A record profit announcement today by Port Nelson is mainly due to increased cargo volumes, a one-off rates repayment and asset sales, chairman Nick Patterson says.
But a targeted 8 per cent investment return for the port company's 50 per cent shareholders, the Nelson City and Tasman District councils, is still some years away, partly because of planned capital expenditure programmes, he said.
The port company's end-of-year financial results were unveiled today at its annual general meeting.
Mr Patterson said the consolidated profit was up 18.5 per cent on last year at $6.625 million, from revenue of $27.6 million.
The overall result was about 20 per cent ahead of budget, he said.
"We have achieved a net surplus that is a record for the company, giving the two local councils, our shareholders, a return on their investment of 6.76 per cent."
"As we've noted in previous years, the targeted 8 per cent return is still some years off, particularly with the high levels of capital expenditure on port development that we have planned for the next few years."
Port Nelson plans to lodge a resource consent application early next year to extend Main Wharf South by 70m at a cost of almost $9 million.
The controversial project would provide an extra berth but has drawn sharp criticism from some community sectors opposed to potential noise and visual effects.
Mr Patterson said Port Nelson paid the councils an interim dividend of $1 million at the beginning of the year, followed by a $6 million interim dividend in June.
A final $2.3 million payment brought the year's total dividend to $9.3 million, taking the total tally for the past decade to $52 million.
The payments were a considerable financial boost to the councils, he said.
The port also handled record cargo volumes in the last year at just over 2.5 million tonnes. This was driven by strong performances in the fruit, forestry and fishing sectors, along with solid performances in fuel imports and motor vehicles, Mr Patterson said.
Changes in coastal shipping services saw fewer vessel calls, but more cargo transported thanks to larger ships.
"All in all it has been a year of high achievement," he said.
"Port Nelson is well positioned to continue to provide the services that will support the continued growth and development of the Nelson region."
No one from the Nelson Waterfront Protection Association was available today for comment.
- NZPA
Port Nelson reports record profit
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