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Profit is down at Lyttelton Port in the face of bad weather, spending on maintenance and high fuel costs but the company expects the storm to clear for an improved second half.
Net profit for the six months ending December 31 was $3.9 million, down from $4.8 million, while trading profit (earnings before interest, tax, depreciation and amortisation) fell from $13.5 million to $12.3 million.
The drop in trading profit was attributed to increased spending on harbour structure assets, mobilising a third container crane, additional dredging because of extreme winter weather and high fuel prices earlier in the year.
Chairman Barney Sundstrum said that despite flat economic conditions a substantial investment had been made in the company's future.
"In the past we have spent just $900,000 per year on the maintenance of our wharves," Sundstrum said.
"As announced at the outset of the year, we have put in place a rigorous two-year expenditure programme of $3.4 million per annum to expedite the restoration of our strategic assets."
Container numbers were up 5 per cent at 107,800 and coal exports grew 2 per cent to 1.2 million tonnes, although bulk fuel was down 10 per cent at 516,000 tonnes and ship visits fell 8 per cent to 576.
Revenue of $37.1 million was down from $37.9 million, although up 1 per cent when accounting for the sale of the transport and international divisions of CityDepot the previous year.
An interim dividend of 1.3c was declared.
The full-year net profit forecast remained about $8 million, the company said.
Shares in Lyttelton - which is understood to have talked with Port Otago about merging into a South Island super-port - closed down 1c yesterday at $2.25.
Chief executive Peter Davie said he was confident volumes would improve during the rest of the year.
"Our forecasts are good for the second half of the year," Davie said.
"The late start to summer has held off the harvest and we expect to see an influx of primary produce exports later in the season."
The construction of the third crane came in ahead of schedule and under budget, Davie said.
"The new crane is a significant investment for our future," he said.
