Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Eastland Group – Six Month Financial Result

November 22, 2012

For immediate release


Eastland Group – Six Month Financial Result

Gisborne based Eastland Group Limited is pleased to announce its unaudited financial result for the first half of the current financial year to September 30, 2012.

Revenue for the six months was 19.7% higher at $45 million, compared to $37.6 million for the same period the previous year.

Earnings after taxation for the half year were $7.4 million compared to $4.2 million for the same period the previous year.

The assets of the group have remained relatively stable over the six months with total assets now standing at $353 million. Bank debt has also remained stable at $98.5 million.

A half year gross dividend of $3.3 million was paid to our shareholder the Eastland Community Trust, with another dividend of the same amount forecast to be paid prior to the end of the financial year.

That equates to a full year gross dividend of $6.6 million, up from $6.3 million the previous year. In addition to this $1.3 million in interest was paid on the shareholder capital notes for the six months.

The big contributors were the network, port and generation businesses which collectively represent more than 90% of the company’s total investments. This is consistent with the company’s strategy of focusing primarily on the energy and logistics industries.

In addition, the strategy of diversifying investment outside of the region – as a way of growing and managing geographic risk – has resulted in generation assets that are performing well and currently producing strong returns.

The infrastructure at the port is under significant pressure from the increased forestry volumes, which has led to the company accelerating its port development plan.

Since the acquisition of the port in 2003, the company has spent $51.5 million on capital enhancements to the port – over and above the purchase price and normal operational maintenance expenditure – and is planning to invest a further $55 million over the next five years to accommodate the customer projections for forestry harvest.

Therefore, while the port is profitable the business will have a negative cash flow over the next few years as it continues to fund the necessary investments. The port is a vital piece of infrastructure both for the region and a forestry industry that now employs over 1,000 people.

Similarly, more than $38 million has been invested into the network since 2003, and a further $59 million in capital projects is forecast within the region over the next five years.

This level of investment is only possible because the businesses are profitable.
Investment in any existing or new generation projects is additional to the above numbers, and the company continues looking to develop new sustainable energy generation projects, in particular geothermal and hydro opportunities.

The electricity distribution business provided a solid regulated return, and the network performed well over the winter months, particularly given the number of significant weather events during this period.

The outlook through to financial year end March 31, 2013 remains positive. At an operating level the group is performing very well in an environment which both nationally and internationally is far from stable.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Food: New National Science Challenge To Launch Research

What if New Zealand developed the next generation of foods that will help consumers maintain their health and protect them against diabetes, irritable bowel syndrome or chronic allergies? What if we could answer some big science questions – use that knowledge to develop foods with proven health benefits and boost our economy at the same time? More>>


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news