Ports of Auckland reports $22.75m profit and lifts dividend

1.00 pm

Ports of Auckland today reported it had lifted its December half-year net profit by 9 per cent to $22.75 million.

The company substantially lifted its half-year dividend to 12.5 cents from 9 cents, which it has paid for the past five years. The dividend was fully imputed.

"The increased interim dividend reflects the new dividend policy that, subject to the cash requirements of the company, ordinary dividends now will represent 75 per cent of after-tax profits," chairman Neville Darrow said.

"We are placing greater emphasis on ordinary dividends in recognition that many of our smaller shareholders invest in Ports of Auckland as a utility stock that produces regular and steady returns with reasonable certainty."

Operating profit before tax rose to $34.1 million from $31.3 million.

Earnings before interest and tax (ebit) rose 9 per cent to $35.2 million. Operating revenue was up 3 per cent to $77.2 million, compared to the 2000-2001 half year.

The company said its port activities performed particularly well. Ebit for port operations rose 10 per cent to $30.6 million while operating revenue for port operations rose 1 per cent to $69.9 million. Operating costs continued to fall, with a drop of 2 per cent to $40.3 million.

"This is a very pleasing half-year result that has set us up well for the full year. Our core container-handling business continues to show steady growth, with productivity improvements and tight control on costs," Mr Darrow said.

The company said container volumes, which contribute 70 per cent of total revenue, had risen 6 per cent.

Chief executive Geoff Vazey said transhipment container volumes rose 41 per cent. Transhipments now make up a significant part of Ports of Auckland container volumes.

Breakbulk (non-containerised cargo) volumes rose 11 per cent to 2.3 million tonnes, boosted by an unusually large increase in vehicle imports with high demand to bring in used cars before new legislation restricting older models comes into effect in April.

Breakbulk had been trending downwards partly because of the increasing containerisation of some dry bulk cargoes.

Total vehicle imports climbed 15 per cent to 80,000, compared with the first half last year.

The import/export balance for containers remained at 57:43.

The company also announced today it had established its first "inland port" at Fisher & Paykel's East Tamaki site. Fisher & Paykel are the foundation client and other major local importers and exporters are expected to use the inland port facility.

Ports of Auckland is fighting competition from other port companies setting up inland ports in the Auckland region such as Ports of Tauranga.

Import containers will be cleared through customs and the Ministry of Agriculture and Forestry at the port and brought to the East Tamaki site for delivery to customers,.

Ports of Auckland shares were steady on $5.48 shortly after the result.

- NZPA