastructure is reporting a 17.4 percent rise in revenue to $36.1 million for the six months to the end of September.
Eastland Group today said its strong financial performance has been underpinne
The company which owns several key pieces of East Coast infrastructure is reporting a 17.4 percent rise in revenue to $36.1 million for the six months to the end of September.
Eastland Group today said its strong financial performance has been underpinned by a growing forestry sector fuelled in the main by strong demand out of Asian economies, in particular China.
Among the assets of the group, which is owned by the Eastland Community Trust, are East Coast electricity distribution company Eastland Network and some generation capacity, Eastland Port in Gisborne, Gisborne Airport and other aviation businesses.
The company said its tax paid profit for the half year was 15 percent higher than a year earlier at $4.6m.
A half year gross dividend of $3m was paid to the trust, and another dividend of the same amount was forecast to be paid before the end of the financial year. That would make a full year gross dividend of $6m, up 5 percent on the previous year.
Infrastructure at the port in Gisborne was under significant pressure from increased volumes which had led to the acceleration of a port development plan, Eastland Group said.
Work was under way on projects to help accommodate the growing log export volumes which this year were on target to top 1.3m tonnes.
The group's aviation businesses were badly affected by the recession but recent efforts by management to sell the existing stock of aircraft, reduce the level of spare parts and improve productivity had seen a marked improvement in financial performance, the company said.
Generation volumes from the Waihi hydro station have been strong due to a wetter than predicted winter, but electricity prices on the wholesale market have been low resulting in slight reduced revenues.
