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

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news