Port of Tauranga On Track for One Million Containers (TEUs)
FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2016
Half year net profit rises to $41.9 million from $38.6 million as the
country''s premier freight gateway benefits from rising cargo volumes and
continues to set standards for port productivity
Highlights:
o Revenue for the six months to 31 December 2016 rises 2.8% to $125.3 million
and net profit rises 8.5% to $41.9 million
o Total trade increases 8% from 10.1 million tonnes to 11.0 million tonnes
for the period
o Container volumes rise 8% to 510,074 TEUs, reinforcing Port of Tauranga''s
position as New Zealand''s largest container terminal
o On track to handle more than one million TEUs in the 2017 financial year -
a first for a New Zealand port
o Imports increase by 7% in volume while exports increased 21% as log volumes
recover
o Interim dividend of 5 cents per share - up 8.7% on the prior year''s figure
New Zealand''s largest freight gateway Port of Tauranga today announced it is
on track to become the first port in the country to transport more than one
million containers across its wharves in a single year.
It also announced a strong 8.5% improvement in Group half year net profit to
$41.9 million from $38.6 million in the same period a year ago, as half year
trade volumes grew 8% to 11.0 million tonnes and the Port continued to set
new national standards for port productivity.
Half year Group revenue increased 2.8% to $125.3 million.
The Port of Tauranga Board has declared an interim dividend of five cents per
share - up 8.7% on the prior year''s interim dividend1. The record date is 10
March and the payment date is 24 March 2017.
Chairman David Pilkington said: "Our results show the Port of Tauranga is
continuing to reinforce its position as the country''s premier freight
gateway. We have lifted revenue and earnings and moved record cargo volumes
including more than 510,000 TEU containers.
"Exporters, importers and the shipping lines are increasingly recognising the
benefits of our deep water port and our efficient freight handling and
stevedoring operations.
"In the 2017 financial year, we expect to become the first New Zealand port
to handle more than one million containers in a 12 month period. This
achievement is the direct result of our now-completed five-year $350 million
infrastructure investment programme, which has extended the Port''s freight
hinter-land across the country, prepared the port for large ships and
provided importers and exporters with highly-efficient routes to the
country''s most important markets.
"Our world-class infrastructure will benefit the New Zealand economy for
years to come," Mr Pilkington said.
Chief Executive Mark Cairns said: "We are consolidating our position as the
port of choice for international shipping lines, with ship visits in the
six-month period rising 4% to 774 from 741 in the same period last year.
"Following the completion of our harbour dredging programme in September
2016, Maersk introduced a large vessel service, with Tauranga as its only New
Zealand call. The 9,500 TEU Aotea Maersk has been a regular visitor since
October.
"Meanwhile, Hamburg Sud last month announced it will introduce in March a big
ship, peak season weekly service, with Tauranga as its only New Zealand call.
The largest cruise ship ever to visit the Bay of Plenty - the 4,700
passenger, 1,600 crew Ovation of the Seas - also made its maiden voyage to
Tauranga on Boxing Day and has made a couple of further calls since.
"It is pleasing to see shipping lines take advantage of the possibilities
created by the harbour dredging programme to bring in larger vessels. The
economies of scale that come with larger ships drive transport efficiencies
and ensure New Zealand exporters retain direct routes to international
markets.
"With bigger ships calling at Tauranga, we are handling significantly larger
volumes of cargo per shipment. We continue to lead the way in setting
productivity standards for the New Zealand port industry and we strive to
look at all aspects of the container terminal operations to ensure that we
remain cost-effective."
Ministry of Transport (MOT) figures from the fourth quarter of the 2016
calendar year show a crane rate for the quarter of 35.9 container transfers
per hour, compared with the weighted national average of 33.7 moves per hour.
"Our ship service rate was 89.8 container exchanges per hour per ship,
compared with the national weighted average of 76.9. Such strong results,
which rank Port of Tauranga in the top tier of Australasia''s most productive
ports, are not only good for our shareholders, they are also in the best
interests of the New Zealand freight industry," Mr Cairns said.
During the half year period, Port of Tauranga invested $43.9 million in new
infrastructure to further increase storage capacity and productivity. The
investments included final payments on the two new gantry cranes
commissioned, thirteen new straddle carriers and several property
developments at the container terminal.
A new purpose-built shed is nearing completion and will be used by Oji Fibre
Solutions (formerly Carter Holt Harvey) as a distribution hub, clearing the
way for Oji''s former facility to be demolished and new container slots
established to further enhance container terminal efficiency.
Traffic from our inland hubs continues to grow, with the numbers of
containers transferred by rail between Tauranga and our MetroPort facility in
Auckland increasing 20% compared with the first half of the previous
financial year.
Cargo trends
Export volumes increased 9% to 7.1 million tonnes and import volumes
increased 7% to 3.9 million tonnes. Overall, trade increased 8% to 11
million tonnes. Containers handled increased 8% to 510,074 TEUs.
Trans-shipped containers (containers transferred between vessels at Tauranga)
increased 2% to 75,583 TEUs.
Log exports rebounded from the previous corresponding period, increasing 21%
in volume to nearly three million tonnes. Other forest products had mixed
results, with pulp volumes up slightly (3%) to 291,000 tonnes but paper
products were down 8% to 273,000 tonnes.
Dairy product exports increased 4% to 1,088,000 tonnes. Kiwifruit volumes
increased 16% to just over 477,000 tonnes, a trend which is expected to
continue for the next few years as the industry recovers from the PSA virus.
Other produce varied in volumes, with frozen meat exports decreasing by 25%,
apples increased by 6%, and onions decreased by 23%. Oil imports increased
10% in volume.
Fertiliser imports increased 10% and there was steady growth in other import
categories, such as dry chemicals (up 13%), bulk liquids (up 13%), cement (up
5%) and salt (up 14%). Food supplement imports for the dairy industry
decreased 10%, and grain volumes fell close to 20%.
Subsidiary/Associate Companies
Subsidiary and Associate profits were up slightly on last year to $8.04
million. In particular, Northport, and Coda had strong performances.
Outlook
Port of Tauranga is well positioned for the remainder of the financial year
and beyond. The arrival of the Hamburg Sud service in March should provide a
further boost to container volumes and ensure the Company reaches the
milestone of handling more than one million TEUs annually by the end of the
financial year in June.
Given the strong first half result, we expect earnings for the 12 months to
30 June 2017 to be at the upper end of our previous guidance of $79 million
to $83 million, provided there are no significant changes to market
conditions.
For more information, please contact:
Mark Cairns, Chief Executive David Pilkington, Chairman
Mob: 021 978 887 Mob: 021 609 635
http://www.port-tauranga.co.nz/Media-Room
Port of Tauranga is New Zealand''s largest port by volume of cargo and New
Zealand''s international freight gateway. It operates wharves at Tauranga,
Mount Maunganui and Timaru, as well as MetroPort Auckland, a rail-linked
inland port in South Auckland and MetroPort Christchurch, an intermodal
freight hub in Rolleston. The Port of Tauranga Group includes: Quality
Marshalling (100% ownership), a container handling company; Coda (50%
ownership), a freight logistics group; Northport (50% ownership), which
operates a deep water commercial port in Whangarei; PrimePort Timaru (50%
ownership), which operates the commercial port in Timaru; Timaru Container
Terminal (50.1% ownership), which leases and operates the container terminal
at Timaru and PortConnect (50% ownership), which was set up to operate an
online cargo management system, connecting ports to their logistics
companies. For more information about Port of Tauranga please visit
www.port-tauranga.co.nz.
End CA:00297240 For:POT Type:HALFYR Time:2017-02-23 08:30:21