Northland Port lifts half-year net profit 15.6%

Wednesday 16th February 2011

Northland Port Corporation is reporting a 15.6% rise in half year net profit to $2.1 million, boosted by high levels of log exports.

Revenue for the six months to the end of December was up 15.3% to $3.1 million, and an unchanged interim dividend of 2.5c per share is to be paid.

The company said its 50% interest in port operator Northport accounted for most of its operating earnings, with the group's better earnings mainly due to an improved trading result by Northport, which continued to have high levels of log exports.

Cargo volumes were ahead of budget and were expected to remain ahead for the second six months of the financial year, Northland Port said.

Northland Stevedoring Services and North Port Coolstores - both 50%-owned associate companies - continued to trade profitably returning above budget results for the first half of the year.

Both entities were projecting results close to budget for the second six months which should ensure that the results for the year remained above budget, Northland Port said.

Despite considerable effort by the group's property arm, the tenancy of industrial land holdings remained disappointing.

Only one tenancy started during the past six months, although there was a steady stream of inquiries.

Initiatives were being taken with Northport to promote the port and the adjoining industrial land, Northland Port said.

Shares in the group last traded at $1.67 on Monday, having ranged between $1.80 and $1.58.

NZPA

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