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

 


Lyttelton Port profit boosted by insurance payments

Lyttelton Port profit boosted by insurance payments, takeover decision set for Monday

By Tina Morrison

Aug. 29 (BusinessDesk) - Lyttelton Port Co, Christchurch's ocean trade hub, posted a jump in annual profit and paid off its debt after settling insurance claims resulting from the 2011 Canterbury earthquakes.

Profit surged to $343.2 million, or 335.6 cents per share, in the 12 months ended June 30, from $16.9 million, or 16.5 cents, a year earlier, the port company said in a statement. The earnings were swelled by an after-tax insurance payment of $328.2 million in the latest year, compared with a gain of just $1.8 million the year earlier. One outstanding matter with a third party may result in an additional recovery, the company said, without providing further details.

The port company said it had used its insurance money to repay its debt in February. It had $30.57 million of debt in 2013.

Lyttelton Port's underlying earnings, excluding the earthquake payments, were flat at $15.1 million, the lower end of its forecast range of $15 million to $16 million, as expenses rose faster than sales. Revenue rose 4.7 percent to $115.8 million, the company said. Employee expenses jumped 11.6 percent to $47.3 million, while the cost of materials and consumables utilised increased 12 percent to $28.8 million.

In the latest year, total container volumes rose 7.2 percent to a record 376,567 twenty-foot equivalent units as the port benefited from increased dairy exports, imports for the Christchurch rebuild and the continuing strength of the Canterbury economy, the company said. Dry bulk imports rose 18 percent to a record 769,019 tonnes, reflecting increased demand for fertiliser, grain and cement. Log exports rose 63 percent to a record 601,485 tonnes, largely as a result of trees felled by storms in October last year. The number of ship visits rose 14 percent.

The port company's board will hold a special meeting on Monday to consider a takeover offer from its majority owner, Christchurch City Holdings, the city's infrastructure investment arm. It expects to make a recommendation to shareholders following the meeting, and will also decide whether to authorise dividend payments which are a condition of the takeover offer, it said.

Christchurch City Holdings, which already owns 79.6 percent of the port company, earlier this month said it had agreed to buy Port Otago's 15.5 percent holding which would comfortably take it above the 90 percent threshold to compulsorily acquire the rest of the shares. It will offer $3.95 a share for remaining stock in the port company, valuing the business at about $404 million. As part of the agreement, Lyttlelton Port would pay a special dividend of 20 cents to existing shareholders, using any imputation credits to pay the tax.

Shares in Lyttelton slid 0.7 percent to $4.11.

(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