Port Nelson has reported an annual pre-tax profit of $12.86 million and is paying a $4.1 million dividend to its shareholders -- the Nelson City and Tasman District councils.The profit for the year to June 30 compares with $12.24m last year and the divide
Port Nelson has reported an annual pre-tax profit of $12.86 million and is paying a $4.1 million dividend to its shareholders -- the Nelson City and Tasman District councils.
The profit for the year to June 30 compares with $12.24m last year and the dividend is in line with the $4m paid last year.
The after-tax profit of $3.4m is after a $3.1m one-off tax expense relating to changes in rules for depreciation of buildings and compares with a $4.9m profit last year.
Revenue of $37.9m was little changed from last year.
Chairman Nick Patterson said it was a "satisfying result" despite the one-off building depreciation tax expense.
"While we have had to put a significant one-off tax expense through the books, this should not detract from what has been a very solid year, operationally speaking," he said.
Mr Patterson said it had been a positive year with cargo volumes of 2.754 million tonnes, which was 102,000 tonnes ahead of budget and just behind last year's record.
"The boom in log exports to China resulted in increased stevedoring activity and the trend to shipping more traditionally break bulk cargoes such as sawn timber and processed wood products in containers resulted in increased activity for our Quaypack business," he said.
Mr Patterson said the port would continue to invest in the infrastructure required to operate a multi-faceted port operation, while keeping capital expenditure at a sustainable level for the long-term viability of the business.
There had been some good results from investment on the environmental front, which included reducing and monitoring noise, and reducing the amount spent on water for dust mitigation by installing rain water tanks on cargo sheds.
Mr Patterson said while some shipping lines had managed to attain some degree of profitability, a recovery remained fragile.
"The decision by many lines to rationalise services has already created space issues for exporters during the peak season period and it is clear to everyone in the industry that a hierarchy of container ports is likely to emerge," he said.
"We see Nelson standing in the second tier of these ports with a mix of direct calling international services as well as coastal feeders taking cargo to a larger New Zealand port for export."
Changes in shipping services combined with a softening in the Chinese market for logs signalled very challenging times ahead, Mr Patterson said.
