Port of Tauranga posts record 1H profit, lifts FY guidance

Port of Tauranga boosts 1H profit 23%, lifts FY guidance on Chinese demand

By Paul McBeth

Feb. 24 (BusinessDesk) – Port of Tauranga Ltd., the country’s biggest export port, said first-half profit rose 23% to a record and lifted its forecast for the full year as rampant Chinese growth fuels demand for raw materials.

The Tauranga-based company made a record net profit of $28.4 million, or 21.2 cents per share, in the six months ended Dec. 31, up from $23.1 million, or 17.2 cents, a year earlier. Profit beat First NZ Capital’s $28.1 million forecast. Sales rose 38% to $92.8 million, on a lift in railed container volumes between Tauranga and MetroPort Auckland, and greater trans-shipment volumes.

The port boosted its forecast earnings to a range of between $53 million and $56 million, from a previous range of $51 million to $53 million.

“We expect improved confidence to remain in the dairy sector, positively impacting on fertiliser and stock feed supplement imports, and also in log exports, with log volumes being driven by strong demand from China, which is expected to continue,” said chairman John Parker in a statement.

“The company’s strong balance sheet should help protect the company from the slow recovery and volatility in some trade areas, and ensure Port of Tauranga remains New Zealand’s port for the future,” he said.

The company increased its first-half dividend 11% to 10 cents per share, and the stock was unchanged in trading at $7.73.

Port of Tauranga said the Environment Court hearing on its application to widen and deepen the harbour channels to accommodate bigger ships will be held in April.

The company spent about $16 million on infrastructure during the period, improving its cool-store capacity and buying a new pilot boat.

As at Dec. 31, the port had some $210 million in loans and borrowings, of its $260 million revolving facility with a syndicate of lenders made up of Australian & New Zealand Banking Group, Bank of New Zealand and Commonwealth Bank of Australia.

(BusinessDesk)

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