Lyttelton Port sees $700k cut to earnings from Solid Energy

Lyttelton Port sees $700,000 loss of annual earnings from Solid Energy cuts

Oct. 2 (BusinessDesk) - Lyttelton Port Co, the South Island’s biggest port operator, said state-owned Solid Energy’s decision to wind down some coal activity will erode annual earnings by $700,000.

“Solid Energy has announced a number of strategic and structural change proposals in response to the impact of the challenging global coal market on its business,” the company said.

Lyttelton, which is 79.3 percent owned by Christchurch City Council’s holding company, is now forecasting a 17 percent drop in coal volumes in the year ending June 30, 2013, from the record 2.4 million tonnes exported through the port last year. That will wipe $700,000 off after-tax earnings.

The port said it will provide a full forecast at its annual meeting on Nov. 2.

The shares were unchanged at $2.15 in trading today, and have gained 7.5 percent this year.

(BusinessDesk)

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