Sharechat Logo

Port of Tauranga lifts FY earnings guidance after 1H cargo volumes rise

Friday 23rd February 2018

Text too small?

Port of Tauranga, New Zealand's biggest port company, raised its full-year earnings guidance after posting a 13 percent gain in first-half profit that was driven by growth in cargo volumes.

Net profit rose to $47 million in the six months ended Dec. 31 from $41.9 million a year earlier, the company said in a statement. Sales rose to $141 million from $125 million.

The company raised its forecast for full-year profit to a range of $92-$96 million from the $88-$92 million guidance it gave at its annual meeting and up from $83.4 million in 2017. It said container volumes rose about 16 percent to 590,803 TEUs (twenty foot equivalent units), transhipped containers jumped about 48 percent. Import volumes rose 21 percent, led by increases in grain and dairy feed supplements, while exports rose 9.4 percent, led by a 13 percent gain in log volumes.

Chief executive Mark Cairns said the port expects to handle 1.2 million TEUs in the year ending June 30, having broken through 1 million for the first time last year. “We can handle up to three million TEUs annually without any further reclamation," he said, citing Ernst & Young's Port Future Study. "We consider all evidence points to the trend to larger vessels continuing and even accelerating. Port of Tauranga is the only port in New Zealand able to accommodate the big ships and their cargoes."

The company will pay an interim dividend of 5.7 cents a share, up 14 percent from a year earlier. The port company's shares last traded at $4.99 and have gained 14 percent in the past 12 months.

(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:

NZ dollar trades near 2019 low on Aussie rate outlook, China worries
Short window left to lock in good interest rates on term deposits
MediaWorks breakeven stymied by radio
Loan-to-value restrictions effective but have some drawbacks - RBNZ
Yili deal a timely cash injection for Westland farmers - ANZ
AFT interested in medicinal cannabis but says it's not commercially viable yet
Serko chalks up another year of 28% sales growth, profit dips on acquisition adjustment
NZ first-quarter retail sales grow 0.7%, slightly better than expected
SkyCity poised to enter online gaming space
AFT narrows net loss, turns cash flow positive

IRG See IRG research reports