Friday 20th February 2004 |
Text too small? |
The trouble is the water might be a little too calm, given the company's modest earnings growth outlook.
The company said last year that earnings would be flat over the next year as it upgraded its facilities.
There is still no tangible evidence of a turnaround in performance and the upgrade has already taken longer and cost more than expected.
December first-half profit rose 25% to $5.5 although last year's figure was deflated by a $2.9 million union settlement. Revenues for the six months to December slipped 4%, reflecting fewer ship visits and lower coal revenues.
While pricing has stabilised, operating costs continue higher than anticipated and margins remain weak. The company said costs for the full year continued to be affected by higher insurance, electricity and maintenance costs.
On a more positive note, Lyttelton Port seems to be winning back the support of the shipping lines with the return of P&P Nedlloyd's NZAX service to Asia.
There is still some uncertainty surrounding Lyttelton Port's industrial negotiations, despite last year's payout. The company said it has started discussions with unions over the employment contract. It was not seeking any significant change to terms and conditions.
The company projected full-year ebitda (earnings before interest, tax, depreciation, and amortisation) of $24.3 million, down from $26.5 million in the June 2003 year. With only modest earnings growth in prospect, retention of the current dividend was key to share price performance, First NZ Capital noted.
No comments yet
Skellerup achieves another record result
August 21st Morning Report
Me Today signals capital raise and provides trading update
Seeka Announces Interim Result and Updates Guidance
FBU - Fletcher Building announces FY25 Results
August 20th Morning Report
RUA - New Zealand grown products support Rua's global strategy
Devon Funds Morning Note - 19 August 2025
Seeka Announces 15 cent Dividend
MCY - Major renewable build advanced despite 10% earnings dip