POT
20/02/2014 09:34
HALFYR
REL: 0934 HRS Port of Tauranga Limited (NS)
HALFYR: POT: POT Reinforces Position as NZ's Pre-eminent Freight Gateway
Port of Tauranga Reinforces Position
As New Zealand's Pre-eminent Freight Gateway
Strategic acquisitions extend freight catchment nationwide
Highlights
o Net Profit After Tax of $39.3 million for the six months to December 2013,
compared to underlying profit1 of $39.2 million for the six months to
December 2012
o Group EBITDA increased 5.5% to $71.5 million
o Overall trade increased 5.8% to 9.9 million tonnes
o Exports increased 6.6% to 6.8 million tonnes
o Imports increased 4.1% to 3.1 million tonnes
o Major expansion into the South Island announced
o Interim dividend increased 5% to 21 cents per share.
Port of Tauranga (NZX.POT), New Zealand's largest port, today reported good
progress reinforcing its position as New Zealand's pre-eminent freight
gateway and a financial result for the six months to 31 December 2013 in line
with the same period in the prior year.
Port of Tauranga Chairman David Pilkington said: "Port of Tauranga is very
well positioned for its next phase of growth. We have again delivered a
strong first half result, while our acquisition of a half share in PrimePort
Timaru and our development of a freight hub in Rolleston, southwest of
Christchurch, opens a new frontier of opportunities."
"These investments coupled with the emerging strength of the New Zealand
economy and strong international demand for the country's agricultural and
forestry exports will continue to drive increases in cargo volumes across our
wharves."
Reflecting this confidence, the Board has resolved to pay an interim dividend
of 21 cents per share, up 5%, on the prior comparative period. The record
date for entitlement to the interim dividend is 7 March and it will be paid
21 March 2014.
Group EBITDA for the period grew 5.5% to $71.5 million, from $67.7 million in
the same period last year. Net Profit After Tax (NPAT) of $39.3 million was
slightly ahead of the prior year's underlying profit1 of $39.2 million. NPAT
for the six months to 31 December 2012 of $74.2 million included a one-off
$35.3 million gain on the sale of our stake in cargo handling group C3
Limited.
Overall trade volumes rose 5.8% to 9.9 million tonnes from 9.4 million tonnes
in the prior year. The Port achieved this growth due to increases in bulk
exports such as logs and bulk imports of dairy feed supplements and
fertiliser, balanced by an 11.8% decrease in the number of containers handled
to 381,038 TEUs (twenty foot equivalent units) from 431,878 TEUs in the
comparative period. This decline reflected a 17.5% fall in dairy exports over
the comparative period, however dairy volumes are expected to be greater than
last year for the full year ended 30 June 2014.
Port of Tauranga Chief Executive Mark Cairns said "Port of Tauranga has
turned in another strong performance notwithstanding the loss of a major
import call whilst continuing to invest in significant further infrastructure
and strategic acquisitions to extend our freight catchment nationwide."
Total imports increased by 4.1% to nearly 3.1 million tonnes from 3.0 million
tonnes in the prior year. Total exports rose 6.6% to 6.8 million tonnes from
6.4 million tonnes in the comparative period.
Strategic Investment
Port of Tauranga has established a South Island presence acquiring a 50%
share of PrimePort Timaru and taking over their Container Terminal
operations.
"By developing Timaru into a feeder port, South Island importers and
exporters will benefit from the freight savings and efficiencies offered by
larger ships and the greater number of services calling at the Port of
Tauranga" Mr Cairns said.
In addition to the South Island investment, Port of Tauranga continues to
make significant investment in infrastructure and assets to accommodate cargo
growth and the trend towards larger vessels.
A new Liebherr gantry crane, the seventh in the Tauranga Container Terminal
fleet, is currently being assembled and will be commissioned in March. The
Terminal set an Australasian record in productivity in the three months to 30
September 2013 (as measured by the Ministry of Transport), achieving an
average net crane rate of 37.1 moves per hour, well ahead of the national
average of 33.7 moves per hour. This improvement in productivity has
continued into 2014 with a record average net crane of 39.4 moves per hour
being achieved over January 2014.
Port of Tauranga has ordered two new 74 tonne bollard pull tug boats for
delivery early in 2015. Meanwhile, our dredging project, to widen and deepen
the shipping channels in Tauranga Harbour for larger ships, is in the final
planning stages and work is expected to commence in the next financial year.
Subsidiaries and Associates
Whilst Quality Marshalling's loss of the Mount log marshalling contract
represents a setback, the Company remains confident in the ability of this
business to contribute satisfactorily in the future and sees several areas
where innovation can play a key role in delivering benefits to customers.
Northport had another solid first half with earnings up 4% on trade volumes
increasing 7.6%.
Port of Tauranga subsidiary Tapper Transport Limited purchased the assets of
Priority Logistics Group, a transport and logistics company based in Mount
Maunganui. The acquisition was completed in July 2013 and enables Tapper
Transport to expand into the Bay of Plenty market.
MetroBox, the Group's Auckland-based container storage, handling and
maintenance company, is expanding its operations and has established a new
business partnership with Specialised Container Services, which operates an
11 hectare site in Mangere. The facility will now be run jointly with
MetroBox's Southdown site, adjacent to the MetroPort inland port.
The MetroPort site has also been significantly expanded with the purchase of
the adjacent 6.8 hectare Gateside Industrial Park. The property includes
three large industrial warehouses, an office building and more than two
hectares of land.
Outlook
Overall, the Group is well positioned to capitalise on the ongoing trends of
growing cargo volumes and increasing average size of vessels. Trade volumes
are expected to improve over the second half of the year and provided there
are no significant market changes, we expect to achieve full year earnings
for the 12 months ended 30 June 2014 in the region of $77 million to $81
million.
For further details, contact:
Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829
http://www.port-tauranga.co.nz/Media-Room
About Port of Tauranga (http://www.port-tauranga.co.nz/)
Port of Tauranga (NZX.POT) is New Zealand's largest port. It operates wharves
at Sulphur Point and Mount Maunganui in Tauranga, MetroPort, a rail-linked
inland port in South Auckland, PrimePort Timaru and is developing a new
intermodal freight hub in Rolleston southwest of Christchurch. The Port of
Tauranga Group includes: Tapper Transport, New Zealand's largest wharf
cartage company; Quality Marshalling, a forestry materials handling company;
Northport, which operates a deepwater commercial port at Marsden Point;
MetroPack, a container packing and unpacking facility based in Auckland;
MetroBox, a container cleaning, repair and storage facility, and New Zealand
freight specialist Cubic Transport Services.
Reconciliation of Underlying Profit After Tax
Six months ended 31 December 2013
$000 2012
$000
Reported profit after tax 39,342 74,209
Gain on sale of associate 0 (38,335)
Loss on termination of interest rate swaps 0 4,610
Tax impact of termination of interest rate swaps 0 (1,291)
Underlying profit after tax 39,342 39,193
The key difference between underlying profit and the reported profit in 2012
relates to the sale of the investment in C3 Limited, and the derivative
contracts closed out that related to debt repaid from consideration received
from the sale.
End CA:00247246 For:POT Type:HALFYR Time:2014-02-20 09:34:19
