Port of Tauranga Ltd - results for the year to 30 June 2008
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Port of Tauranga Limited (NS) (POT) | 10:10 am, Thursday 28 August 2008 | POT | 6.500 |
 -0.020 |
(-0.31%) |
Port of Tauranga has announced a net profit of $42.117 million for the year
ended 30 June 2008 - an increase of $2.782 million on last year.
Chairman John Parker said, "In the face of considerable turmoil in the global
environment, this is another solid result, reflecting the long-term stability
of the Company in a volatile economy."
Chairman Parker commented that, together with total operating revenue being
up 14.8%, the increase in container throughput by 25% to 582,072 TEUs was
particularly gratifying.
Directors have declared a fully imputed final dividend of 16 cents per share,
after an interim payment of 9 cents per share - a 13.6% increase over the
2007 dividend. "We are pleased that trade growth has again flowed through
into earnings growth, allowing us to deliver on our policy of increasing
dividend distributions."
Chairman Parker said the Company's balance sheet remained strong, with a
debt/debt plus equity ratio of 28.6% after payment of $44.231 million in
dividends and investment of $34.452 million in capital expenditure. Prior to
the current credit crisis, the Company extended its bank facilities until
December 2010 at extremely favourable rates, compared with rates that could
be obtained today. "In the current climate, we are very pleased to retain a
conservative balance sheet," he said.
"This result represents another record year," said Chief Executive Mark
Cairns. "In the increasingly challenging economic climate, that should be
seen as a clear demonstration of the Company's resilience.
"Port of Tauranga continues to lead the New Zealand market in terms of trade
volume, efficiency and profitability. Latest Statistics New Zealand data
shows the Port of Tauranga handles 52% more international cargo than our
nearest competitor, and 241% more export cargo."
Cairns said that total trade for the year was up 7% at 13.525 million tonnes
- an increase of 877,125 tonnes. Log exports increased by 5%, timber by 14%,
and paper products by 9%. The lift in forestry exports was encouraging, he
said, as was the increasing trend to exporting logs in containers.
Noteworthy trade variances included a 25% increase in kiwifruit exports,
while steel was up 14% and palm kernel and grain by 94%. Dairy exports
decreased by 40%, while imported coal and fertiliser base were down 58% and
7% respectively.
"Public concern and interest often focuses on the wins and losses of
significant contracts," said Cairns "but this interest sometimes generates
more heat than light, over-dramatising the importance of the natural ebb and
flow of cargoes. The longer term view, from a greater height, shows a picture
of the Company's extremely healthy and competitive position. Container
volumes have grown more than a compounding average of 10% a year since 1998 -
including a 25% growth in the year under review."
Cairns noted that the 33% increase in containers transhipped through the port
during the year was an indication of the growing trend to hubbing in the New
Zealand shipping industry.
Turning to the topic of MetroPort - New Zealand's first inland port and now
an established part of the national supply chain and road transport system -
he reported a further growth of 23% had been realised. "The 170,000 TEUs now
being railed through the greater Auckland region have facilitated the 620%
growth in container volumes through the port in the last 10 years."
The Company acquired the 7.7 hectare Norske Skog property at the beginning of
the period, later adding a further 1.6 hectare block of land at 216 Totara
Street, Mount Maunganui. Both adjoin existing port land and bring total
strategic land holdings to 178 hectares - 72 hectares for the container
terminal. "This further future-proofs our capacity to provide for continued
growth in both bulk and containerised cargoes without the need for costly
reclamation or expensive high stacking gantry systems," said Cairns.
In July 2009, the Company will commission a fifth Liebherr ship-to-shore
gantry crane to cater for growth within the container terminal. The crane
(larger than the existing post-panamax cranes) will be capable of handling
vessels in the 5,000 to 7,000 TEU range (or up to 18 containers wide).
Servicing the larger vessels requires further dredging of the shipping
channels to provide for 14.5 metres of draught at all tides, and the Company
is seeking resource consents to ensure that dredging can be initiated
expeditiously when required by market demand.
Next financial year will see the Russian Government increase its excise taxes
on their softwood log exports from 20% to 80%, which should provide
opportunities for New Zealand log exporters, and will be assisted further
with the weakening NZ dollar. Log exports for the last quarter support an
expectation of double digit growth over the next financial year.
Chairman John Parker said, "The positive factors underpinning the long-term
future of the Company - land and physical expansion options at minimal cost,
best in class cargo-handling efficiency, and strong business fundamentals -
allow us to remain confident of maintaining earnings growth momentum in the
face of the global economic concern. This view is reinforced with early trade
figures for July and August."
Ports of Auckland announced an interest in purchasing Port of Tauranga's
container business in a press release accompanying their annual result last
week. We have not yet seen a proposal from Ports of Auckland and until we
do, we are unable to comment, other than to say we are struggling to see how
an offer would be value accretive to our shareholders in view of our strong
result announced today, including a further 25% growth in containers over the
last financial year. Nonetheless, Port of Tauranga has always held the view
that a full merger between Port of Tauranga and Ports of Auckland makes good
sense. That view has not changed.
For further information:
John Parker
Chairman
Port of Tauranga Limited
Telephone 06 364 2322
0274 421 854
Mark Cairns
Chief Executive
Port of Tauranga Limited
Telephone 07 572 8829
021 978 887
http://www.port-tauranga.co.nz
Results for announcement to the market
Reporting Period 12 months to 30 June 2008
Previous Reporting Period 6 months to 31 December 2007
Amount (000s) Percentage change
Revenue from ordinary activities NZ$148,808 14.8%
Profit (loss) from ordinary activities after tax attributable to security
holder. NZ$42,117 7.1%
Net profit (loss) attributable to security holders. NZ$42,117 7.1%
Final Dividend Amount per security Imputed amount per security
NZ$0.16 $0.07880597
Special Dividend
Record Date 19 September 2008
Dividend Payment Date 3 October 2008
Comments: The 2007 results were restated due to the transition to NZ
IFRS.
