Ports of Auckland Interim Profit Up
Ports of Auckland Chief Executive Tony Gibson has announced a ‘solid’ half year result for the company, achieved despite a fall in volumes and revenue.
The port produced an interim net profit of $31.6 million for the six months to December 31, a 9.5 per cent increase, despite falling revenue and container volumes. Revenue was down 2.2 per cent and container volumes fell 3.3 per cent.
The port company declared an interim dividend of $25.9 million, up from $25.5 million a year earlier.
"The first half of the year has been anything but plain sailing. Global trade trends and shipping changes have affected container volumes, while China’s slowdown has impacted bulk volumes, particularly iron sand exports," said Gibson. As a result revenue has fallen slightly, but profit is up due to lower costs, largely as a result of the timing of repairs and maintenance."
"Container shipping lines have been subject to intense competition in the New Zealand market, with significant over-capacity resulting in unsustainable freight rates," Gibson said.
"This situation is expected to continue into the second half and beyond and will affect our full-year result."
Ports of Auckland has been building a network across the North Island in a bid to reduce costs for exporters using its supply chain. It completed a series of acquisitions with a $23 million purchase of land north of Hamilton. The company today said it was considering extending its network into the South Island.
Ports of Auckland also said it plans to sell Onehunga port after shifting Holcim cement handling facilities to Waitemata.
