Port operations and its property investment arm recorded a consolidated first-half profit in the six months to December 31 of $19.6 million, 2% down on the $20.1 million recorded for the comparative period a year earlier.
The profit was boosted by a net $1.1 million gain on property sales following the $1.46 million sale of land to the Otago Regional Council, but offset by a $340,000 write-off of a deposit on a cancelled property purchase.
But the group operating surplus before tax of $4.6 million was 23% down, reflecting lower earnings before interest, tax, depreciation and amortisation (ebitda), due to higher wage and maintenance costs as a result of high container volumes.
Announcing the result yesterday to the port's shareholder the Otago Regional Council, chairman John Gilks said it had been a good year for the port.
The number of containers handled was up 25% from 71,000 in the corresponding reporting period (crp) to 89,000, with most of the increase coming from tranship containers, which represented 35% of container traffic.
Tranship containers were landed at the port and then shipped out again on another vessel.
The port handled 483,000 tonnes of conventional cargo, a 2% increase, with growth coming from greater volumes of woodchips and bulk cement but offset by fewer log exports.
In the period under review 253 vessels called at the port, a 9% decline on the crp figure of 277, due to fewer fishing vessels and Hapag-Lloyd suspending its weekly European service between mid-September and mid-January. Earnings from port operations before interest and tax (ebit) was $4.1 million, 9% less than last year, due to higher costs.
Rising property values underpinned Chalmers Properties' profit of $16.8 million for the six month period, which was slightly below the $17.8 million forecast profit.
Chalmers Properties' trading improved, with after-tax profit, excluding property disposals and unrealised revaluations, rising 23% to $2.1 million.
Port Otago received a $430,000 dividend from its 15.47% stake in the Lyttelton Port Company, lower than the $790,000 received a year earlier.
The company also recorded an unrealised gain of $2.06 million due to its share value appreciating from its original entry cost of $2.33 and $2.43 a share to the December 31 trading level of $2.56.
Operating revenue for the group rose from $26.7 million to $28.1 million and asset value grew from $371 million to $414 million.
Equity grew from 63% to 66% but net asset backing per share rose from $11.63 to $13.58.
Mr Gilks said Port Otago was well positioned for its traditionally busier second half of the year.
Port Otago paid the council a $2.5 million fully-imputed dividend.
