KEY POINTS:
A drop in vehicle imports for Ports of Auckland has resulted in lower revenues and profit for the port for its interim half year.
Net profit after tax was $10.6 million, compared with $22.3m in the previous December half.
The company handled a record 356,355 TEU (standard 20ft containers), up 1 per cent.
But breakbulk or non-containerised, cargoes were down 10 per cent to 226,208 tonnes, largely due to fewer vehicle imports.
Total revenue fell 5.4 per cent to $82.7 million and earnings before interest and tax was down 27.7 per cent or $10m to $27m.
The port said its bottom line was also affected by higher interest costs, up $6.5m, largely due to an earlier restructuring the balance sheet and paying a special $120m dividend in December 2005.
Other factors included costs associated with evaluating a merger with the Port of Tauranga, and analysing options for a waterfront rugby stadium.
Usuals amounted to $5m over the half year.
Chairman Gary Judd said the recent six months were part of a period of "considerable change" for the company as it geared up for growth, explored a merger and agreed to divest land as part of Auckland's waterfront redevelopment.
Ports of Auckland was close to finishing the first phase of a $60m expansion of its Fergusson container terminal, which would to help meet the increase in volume since Maersk made it its key North Island port.
Mr Judd said the port was currently enjoying better profits, which would "tend to make up for this year's reduced half".
It was expected to have a "significantly better" second half than in 2006, but full year profit would inevitably be lower than the previous full year, due to the interim result and the balance sheet restructure.
"In the following year, as the increased volumes are fully realised, revenues and profit will continue to improve."
The port made a full year net profit to June 2006 of $35.5 million, after tax.
- NZPA
