Lyttelton Port of Christchurch reported a 35% fall in interim profit, while highlighting that it now handles more cargo from dairy giant Fonterra.Net profit after tax fell to $3.67 million in the six months to December 31 from $5.66 million in the same pe
Lyttelton Port of Christchurch reported a 35% fall in interim profit, while highlighting that it now handles more cargo from dairy giant Fonterra.
Net profit after tax fell to $3.67 million in the six months to December 31 from $5.66 million in the same period last year on a 2.4%t fall in revenue to $42.1 miliion.
Earnings before interest, taxation, depreciation and amortisation were $13.1 million. The interim dividend of 1.5c a share is payable on March 26.
"We anticipate that volumes will increase in the second half of the financial year, however, the year to June 30, 2010 remains very challenging," chief executive Peter Davie said.
"Our full-year net profit after tax expectation remains between $9 and $10 million as previously advised to the market, with the likelihood that the result will be at the bottom end of this range."
The company, which largely owned by Christchurch City and Port Otago, said it was in the fortunate position of holding an almost equal import to export trade balance, buffering it from extreme decreases in either sector.
Rationalisation of shipping services had reduced ship calls, but the volume of full containers increased by 3.4% from last year.
"The highlight of the six month period to 31 December 2009 was the signing of the contract with Fonterra to move the majority of its cargo from their Clandeboye [near Timaru] plant. The movement of this cargo began in earnest in October 2009 and continues to help grow the volume of full containers shipped through the port," Mr Davie said.
Coal volumes declined 9.7% to 855,213 tonnes due to a reduction in demand from steel makers and the industrial action experienced by Solid Energy in late 2009. The first shipment by Pike River Coal did not take place until February.
"We believe that full-year coal volumes will remain in line with those achieved in the 2009 financial year," Mr Davie said.
Log exports grew112% on the same period last year. Motor vehicle imports continued to decline while fuel has remained relatively unchanged. Fertiliser was steady.
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