Ports of Auckland 2014/2015 Annual Results

Ports of Auckland 2014/2015 Annual Results

Highlights

1. Volumes

• Container volumes up 0.4% to 972,434 TEU from 968,741 TEU last financial year. Volumes were expected to decline as a result of the loss of a major service.

• Car volumes up 17.4% to 243,801 units, from 207,591 last financial year.

2. Container Handling Productivity

• Container handling productivity hit record highs on all measures

3. Strategic Initiatives

• Developing a North Island supply chain network to support future growth

• Investigating possible automation at our container terminal

• Investing in container terminal infrastructure, wharves and cranes

• Improving our sustainability by increasing the number of containers moved by rail

4. Financials

• Total group revenue was $218.3m, down from $221.2m the year before, reflecting the sale of our subsidiary Connlinx part way through the year.

• Declared dividend of $41.7 million for 2014/15. This compares to an ordinary dividend of $50.2 million plus a special dividend of $16.4 million the previous financial year.

• Underlying profit was $61.4m compared to $63.4m last year, down 3.2%.

• Net profit after tax was $63.2m compared to $74m last year, down 14.6%.

• Capital expenditure was $47.9m in 2015, up from $27.4m in 2014.

Ports of Auckland has declared a $41.7 million dividend for Auckland in the 2015 financial year. “I am very pleased with this result,” said Chief Executive Tony Gibson today when announcing the annual results for the Council owned company. “We have delivered another strong dividend for the city and are well positioned for further growth.”

“There is much about our performance of which Aucklanders can be proud. We have made better than expected progress replacing container volumes after Maersk moved a major service away from Auckland early in our financial year. Container volumes finished the year 0.4% up, against expectations that volumes might fall.

Our container terminal is the most efficient in Australasia, with record productivity this year. We continue to be New Zealand’s largest container port and a vital part of Auckland’s prosperity.

“Multi-Cargo volumes have held up well, with car volumes increasing 17.4% to a record 243,801 units. Total breakbulk tonnage (including cars) was up 4.4% on the year before,” said Gibson.

“There were several unusual items this year which reduced our reported profit and dividend compared to last year’s record level. $7.3 million has been put aside to cover costs and provisions for the Bledisloe Wharf extensions following the High Court’s decision to over-turn the consents granted by Auckland Council. If the project had certainty, which it no longer has, those costs would not have been expensed.

“We incurred a $4 million cost related to wharf and building demolition and made $2.4 million in severance payments to workers who left the port after settlement of a collective agreement with the Maritime Union. The result also includes a gain from the revaluation of property of $14.6m.”

“On a like for like basis, underlying profit was $61.4m compared to $63.4m last year. Costs were impacted by increases in infrastructure repairs and maintenance, Unitary Plan processes and development of future initiatives.”

“Prospects for the coming year seem subdued, as a result of lower dairy prices and a fall in the New Zealand dollar. We are expecting a softening in some import trades, slower growth in car volumes and a decline in bulk exports.”

“Long term growth prospects remain strong, in line with Auckland’s growth. As the port on Auckland’s doorstep we are the most direct route into the Auckland market and we expect our volumes to continue to climb. We are making several strategic investments to ensure we can meet that growth.

“We are investing in a North Island supply chain network, with new freight hubs in the Manawatu and Bay of Plenty, and an expansion of our existing freight hub in South Auckland.”

“By growing export volumes through the port we will balance the volumes of imports being driven by Auckland’s strong growth and achieve greater supply chain efficiencies. It is a win-win for Auckland and for New Zealand on the global stage.

As part of this strategy we are actively growing the use of rail to move containers. Rail services increased from 8 per week to 21 and rail volumes are up to over 100,000 TEU a year. The total number of containers (TEU) moved by truck fell by 53,508.

“To improve productivity and capacity, we are investigating partial automation of our container terminal. We are currently consulting staff and will shortly commission a scoping study. A decision on whether or not to proceed will be made in early 2016.”

“In October we will finish a 50m wharf extension at Fergusson Container Terminal and start construction of Fergusson North Wharf. These projects increase our terminal berth space by around 50% and are essential for handling growth in both ship size and trade volumes.”

“Overall, our performance has been good given the challenges we have faced. We have a comprehensive range of initiatives underway that will ensure we continue to deliver strong dividends to the city,” Tony Gibson concluded.

ENDS

© Scoop Media