Adsteam Marine Looks For Improved Profits

Tugboat operator Adsteam Marine Ltd. is aiming for improved profits in 1999/2000 after reporting a 1998/99 net profit of $11.1 million. The company achieved a 1997/98 net profit of $10.8 million. Managing director David Ryan said the company was enthusiastic about improved returns from its Newcastle operations, which were expected to return to profit this year. Ryan said earnings before interest, tax and abnormals had grown 5.8 percent in 1998/99 to $18.9 million. Revenue rose to $77.9 million from $70.2 million, with net earnings affected by a 23.2 percent higher tax provision. "The company was targeting further earnings growth in the current financial year - both from traditional operations and from newly acquired assets," he said. Ryan said the company's Newcastle operations north of Sydney had been expanded significantly through the recent acquisition by Waratah Towage, its joint venture with Howard Smith Ltd., of Hunter Towage Services and the tug Ballina from BHP Ltd. "Our Newcastle operations have been in a loss-making situation for far too long and we look forward to that business returning to profit in 1999/2000," he said. He said the improved 98/99 results were due to a combination of factors, including the first full year contribution from Burns Philip Shipping Agencies, acquired in February 1998. "The group also benefited from improved volumes through several ports, mainly due to higher numbers of shipments of containers, grain, general cargo and, in Queensland, coal and bauxite," he said.