Highlights
o Underlying profit increased by 13.4% to $39.193 million for the six months
to December 2012.
o Excellent results from Group subsidiary and associate companies.
o Export volumes increase by 16.6%, with strong growth in forestry and dairy
products.
o Container volumes increased 25.5% to 431,840 TEUs.
o Tauranga Container Terminal expansion nears completion, with a sixth
container gantry crane to be commissioned in March 2013.
o High Court dismissing appeals against our dredging resource consent
application
Port of Tauranga today announced another record half year profit as it grew
container traffic and bulk freight volumes, consolidating its position as the
pre-eminent national freight gateway.
Net Profit After Tax increased to $74.2 million from $34.6 million. This
included a net gain of $35.0 million on the sale of our 50% share in C3
Limited in November 2012.
The Board considers that using underlying profit gives readers a better
comparison of normal operations and therefore has excluded the net gain from
C3 in determining underlying profit. A reconciliation between reported and
underlying profit is attached.
Underlying half year profit (which excludes the gain on sale of C3 Limited)
rose by 13.4% to $39.2 million - up from $34.6 million, for the six months
ended December 2012.
Revenue increased to $118.6 million from $105.7 million for the six months -
an increase of 12.2% on the previous corresponding period.
Port of Tauranga Chairman, John Parker, said: "Port of Tauranga''s staff and
service providers have continued to deliver the reliability and productivity
levels for which the Company is well recognised."
The Board has declared an increased interim dividend of 20 cents per share
fully imputed - up 66% from the 12 cents per share for the 2012 interim
dividend. The Board has decided to modify the dividend policy to increase
the proportion of dividends paid as interim to approximately 45% of the
annual dividend. The record date for entitlement to the interim dividend is 8
March 2013 and it will be paid on 22 March 2013.
Port of Tauranga''s capital position remains strong. Gearing is conservative,
with liabilities to total assets at 26.6%, from 29.9% at the same time last
year.
Trade volumes increased 10% to 9.4 million tonnes from 8.5 million tonnes
over the same period last year. Total exports increased 16.0% to 6.4 million
tonnes from 5.5 million tonnes in the previous period. Dairy volumes
represented the largest increase - up 87% to 935,000 tonnes. Meat exports
increased 31% to 184,000 tonnes. Log volumes rose 13.8% to 2.649 million
tonnes. Import volumes remained steady at just under three million tonnes.
These volumes were underpinned by a significant increase in the number of
services calling at the port. In the last year, we secured seven new shipping
services.
Port of Tauranga Chief Executive, Mark Cairns, said: "The results for the six
months show the Port of Tauranga continuing to consolidate and strengthen its
position as the pre-eminent national freight gateway and we expect container
growth to continue as we further expand capacity."
Containers handled increased by 25.5% to 431,840 TEUs (twenty foot equivalent
units) at the end of the current period, from 344,081 TEUs in the six months
to 31 December 2011.
MetroPort, our inland port in the heart of Auckland''s industrial belt, played
a pivotal role in driving this growth. Traffic through its gates increased by
25.6% to 101,440 TEUs, from 80,746 TEUs in the same period last year.
Port of Tauranga''s container volumes have continued to grow at a greater rate
than other New Zealand ports. Trans-shipped cargo volumes (cargo shipped
across Port of Tauranga wharves before being shipped on to another port) grew
by 48% to 93,008 TEUs, underscoring our position as New Zealand''s hub port.
Investment
In order to retain the Port''s competitive position, we are focused on further
improving systems to manage growth including pursuing our extensive port
capacity expansion programme.
Capital works spending totalled $33.5 million in the last half of 2012. The
Company is midway through a $170 million, three-year programme, which
includes major expansion of the Tauranga Container Terminal.
The Terminal''s berthage capacity is being increased by 28% with a 170-metre
wharf extension which will be completed by late March 2013. A sixth container
gantry crane is to be commissioned in March 2013.
The Port hopes to begin dredging of the shipping channel later this year to
cater to growing traffic at the port and the impending arrival of larger
ships. These ships will be an enabler of growth not only for the Port of
Tauranga, but also the broader national economy. New Zealand''s economy
desperately needs the $338 million of benefits that the New Zealand Shippers''
Council estimates will flow from bigger ships operating on the South East
Asia trade routes.
Meanwhile, in September, Port of Tauranga and Ports of Auckland launched a
joint cargo management system, PortConnect, which creates a single interface
for customers dealing with the ports'' independent IT systems. PortConnect
gives shipping companies, importers, exporters, transporters and regulatory
authorities an easy-to-use system for improving the timeliness and accuracy
of cargo information.
Associates
In November, Port of Tauranga sold its share in its stevedoring subsidiary,
C3 Limited, to Asciano. The Company''s subsequent $34 million purchase of
forestry marshalling company Quality Marshalling (Mount Maunganui) Limited
took effect from 1 February 2013 and will be reflected in the full year
accounts.
Quality Marshalling, like Port of Tauranga''s other subsidiaries and
associates, provides wrap-around services that consolidate and develop the
Port''s customer supply relationships. It is New Zealand''s second largest log
marshalling and scaling company, with operations at Mount Maunganui,
Northport, Murupara, Rotorua, Kaingaroa, Napier and Auckland.
Earnings from subsidiaries and associates rose 13.1% to $7.553 million, with
strong performances from Tapper Transport and Northport.
Outlook
Port of Tauranga has entered its twenty-first year as a listed company well
positioned for the second half of the financial year.
Log exports are expected to continue to increase in volume, due to strong
demand from the Chinese markets.
We also expect to increase container volumes as the port consolidates its
position as the pre-eminent national freight gateway. Meanwhile, the growing
diversity of our freight ensures Port of Tauranga is well placed to weather
any short-term fluctuations in individual cargo volumes.
We remain comfortable with our previous market guidance of after-tax earnings
for the 12 months to 30 June 2013 in the region of $75 million to $79
million.
For further details, contact:
Mark Cairns
Chief Executive
Telephone: 07 572 8829
Mobile: 021 978 887
John Parker
Chairman
Mobile: 0274 421 854
http://www.port-tauranga.co.nz/Media-Room
Underlying Profit After Tax (Non Statutory Disclosure)
Six Months
Ended
31 December
2012 Six Months
Ended
31 December 2011
NZ$000 NZ$000
Reported profit after tax1 74,209 34,571
Gain on sale of associate2 (38,335) 0
Termination of interest rate swaps3 4,610 0
Tax impact of termination of interest rate swaps (1,291) 0
Underlying profit after tax 39,193 34,571
1 Reported profit in accordance with New Zealand Generally Accepted
Accounting Practice.
2 Gain on sale of C3 on 28 November 2012.
3 The termination of interest rate swaps resulting from being over hedged as
a result of the receipt of $70 million from the sale of C3 Limited.
About Port of Tauranga
Port of Tauranga is New Zealand''s largest port. It operates wharves at
Sulphur Point and Mount Maunganui in Tauranga, as well as MetroPort, a
rail-linked inland port in South Auckland.
The Port of Tauranga Group includes:
o Tapper Transport Limited - New Zealand''s largest wharf cartage company and
operator of a container freight station adjacent to MetroPort Auckland.
o Quality Marshalling (Mount Maunganui) Limited - New Zealand''s second
largest log marshalling and scaling company, with operations at Mount
Maunganui, Northport, Murupara, Rotorua, Kaingaroa, Napier and Auckland.
o Northport Limited - a joint venture with Northland Port Corporation,
operating a deepwater commercial port at Marsden Point.
o MetroPack Limited - a container packing and unpacking facility based in
Auckland.
o MetroBox Auckland Limited - a container cleaning, repair and storage
facility at MetroPort, operated in a joint venture with KiwiRail.
o Cubic Transport Services Limited (37.5% ownership), specialists in moving
freight within New Zealand.
End CA:00233231 For:POT Type:HALFYR Time:2013-02-21 10:16:14