Tauranga posts profit rise on dairy/log exports
August 27th, 2009
Port of Tauranga, NZ’s largest export port, has boosted its annual profit for 2008/09 to $45.2m, up 7.3% on last year despite a 3.5% fall in revenue. The good result will strengthen its position with rival Ports of Auckland in its battle for national port supremacy. Net profit for the year ending June was up more than $3m on 2008′s result, although total operating revenue fell 3.5% to $143.6m as the amount of cargo coming through the port dropped. Container throughput was down 4% to 546,521 TEUs while total trade fell to 13.5 m tonnes, although the company has noted a “substantial increase” in dairy and log exports.
John Parker describes the result as “very pleasing” considering operating circumstances for the year. “The financial market collapse caused a commodity boom to turn to bust and for Port of Tauranga, meant considerable change to trading patterns with overcapacity, especially in container shipping.”
Parker says the port’s strong balance sheet, operating efficiency and diverse cargoes leaves it well-placed to ride out the uncertain short term and participate strongly in any export-led recovery. With $33.5m paid out in dividends and investment of $38.5m in capital expenditure, the company now has a gearing of 29.4%. He adds its bank facilities had been negotiated at “very favourable rates” prior to the current credit crisis and running through to December 2010, while discussions have begun with its bankers over new debt facilities with effect from 30 June 2010.
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