By PAM GRAHAM
Port of Tauranga has increased its dividend to shareholders, who doubted it could make up for an 18 per cent fall in log exports.
The nation's biggest export port yesterday reported a $14.74 million profit in the six months to December 31, up 1.5 per cent on last year,
and increased its interim dividend to 7c a share from 6c.
"I'm really pleased we've managed to turn in the result that we have despite the downturn in forestry," said chief executive Jon Mayson.
"I would like to think that our shareholders and all stakeholders will be pleased with the results."
The share price was unchanged yesterday at $4.50, up around 50c from late last year but off the 52-week high of $4.65.
The port's shares fell late last year as investors bet lower log exports would not be made up by new business and amid speculation the port would lose an Asian shipping service to Auckland.
Tauranga won the "shoot-out" with Ports of Auckland for P&O Nedlloyd's Asian service and that kicks in for the second half.
The port is feeling the downdraught from a forestry sector battling against the high dollar and steep rises in freight rates. Carter Holt Harvey, the country's largest forest owner, has cut its harvest.
In the half year just gone, log exports through the port were down 18 per cent but dairy, meat, kiwifruit and general cargo exports rose.
Imports rose 44.6 per cent, boosted by 295,137 tonnes of coal imported by Genesis Power for its Huntly station.
Container traffic rose 9.3 per cent with the help of a decision last year by shipping line Mediterranean Shipping Service to use the port for a direct European service.
Mayson said the forestry downturn affected Port of Tauranga's 50 per cent investment in NorthPort and Owens Cargo Company, a log-handling business owned by the port which operates in 10 ports.
He was reasonably confident the port could hold its position in the second half.
Accounting rules stopped the port recognising $578,000 of earnings from NorthPort. NorthPort got cash for servicing logs that have not yet moved and accounting rules prevent earnings recognition until the service is carried out.
The port is buying a fourth container crane and upgrading its existing three cranes. Two new straddle carriers arrive in April.
By PAM GRAHAM
Port of Tauranga has increased its dividend to shareholders, who doubted it could make up for an 18 per cent fall in log exports.
The nation's biggest export port yesterday reported a $14.74 million profit in the six months to December 31, up 1.5 per cent on last year,
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