The first installment of the capital return is by way of a fully imputed special dividend of $34m, or 25 cents a share.
Port of Tauranga posted a 2.3 per cent decline in full-year profit, missing some estimates, while announcing plans to return $140 million to shareholders over four years and a five-for-one share split to boost liquidity.
Profit fell to $77.3m, or 56.8 cents a share, in the 12 months ended June
30, from $79.1m, or 58.2 cents, a year earlier, the Tauranga-based company said in a statement. Operating revenue fell to $245.5m from $268m, which it said partly reflected having to equity account Tapper Transport as an associate company within its Coda partnership.
The port company has been reviewing its capital needs because its five-year, $350m capital expenditure programme, which has included dredging its shipping lanes to accommodate larger ships as soon as October this year, adding cranes, straddle carriers and tugs, expanding its wharf and marshalling areas, and buying property, comes to an end in 2017. The first installment of the capital return is by way of a fully imputed special dividend of $34m, or 25 cents a share, and the share split has a record date of October 17.
"Port of Tauranga is in a sound financial position with strong prospects," said chairman David Pilkington. "We are looking ahead to the future with confidence."
The company will retain a strong balance sheet after the capital return while returning excess capital in a tax-effective manner, he said. "A return of the full $140m to shareholders would still ensure the company retains a conservatively geared balance sheet and an investment grade credit rating."
