You are using an older browser version. Please use a supported version for the best MSN experience.

Tauranga port's half-year profit up 8.5pc

NZ Newswire logoNZ Newswire 22/02/2017 Jonathan Underhill

Port of Tauranga has posted an 8.5 per cent gain in first-half profit and raised its full-year guidance, saying both exports and import cargo volumes rose, including a rebound in the outbound log trade.

Profit rose to $41.9 million in the six months ended December 31 from $38.6m a year earlier, it said on Thursday.

Revenue climbed 2.8 per cent to $125m.

Container volumes at New Zealand's largest port rose 8 per cent to 510,074 TEUs and the company said it was on track to handle more than 1 million containers for the first time in the full year.

Log exports jumped 21 per cent to almost 3 million tonnes, dairy exports rose 4 per cent to 1.1 million tonnes and kiwifruit shipments rose 16 per cent to more than 477,000 tonnes.

That helped drive a 21 per cent gain overall in export volumes while imports rose 7 per cent. Port of Tauranga has dredged its harbour channels to accommodate the next generation of bigger ships.

The first-half results gave the company confidence to lift its guidance, saying full-year earnings would be at the upper end of its forecast range of $79m to $83m, an increase on the $77.3m reported for 2016.

"With bigger ships calling at Tauranga, we are handling significantly larger volumes of cargo per shipments," said chief executive Mark Cairns.

The company will pay an interim dividend of 5 cents a share, up 8.7 per cent from a year earlier after adjusting for the five-for-one share split last October.

Port of Tauranga shares last traded at $4.42 and have gained 26 per cent in the past 12 months, outpacing a 15 per cent gain in the S&P/NZX 50 Index.

image beaconimage beaconimage beacon