Port lifts volume but profit takes dip

By CHRIS DANIELS

Profits are down, but Ports of Auckland is enjoying robust growth in revenue and even more containers crossing the wharf.

In six-month results to the end of December, the company reported a drop in after-tax profits of 10 per cent on the same period last year, at $20.4 million, down from $22.7 million.

This, says the company, is almost entirely due to the extra interest costs incurred by the company from borrowing money needed for last year's capital return to shareholders.

"The return on shareholders' funds improved in line with the more appropriately structured balance sheet and the company is now using capital more effectively," said chairman Neville Darrow.

One share in five was cancelled last year, returning $132 million to shareholders.

For the past six months, earnings per share had increased to 19.2c, a 2c increase on the first half of last year.

The port company is again paying a dividend of 75 per cent of after-tax profits, which means 15c a share, fully imputed, payable on March 21.

Revenue was up 6.5 per cent for the past six months, earned from an 11 per cent increase in the number of containers handled. Ship calls were down 3 per cent for the six months, owing to the introduction of new, larger ships.

Chief executive Geoff Vazey said the strong Auckland economy meant more imports coming into the country, with a 12 per cent increase in imported containers coming through the port. Transshipment, where containers are unloaded at Auckland, then shipped to another port, increased 12 per cent.

Darrow said the downgrading of Ports of Auckland shares in its new NZSE-50 index (because 80 per cent of its shares are owned by Infrastructure Auckland) had led to the share price "drifting" last year.

This now appeared to be over, and he did not expect the new, lower rating on the index to "be an ongoing drag on the share price".

Vazey said container volumes were "on track for another solid full-year performance".

Shares in Ports of Auckland finished the day at $6.45, a drop of 9c.