Port of Tauranga profit rise reflects outside investment

By PAM GRAHAM

Port of Tauranga posted an 18 per cent rise in first-half profit yesterday on revenue bolstered by investments outside the port, where container volumes were relatively flat.

Profit after tax in the six months to December 31 rose to $14.53 million from $12.3 million last year on a 38 per cent rise in revenue that included a full contribution from Owens Services BOP, which handles forest products at 10 ports, for the first time.

The Bay of Plenty port, which has a site in South Auckland, a half share in Northland's Northport and an alliance with Port of Marlborough, said it was focused on maintaining momentum in the second half, but economic conditions might slow in the short term. It made a record $25.1 million full-year after-tax profit last year.

In the first half, total imports and exports through the port rose 4.5 per cent to 6.09 million tonnes, comprising a 5.9 per cent rise in exports and a 0.8 per cent rise in imports. The port handled the equivalent of 169,741 standard 20-foot (6m) containers, up 4.7 per cent from last year and compared to 629,899 at Ports of Auckland in the year to January.

The company announced a 6c a share interim dividend, or 55 per cent of its tax-paid profit. For the same period last year it paid 11c a share before a two-for-one share split.

The company said it would try to lock in low borrowing costs while interest rates were at five-year lows. It expected increased volumes from a decision by shipping company MSC to use the port and it was looking for new investments.

"We can see some opportunities out there. We are not in any way in a standstill mode. We believe we can continue to grow the company," said chief executive Jon Mayson.

Mayson said MSC's current volumes were quite encouraging but analysis had not been done to see whether it was bringing new business to the port.