Port performs but still likely to get the flick

Lyttelton Port's "encouraging" half-year result yesterday is unlikely to alter the prospects of Christchurch City Holdings' plans for a full takeover and quick flick of half the company to international port operator Hutchison Port Holdings.

Although Lyttelton Port's interim net profit of $4.5 million was down 8 per cent on last year after a revaluation of assets and consequent higher depreciation costs, total revenue of $37.9 million was up 18.8 per cent and operating earnings rose 14.8 per cent to $13.2 million, which the company described as encouraging.

Operating costs were up 17.9 per cent due to solid volume growth and increased labour costs resulting from the settlement of a collective agreement last year.

Hamilton, Hindin, Greene broker Grant Williamson said with the increases in revenue and operating earnings, it was a "reasonable" result.

CCHL - the investment arm of the Christchurch City Council and 69 per cent port owner- earlier this month disclosed plans for a $2.10-a-share bid for 90 per cent of the company in order to trigger compulsory acquisition of the remainder.

Should it succeed, it plans to delist the company, sell 49.9 per cent to Hutchison and form a more competitive partnership with the global port operator, which runs 41 ports in 20 countries.

CCHL is expected to make its offer early next month.

Lyttelton shares closed unchanged at $2.17 yesterday.