Profit down for Northport owner Marsden Maritime Holdings

Marsden Maritime Holdings, which owns Northport, at Marsden Pt, above, has seen its profits fall for the last six months of 2018.

The company that owns Northport, the deepwater port at Marsden Pt, has seen a drop in profits for the last six months of last year, with the fall largely due to lower bulk cargo movements.

Marsden Maritime Holdings (MMH) announced yesterday that it recorded a net surplus of $4.444 million for the interim six-month reporting period to December 31, 2018, a 16.1 per cent fall on the $5.297 million surplus for the six months to the end of 2017.

The company said the reduction was primarily as a result of lower bulk cargo through Northport.

Overall cargo throughput at Northport Ltd was down 11 per cent to 1.699 million tonnes (2018 - 1.908 million tonnes) with log volumes decreasing by 9.8 per cent.

MMH chief executive Felix Richter said while Northport cargo volumes were down in the first six months of this financial year, volumes for the second six months are forecast to improve.

"The parent company has continued its growth in revenue from other activities, and these are expected to improve, with the operating surplus for the full year still anticipated to be a positive improvement on last year", MMH Chairman Sir John Goulter said.

In respect of property development prospects, the company has just reached an unconditional agreement to build and lease to a multinational client two substantial bulk storage warehouses on its land at Marsden Pt, adjacent to Northport.

Preliminary work on the project has already started and the first warehouse is expected to be occupied from July 1. The second warehouse is scheduled to be completed and ready for occupation from mid-September.

The total budget for the project is around $8 million. Also a block of four commercial units is under construction with completion due in April.

"There remains considerable scope for further developments of this nature", Richter said. He said this would benefit the Northland economy.

A fully imputed dividend of 6.75 cents per share (2017/18 – 6.75 cents per share) has been declared with payment to be made on March 22.