Port sets record despite log slips

New Zealand's busiest export port, the Port of Tauranga, has announced a record net profit of $22.4 million in the year to June, up 14 per cent on the previous year.

Chairman Fraser McKenzie said the result set a benchmark for the port and demonstrated that its business diversification strategy was working well for shareholders and customers.

"The port has lifted its profit in a year when the log trade - traditionally a major contributor to overall revenue - was in decline," Mr McKenzie told the Stock Exchange.

"Despite this contraction in one major commodity, the port's trade volumes have for the first time exceeded 10 million tonnes."

Container traffic also increased by 22 per cent on the previous year's record volume. Revenue increased to $76.7 million, up from $69.9 million in the previous year.

The company's operating profit before tax and unusual items was $31.16 million, up from $28.8 million a year earlier.

Mr McKenzie noted the port's recent performance has attracted the attention of international commentators. Containerport magazine, a respected London-based trade publication, had named the Port of Tauranga as the fastest growing container port in the world for the year 1999/2000.

"Had the port confined itself to the narrow role of operating as a provincial port, the tale would have been different," he said.

Dairy products particularly helped fuel the company's good result. Tauranga was now the country's biggest dairy export port. Dairy exports increased by more than 25 per cent to 692,400 tonnes.

A new 7000sq m dairy shed, due to open next Thursday, will boost the port's ability to handle dairy cargo by 30 per cent.

Earnings per share rose from 25.7c in 2000 to 29.3c, and the share price reached a record level of $6.80 by the end of June ($5 previously).

Shareholders will receive a total dividend of 24cps, including a fully imputed final dividend of 15cps, up from 22c last year.

Returns on shareholders' funds climbed from 7.5 per cent in 2000 to 8.4 per cent this year. The Port of Tauranga announced on August 7 that it planned to return surplus capital of $67 million to shareholders.

The plan involves cancelling one in every eight shares held, and is subject to approval from the High Court and confirmation from Inland Revenue that the payout will be tax-free.

- NZPA