Port of Tauranga today reported flat earnings in the first quarter of the financial year, as Covid-19 continues to impact supply chain efficiency and the global economy.
From July 1 to September 30 this year, the Port of Tauranga handled nearly 6.4 million tonnes of cargo, a 5 per cent decrease on the same period last year.
Containerised cargo decreased by 8 per cent to 287,670 TEUs (twenty-foot equivalent units). Imports were the same as the first quarter last year, and exports were down 8 per cent.
Log exports were performing in line with forecasts of 6.2m tonnes for the full year but remain vulnerable to variable international demand.
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Dairy product exports decreased by about 12 per cent compared with the same period last year, which the port believed was due to seasonal variations. Kiwifruit exports increased by 9 per cent for the quarter.
Port of Tauranga chief executive Mark Cairns today told the company's annual meeting of shareholders that the unaudited Group Net Profit After Tax for the first quarter was $21.5m, compared with $21.7m in the previous corresponding period.
"Based on the first quarter's performance, and notwithstanding any significant market changes, we expect full-year earnings to be between $86m and $93m."
Cairns said the Port of Tauranga was still planning for long-term cargo growth.
"Port of Tauranga is a long-run infrastructure company and we will continue to pursue capacity expansion and greater efficiencies, to avoid the bottlenecks and congestion currently being experienced in the Upper North Island supply chain," he said.
"We have a demonstrable track record and a very strong A- credit rating renewed last month by Standard & Poors. ''
"We believe we are well placed to weather whatever the Covid-19 storm throws at us next."