Centreport Posts Strong Half Year Result

Centreport Posts Strong Half Year Result

CentrePort has achieved net underlying profit after tax (before earthquake provisions and Fair Value Adjustments) of $8.8 million for the six months to December 2016.

After earthquake provisions and Fair Value Adjustments to property, the result is a loss of $35.7 million, with Port land also written down by $50 million in value. The results also include insurance income received to date, and discussions with insurers are ongoing.

CentrePort’s revenue had been tracking strongly ahead of the 14 November 2016 earthquake. Despite the disruption, the Port’s revenue for the six months to December 2016 was steady at $34.4 million, compared to $35.5 million for the six months to December 2015.

This positive result was possible because of hard work to resume operations immediately after the earthquake. Within 48 hours the Port resumed key operations including ferries, fuel, logs, and break bulk trade.

Chairman Lachie Johnstone said the Board was encouraged by the results, given the significant damage caused by the earthquake just after midnight on Monday 14th November 2016.

“CentrePort is well insured and is continuing discussions with insurers regarding earthquake-related claims. These results show the company’s underlying performance is strong.”

Chief executive Derek Nind says the management team is making good progress on the recovery, and plans to build resilience into the business.

“We were recently pleased to announce the resumption of regular container services at CentrePort using geared ships, with more services expected soon. Meanwhile, temporary repairs are well underway that should allow us to resume modified operations using our gantry cranes within four to six months.

“We are in the midst of one of our busiest cruise seasons, and are seeing strong volumes of other key trades such as cars and logs.

“As we look beyond our recovery works, we’re exploring how to build resilience into the Port. We’d like to thank our customers for their continued support, and look forward to working with them on future initiatives to ensure the business reaches its full potential as an infrastructure asset for central New Zealand.”

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