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

 


Transpacific Industries returns to annual profit

Transpacific Industries returns to profit, helped by sale of NZ unit

By Suze Metherell

Aug. 19 (BusinessDesk) - Transpacific Industries Group, the Queensland-based waste-management company, returned to profit and will resume paying dividends after a six-year pause after using proceeds from asset sales to repay debt.

Profit from continuing and discontinued operations was A$28.9 million in the year ended June 30, 2014, turning around a loss of A$200.4 million a year earlier, the company said in a statement. Revenue fell 4.9 percent to A$1.42 billion as sales in its Cleanaway business and industrial segment declined. The group declared a dividend of 1.5 Australian cents per share, with a record date of Aug. 29 to be paid on Oct. 8. The company has not paid dividends since 2008, it said.

The waste manager hired new chief executive Bob Boucher last October as part of its plan to strengthen its balance sheet after a debt-fuelled expansion before the global financial crisis, culminating in 2008 with the A$1.25 billion acquisition of rival Cleanaway to create Australasia’s biggest waste disposal firm.

Transpacific Industries sold its New Zealand business to Beijing Capital for $950 million, recognising a gain of A$41.1 million, having acquired the operation for $870 million in 2006. Separately, it sold its Commercial Vehicles for a gain of A$131 million.

After using the proceeds from asset sales to repay debt, Transpacific Industries had a net cash position of A$137 million at June 30, from a net debt position of A$978 million a year earlier, it said.

"The transformation of our balance sheet has been completed," said Boucher, after the company sold or closed 39 non-core, under performing branches as well as the New Zealand and vehicle businesses. "The next phase is improving our operational performance and laying a solid platform for growing our business and improving cash flows."

Transpacific Industries took a A$189 million after-tax charge related to landfill rectification and remediation provisions, which was offset by the business sale income.

The dual-listed shares rarely trade on the NZX and were unchanged at $1.20, having declined 11 percent this year. On the ASX they last declined 7.6 percent to A$1.01, and have fallen 6.6 percent since the start of the year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news