Port of Tauranga profit falls 14pc

The Port of Tauranga today reported a 14 per cent fall in its December half year net profit to $13.62 million but said it expects an improvement in the second half.

The improvement will come as new shipping services consolidate in the fourth quarter, chairman John Parker said.

Operating revenue fell $1.2m to of $61.1m.

An unchanged, fully-imputed 7c per share dividend will be paid on March 17.

In the current period Toll Owens Limited was equity accounted as a 50/50 joint venture company and not recorded in the accounts.

Total trade through the port fell 3.5 per cent to 6.33 million tonnes with container volume down 5.2 per cent

Imports were down from the same period last year, with fertiliser and oil products, in particular, lower. Against this, coal imports jumped 29 per cent to 582,200 tonnes. Salt, grain and car imports were also up on the previous period.

Mr Parker said major changes in shipping services, mergers and takeovers in recent months, in particular the merger of Maersk Sealand and P&O Nedlloyd, had created a challenging business environment for the Port.

"However, at this stage it appears there will be a positive outcome for the port from these changes once final negotiations are concluded and the new services come on stream."

Genesis Energy is expected to import an additional 200,000 tonnes of coal a year, which will mean coal volumes in the current year will be ahead of previously expected levels at 1.2 million tonnes.

Exports for the six months were 3,699,300 tonnes, down slightly on the 3,776,300 tonnes recorded in the previous first half.

This reflected the absence of woodchip exports and significant decreases in sawn timber and wood panel shipments.

While the forestry industry continued to experience difficulties, export log volumes at 1.25 million tonnes were 5.2 per cent higher and kiwifruit exports were up 8.4 per cent, Mr Parker said.

Port of Tauranga shares closed yesterday at $4.60 and have traded between $3.90 and $5.70 in the last year.

- NZPA WGT sml ob