Ports of Auckland flagged a likely weak result in the second half of the financial year after losing contracts because of its industrial dispute, following on from a flat first-half underlying profit, declared today.
The port made a net profit of $18.6 million in the six months ended December 31, though $4.8 million of that was a tax gain that is unlikely to recur, the company said. Stripping out that gain, underlying profit was $13.8 million, down from a $14 million normalised profit a year earlier.
The port boosted revenue 9 per cent to $96.6 million in the period, though operating costs climbed 12 per cent. The board declared an interim dividend of $9.8 million, paid on February 29, down from $10.4 million a year earlier.
"Second half results will be impacted by decreased container volume associated with recent industrial action and loss of the Maersk and Fonterra services," chief executive Tony Gibson said in a statement. "It's been a challenging period for the business."
The port has been embroiled with a protracted dispute with the Maritime Union over its plan to introduce flexible shifts as a means to rein in its wage bill. That's caused rolling strikes and lock-outs, and the parties have gone back to the bargaining table after Employment Court Judge Barry Travis granted an injunction and the port management drew back from hiring external stevedoring contractors.
