Wharf stoush hits port's books

Ports of Auckland said the wharf extension setback resulted in booking costs of $7.3 million. Photo / Brett Phibbs

Annual review shows well-publicised Bledisloe extension setback contributed to 15pc decline in profit.

Ports of Auckland has released its annual review, giving more insight into the stoush over Bledisloe Wharf extensions and its soft profit result.

Short-form results had been released in September, but the port's full annual review - including full audited accounts and reporting on environmental, health and safety and community results - has not been widely distributed.

The company said "technical" issues it hoped to resolve soon were behind the delay in putting the annual review online.

The port has had an unusually high profile this year following public protests about its expansion plans and a report that suggested its owner, Auckland Council, should sell its shares to fund infrastructure spending.

The wharf extension furore resulted in Auckland Council stalling the expansion plans pending a report into the port's future. Acting chairman Rodger Fisher said although financial results were solid and in line with expectations, there was room for improvement in communicating with the public and shareholders .

"We acknowledge our engagement with the wider community can be further improved and we are working to address this,"

The report, to be prepared by a group led by EY, is due to be delivered to council by June.

The port said the wharf extension setback resulted in booking costs of $7.3 million, contributing in part to a 15 per cent decline in profits to $63.2 million for the year to June 30. Other one-off charges affecting profits included $2.4 million in severance payments to staff following settlement with the Maritime Union and $4 million in building and demolition costs related to the new Holcim cement dome.

Chief executive Tony Gibson said the settlement with the Maritime Union had "facilities for a rearrangement of duties which has improved productivity".

Gibson also echoed the words of his chairman and said the Bledisloe Wharf extension saga meant he would be "more focused on directly communicating and listening to all our stakeholders".

"We want to understand their concerns and for them to value the contribution the port makes to their lives, well-being and vibrancy of Auckland."

These one-off costs were eased by the company booking $22.7 million in asset appreciation mostly from revaluing real estate assets. The profit drop was also accompanied by a 1.3 per cent decline in annual revenues to $218 million.

The total paid to directors rose 14 per cent to $460,000, and salaries and benefits for key management personnel rose 26 per cent to $3.25 million.

The accounts show a considerable working capital deficit, with current assets of $30.2 million compared to current liabilities of $101 million. The gap is mostly taken up by $45 million in bank loans becoming due. Total loan levels stood at $213 million, up from $187 million the year prior.

A spokesman for the port said the working capital situation was not a current concern. The accounts note that after the reporting period, on July 29, banking facilities with a consortium of lenders including Westpac, ANZ, CBA and Bank of Tokyo Mitsubishi were renegotiated with new terms of up to five years.