Sharechat Logo

Ports of Auckland 1H profit growth stalls as restructuring costs offset revenue gains

Friday 2nd March 2018

Text too small?

Ports of Auckland reported flat first-half earnings and trimmed its interim dividend payment to the city as the cost of introducing greater automation offset a 9.1 percent increase in revenue. 

Net profit slipped to $29.2 million in the six months ended Dec. 31 from $29.3 million a year earlier, the Auckland port operator said in a statement. The company paid a dividend of $23.8 million for the period, down from $25.3 million a year earlier. 

Ports of Auckland embarked on a transformation programme in 2016 to prepare the transport hub for a more automated future and has developed a draft 30-year master plan to prepare the operations for the future. Capital expenditure rose to $70.7 million from $44.5 million a year earlier. It will start testing its first two automated straddle carriers and has started work on automating truck handling lanes which are scheduled to go live next year. 

"Despite advances in container handling technology, in many ways shipping is still a traditional industry," chief executive Tony Gibson said. "The processes behind most shipping transactions could be described as archaic, but that is set to change rapidly with the advent of technologies such as blockchain." 

The port's future will be considered in a government review of the Upper North Island Supply Chain study, with a rail extension to Whangarei's Northport under consideration as an option to relocate part of Auckland's port operations out of the central city. 

That review has asked KiwiRail to put forward infrastructure proposals, and Ports of Auckland today said it was working with the state-owned rail operator to see how it can shift more freight on to the rail network and off roads. 

Ports of Auckland's revenue rose to $120.6 million from $110.5 million a year earlier, with container volumes up 3 percent to 508,262 and total general cargo volumes rising 4.7 percent to 3.41 million tonnes. 

Gibson said that volume will probably continue in the second half of the year "with a strong result in January and good volumes forecast for February." 

The port's wage bill rose 18 percent to $33.3 million, while pension costs gained 8 percent to $1.1 million and restructuring costs climbed to $213,000 from $75,000 a year earlier. Contracted services costs jumped 71 percent to $15.4 million. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

RBNZ review seeks wider input on quantitative easing, bank supervision
NZ dollar rises on strong domestic exports, Trump comments on Powell
Goldsmith replaces Adams as Nat's shadow finance minister
Gold Report 25th June 2019
OECD joins KiwiBuild critics as 'reset' looms
Global trade crisis 'bad news' for open economies like NZ - OECD
Milk testing firm GEA Milfos to pay $925k for fixing prices
Dairy sales push May exports to record high
Pay rises lift employment confidence; outlook weak
Sky TV drops 'puck' deployment

IRG See IRG research reports