Rubicon, the company formed from the rump of the broken-up Fletcher Challenge group, today reported a maiden half year net profit of $30.75 million, consisting entirely of one-off transactions.
It made an operating profit of $308,000 while unusual items amounted to $31.69 million.
Chief executive Luke Moriarty said it was a very strong result for the company's first reporting period, "and one that reflects the successful transactional nature of our first six months of operation".
During the period, Rubicon disposed of its Capstone shareholding for $44 million, sold its Brisbane fuels terminal business for $A19 million ($23.75 million), and sold the Challenge petrol retailing operation for $50 million.
It also completed a $60 million share buy-back programme, reducing the shares on issue by 21 per cent to 279 million, and in so doing increased the net asset backing of the company by 5 per cent.
Rubicon also wrote-down its investments in Fletcher Forests and Genesis Research & Development to the tune of $31.4 million. Its 17.6 per cent stake in Fletcher Forest shares was written down from 31.4 cents to 25.2cps and the 2.8 per cent stake in Genesis shares were revalued down to $2.80 from $3.78.
Commenting on the write-down in the carrying value of its listed securities Mr Moriarty said the companies accounting policies required Rubicon to account for the value of listed investments at market value.
"This ensures that the net asset backing number we publish (an NTA of 97 cents per Rubicon share at September 30) effectively 'marks-to-market' those of our assets that are traded in the public equity markets.
"Having said that, we continue to believe that the true value of our Fletcher Challenge Forests shareholding is well in excess of 25 cents per share - the market price on September 30."
Rubicon earned income of $600,000 from its treestock development and sales activities at its Trees and Technology operation in Te Teko, less net corporate expenses of half of that.
Earnings from associates were a loss of $1.2 million, reflecting the impact that an extremely difficult, and deteriorating, Argentine economy was having on the company's eucalyptus forestry and processing activities in South America.
- NZPA
AdvertisementAdvertise with NZME.
Latest from Business
'Corporate welfare': Taxpayers' Union in stoush with tech lobby group over funding
With millions in funding about to expire, group pushes for meeting with Judith Collins.