Port Otago delivered its full-year to June report to the ORC yesterday, comprising a $7 million ordinary dividend and a $5.25 million special dividend; totalling $103.1 million in dividends paid since 1988.
Port Otago's outlook mirrors that of the past few years, global financial uncertainty and the decisions made by giant shipping lines being the driving forces on future performance.
On the back of increased revenue up 6% at $74.2 million, Port Otago booked a 1% increase in container trade at 221,000 TEUs (20-foot equivalent units), and bulk and container trade volumes overall were up 10% to 3.6 million tonnes.
Chairman David Faulkner said "superficially" it was not a good year, as its after-tax profit declined 24%, from $12.4 million to $9.4 million, but that was offset by increased revenue of 6%, earnings before interest, tax and depreciation and amortisation up 7%, and underlying after-tax profit up 13%; which excludes one-off costs.
"The forecast was to do as good as last year, but that has been met and exceeded," Mr Faulkner told ORC councillors.
On the question of paying a $12.5 million dividend, compared with $7 million last year, Mr Faulkner said this was able to be done by cash generated during the year, highlighting that although a special $5.25 million dividend was delivered, the ORC's equity stake in Port Otago rose from 67% to 69% during the period.
As usual, the results of the port company's property company, Chalmers Property, was the subject of valuation volatility during the year, losing $5.2 million; compared with a gain of $3.2 million a year earlier.
Rental income was a record $11.4 million and profit from a Dunedin sale during the year was $1.7 million; earnings before interest and tax were up slightly at $10.8 million.
Its overall property portfolio, of which 54% by value is in Dunedin, booked a 4% decline to $197 million, of which Auckland and Hamilton properties were devalued, but not Dunedin ones.
Port Otago is expecting a decline in container numbers, it no longer being the South Island trans-shipment hub for Maersk, and also log exports are expected to slow after the 55% export gain driven by Chinese demand.
However, Mr Faulkner was confident of "continued success" in the year ahead, saying while six objections in relation to its channel-deepening consents have to be dealt with, it remains well positioned to service larger ships which shipping lines may yet introduce to New Zealand.
