KEY POINTS:
The Port of Tauranga has reported a record operating profit up 56 per cent to $21.25 million for the six months to December 31.
The result includes abnormal items of $1.8 million relating to land sales associated with the HarbourLink roading project in Tauranga, and termination of a Carter Holt Harvey/Northport joint venture at Marsden Point, near Whangarei.
After adjusting for those abnormal items, the result represents a 43 per cent increase over the previous first half, Port of Tauranga said.
The interim dividend has been increased 14 per cent from 7 to 8 cents per share and was fully imputed.
Chairman John Parker said constructive merger discussions with the Ports of Auckland were continuing, with the board intending to make a final decision by March 31.
The merger would generate substantial public benefits and provide the potential for significant financial and efficiency gains, he said.
It would also ensure New Zealand retained its own port company with world class container terminals in both Auckland and Tauranga into the future.
While directors expected the full-year result to be well ahead of last year, the second half would be adversely affected by the decision, announced in November, of shipping giant Maersk to concentrate its services at the Port of Auckland, Mr Parker said.
Trade through the port was up 9 per cent on the 2006 first half at 6.87 million tonnes, even though log volumes were 7 per cent down at 1.16 million tonnes.
Cargo volumes of note included coal up 8 per cent, oil products up 7 per cent, fertiliser bases up 25 per cent, sawn timber up 27 per cent, and wood pulp up 6 per cent.
Container numbers through the port increased 21 per cent to 254,191 TEUs (twenty foot equivalents).
Mr Parker said continuing efficiency gains at the Port of Tauranga's container terminal contributed significantly to the result, which was also helped by a recovery in bulk trade for associated companies Northport and Toll Owens.
Revenue from ordinary activities was up 20.7 per cent to $73.72m.
- NZPA
