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Northland Port

By Dan Stratful

Monday 30th April 2012

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Northland Port (NZX: NTH ) owns various investments based around Marsden Point, a deep water port near Whangarei. NTH owns Northport (Port Operating Company – 50% stake),  Northland Stevedoring Services (Stevedores – 50% stake), North Port Coolstores (Coolstore Operators – 50% stake) and a land bank zoned for industrial use which it is seeking to lease.

NTH listed on the NZX in 1992, with Northland Regional Council holding a 53% stake and Ports of Auckland holding 19.9%, which means the shares are relatively illiquid.

NTH reported a much improved first half result for the 6 months ending 31 December 2011 as tax paid surplus increased to $3.2 million from $2.1 million the prior corresponding period.

The driver behind the increase was an improved trading result from Northport which experienced above budget results as cargo volumes of 1.4 million tones, were 0.35 million tonnes ahead of last year.

North Port Coolstores and Northland Stevedoring Services also traded profitably in the first half and NTH made progress with some of its leasing activities. The increase in cargoes was due to increased log exports and NTH continues to expect that log exports for the year to 30 June 2012 will be ahead of budget.

As the closest port to many Asian and Australian markets NTH appears to be well placed, however most potential business by-passes NTH and goes to Port of Tauranga or Port of Auckland, and more investment would be needed to secure those additional volumes.  

Status: HOLD

NTH’s shares today traded at $2.00

For portfolio, sharemarket and fixed income enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232, dan.stratful@irg.co.nz
**A disclosure statement is available, on request and free of charge.


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Special Report: Ports of Call