Ports of Auckland profit falls

Ports of Auckland (POA), which delisted last year, today reported its June year net profit fell 8 per cent to $35.5 million.

POA, now wholly owned by Auckland Regional Council's infrastructure holding company, Auckland Regional Holdings, said the company was hit by global shipping mergers that affected shipping line services and calling patterns.

The world's biggest container line, Denmark's Maersk, ended up with 40 per cent of the New Zealand market when it took over rival P&O Nedlloyd in December, is mulling trimming its ports of call here from five to three.

There were suggestions Maersk was tossing up between ditching either POA or Port of Tauranga.

POA said the new financial year had started well with full container volumes continuing to be strong.

Export full containers were consistently growing faster than import fulls which was very good for the New Zealand economy, it said.

"Volumes flowing through the port suggest the New Zealand economy is in better heart than is generally being reported," chief executive Geoff Vazey said.

Higher costs, in particular fuel, electricity and one-off infrastructure repairs, also adversely the 2006 result.

Mr Vazey said POA experienced satisfactory growth with total annual container volumes increasing 6.5 per cent.

The company bought three new cranes and 11 new straddle carriers during the period, completed the first half of its nine-hectare Fergusson container terminal extension and opened the Wiri Inland Port.

Earnings before interest and taxation (Ebit), excluding unusuals, were $68.6m against $70.1m for 2005. Interest charges were up 98 per cent to $15.2m, mainly due to a balance sheet restructure during the year as a result of the company buying out the 20 per cent minority public holding.

Ebit for the port operations rose to $59.8m from $58.9m.

Full import and full export container volumes rose 6.9 per cent and 11.4 per cent respectively as a result of both market share gains and underlying economic growth.

POA increased primary export volumes of dairy and forestry (excluding logs and chip) by 40 per cent and 25 per cent respectively.

Total breakbulk (non-containerised) volumes for the year fell 8 per cent largely due to the decline in imported used cars.

- NZPA