Financial results for the year to 30 June 2016Strong container volumes offset a fall in log exports
Highlights
- Net Profit After Tax down 2.4% to $77.3 million following increase in depreciation charges and downturn in log volumes
- Parent EBITDA rises 2.2% to $125.7 million as strong growth in container traffic offsets a decline in log exports
- Container volumes increase 12.1% to just over 950,000 TEUs
- First 9,500 TEU ships to start calling at Port of Tauranga in October after channel dredging completed and landside facilities upgraded
- Final dividend of 30 cents per share lifts total dividends to 53 cents per share - up 1.9% on the prior year
- Special dividend of $34 million, or 25 cents per share, announced as part of a capital restructure targeting to return $140 million to shareholders over the next four years
- Improved health and safety performance - Total Recordable Injury Frequency Rate (TRIFR) down 62% to 5.6 (per million hours exposure)
Parent EBITDA for the year to 30 June 2016 rose 2.2% to $125.7 million from $123 million in the prior year as container traffic rose 12.1% to a record of more than 954,000 TEUs - up from 851,000 TEUs in the prior year.
These gains were offset by a decline in bulk cargoes reflecting continuing challenges in New Zealand's forestry and agricultural sectors. Notably, log exports fell more than one million tonnes with declines also in imported stock feed and fertiliser.
Reported revenues fell to $245.5 million from $268.5 million, due to a $32 million decrease in revenue as a result of having to equity account Tapper Transport as an associate company within our Coda partnership.
Net Profit After Tax fell 2.4% to $77.3 million as the Company's largely completed $350 million five year investment programme resulted in higher depreciation charges, which are up $2.7 million in the current year alone.
Port of Tauranga Chairman, David Pilkington, said: "We are very pleased with the progress that has been made against our long term strategy to extend our freight catchment to become the country's leading freight gateway and to prepare to welcome the arrival of the large ships into New Zealand waters.
"Strategic initiatives such as our alliance with OJI Fibre Solutions, Kotahi and Zespri / Tauranga Kiwifruit Logistics continue to drive a strong increase in container volumes to the port. These initiatives have also insulated the Company from this year's significant reduction in log exports.