Lyttelton Port expects 2011 underlying profit of at least $10 mill

Thursday 28th October 2010

Lyttelton Port is forecasting an underlying profit of at least $10 million in 2011 as the port shrugs off the effects of the Canterbury earthquake and starts the financial year strongly.

Chairman Rodger Fisher told shareholders the South Island’s biggest port operation made a “very strong start” to the year and is tracking “significantly ahead” of the same trading period in 2009, with the cost of the 7.1 magnitude quake expected to be covered by insurance. International Financial Reporting Standards may result in “significant positive or negative impacts” on the bottom-line, he said.

“At this early stage of the year our forecast for the full financial year is a result of at least $10 million and we are ahead of the first quarter this year,” Fisher said. “Due to accounting requirements in the recognition and timing of insurance proceeds and the related expenditure, the impact on the profit is extremely difficult to forecast at this time.”

Lyttelton Port probably faces a repair bill, largely covered by insurance, of at least $50 million in the wake of last month’s quake, which also put the kybosh on a planned merger with Port of Otago.

The shares were unchanged at $2.30 in trading today.

Businesswire.co.nz

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