Ports of Auckland posts profit drop

Ports of Auckland today posted a slight fall in June year profit to $42.2 million, excluding unusuals, from $44.3 million a year earlier.

Today's result marked the port's last year as a listed company, with Auckland Regional Holdings (ARH) - the investment arm of Auckland Regional Council - returning the port to public ownership last month.

Including unusuals, the after tax surplus was $38.6 million, compared with $57.2 million in the same year ago period.

The 2004 result included a net gain of $12 million due largely to the sale of the Westhaven and Hobson West Marinas.

Chairman Neville Darrow described the year as "challenging".

Ports of Auckland lost 8 per cent of its container business to Tauranga last year when global shipping giant P&O turned its Asian fleet south, and that figured in today's profit fall.

Total earnings before interest and taxation (ebit), excluding unusuals, were $70.1 million against $71.0 million in 2004.

A standout feature of today's result was a massive increase in property values.

The value of Ports of Auckland's investment properties rose 80 per cent on revaluation to stand at $183.6 million as at June 30.

The value of operational properties increased 64 per cent on the three-yearly revaluation to $582.6 million.

Mr Darrow said the port company had generated superior returns for shareholders during its 12 years on the New Zealand exchange.

Over the 12 years, the compound annual growth rate was 19 per cent. In the past year returns swelled to 25.2 per cent.

Mr Darrow said it was "business as usual" for the port following ARH's move from 80 per cent to full ownership.

"ARH remains a very supportive shareholder and there is every encouragement to operate the ports commercially and to grow in line with an agreed strategic direction," he said.

The port operator will continue to report publicly on an annual and half-year basis.

It remains committed to growing the underlying container and general cargo business, optimising the use of key assets, particularly the valuable container-handling space at the terminals, and optimising the value of investment property assets.

"The company's over-arching objective is to facilitate the development of what is a unique waterfront area which all Aucklanders and New Zealanders can be proud of," chief executive Geoff Vazey said.

Ports of Auckland plans to release the draft concepts for public comment in September.

Looking ahead, Mr Vazey said the complex market and changes in global shipping would continue to keep the port on its toes.

It is currently awaiting a decision from Fonterra about the preferred port for its exports, in which Ports of Auckland is running head-to-head with the Port of Tauranga.

P&O is also about to decide whether to concentrate its European and Asian services at Auckland or Tauranga -- a decision influenced heavily by Fonterra.

- NZPA