Northland Port lifts profit 51% on buoyant log volumes

Published: Fri 26 Aug 2011 09:43 AM
Northland Port lifts annual profit 51% on buoyant log volumes
Northland Port Corporation said annual net profit rose 51%, largely reflecting buoyant log volumes through associate company Northport.
The port's net profit for the year ended June 30 rose to $4.7 million, or 11.45 cents per share, from $3.1 million, or 7.59 cents per share.
Chairman Geoff Vazey said Northport had experienced above-budgeted results consistently throughout the year, caused mainly by buoyant log volumes.
Cargo through the Northland Port was about 2.4 million tonnes, 0.4 million tonnes ahead of the previous year.
“The main reason once again was in log exports, however other cargoes also reflected volumes which were above budget and ahead of the previous year,” Vazey said.
“While indications are for a slowing of log exports, this has yet to manifest itself as volumes for the first month of the new year continue to be above those budgeted,” he said.
Northland Stevedoring Services and North Port Coolstores performed steadily although the coolstore's profitability was affected by the government's decision to disallow depreciation on buildings.
The uptake of the company's industrial land holdings continues to be disappointing with prospective tenants being reluctant to commit capital expenditure in such an uncertain economic climate, Vazey said.
The value of the port's land in the Marsden Point area fell $8.3 million from a year earlier and its revaluation reserve stood at $80.3 million.
Northland Port will pay a fully imputed final dividend of four cents per share, taking the annual payout to 6.5 cents from 5.5 cents the previous year.
Northland Port shares last traded on Wednesday at $1.44, their year low, having trended lower from their $1.75 January high.
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