KEY POINTS:
Container volumes are up but profits are down at Ports of Auckland, the largest port in the country and growth engine of the Auckland economy.
Net profit after tax fell to $61.1 million in the year to June 30 from $93.8m last year. This was mostly due to the running of property revaluations through the profit statement under new international accounting rules. Property revaluations boosted the restated 2006 profit by $55.9m and 2007 profit by $26.7m.
This will be less of an issue in the future as property assets have been separated from the port operating company.
Earnings before interest and tax (EBIT) fell to $52.2m from $62.3m last year. This year's EBIT included $7m of one-time items, implying the underlying profit picture was basically flat.
Volume was a different story. The port handled the equivalent of 773,160 standard-sized containers in the year, 12.6 per cent more than last year, and had a record cruise ship season.
The port handles 50 per cent of the North Island's container trade, and 37 per cent of New Zealand's total container trade.
It has had a year of unprecedented change after shipping line Maersk, Fonterra's major seafreight carrier, chose Auckland as a hub.
The port also has a new chief executive, has invested $150m in new cranes and equipment and looked hard at a merger with Port of Tauranga before shelving the idea.
The port is wholly owned by Auckland Regional Holdings, the commercial arm of Auckland Regional Council, which was paid a $19.9m dividend in the year.
Critics say privately that the Ports of Auckland has a weak board and management and it has dropped its charges too far to gain new business, all of which is denied by past and present management.
There were no margin figures in the press statement but a full set of accounts will be put on the website in about ten days time.
"We remain strongly focused on the development of world class, cost-effective solutions for international shipping lines, importers and exporters," Ports of Auckland managing director Jens Madsen said.
During the year the deepening of the harbour channel was completed, three new post-panamax twin-lifting container cranes were installed, 17 new straddle carriers were commissioned, with a further ten on order, and stage one of the Axis Fergusson container terminal reclamation extension was nearly completed.
The volume of break-bulk, or non-containerised cargo, fell 7 per cent to 4.2 million tonnes, partly due to reduced car imports.
A total of 1771 ship called, up from 1739 last year.
The port had a record cruise ship season last year with 46 ships calling. That record will not stand for long as 73 calls are booked in the season that began on September 24.
Interest costs were higher because debt levels increased due to the capital investment and a special dividend paid in December 2005.
Looking to the year ahead, Mr Madsen said productivity measures will further improve and the company was expecting further gains as it built on the strong, established platform for growth.
- NZPA
