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

 

CentrePort turns to annual loss following Kaikoura quake

CentrePort turns to annual loss following Kaikoura earthquake

By Tina Morrison

Oct. 12 (BusinessDesk) - CentrePort, the Wellington port operator, turned to an annual loss after damage from November's Kaikoura earthquake last year weighed on its business.

The port company posted a loss of $2.3 million in the 12 months ended June 30, from a profit of $11.6 million a year earlier, it said in a statement. The year-earlier earnings were restated due to a change in the accounting treatment of convertible notes. Underlying profit before earthquake-related income, fair value adjustments and tax slipped 32 percent to $10.8 million.

CentrePort was forced to suspend operations immediately following the Nov. 14 earthquake last year as it dealt with damage to its buildings and liquefaction and it was forced to modify its services to get them up and running. In the past year, the port has received $173 million of insurance income which helped fund a $28 million temporary works programme to secure 125 metres of the 585-metre wharf. That enabled its two ship-to-shore cranes to resume operations last month. Some 185 piles were driven an average of 40 metres into the soil, and 644 gravel columns were embedded in the ground to reduce liquefaction from future earthquakes.

Speaking in one of the port's dozen or so temporary office buildings in its 'portacom village', chief executive Derek Nind said the past year had been "like a rollercoaster" as the company got the business back up and running, set about assessing the damage from the quake, and worked out whether assets should be demolished or repaired.

The company is expecting further insurance income in the future as engineers and insurers complete their deliberations. It estimates total material damage claims to total $350 million for the port and more than $106 million for commercial properties. It increased the provision for write-downs in the value of its commercial properties to $32 million, from $20.4 million in its first-half accounts.

The port has told its shareholders, the Wellington and Manawatu-Wanganui regional councils, that it's unlikely to pay a dividend for three years following the quake.

In the latest year, its operating revenue fell 16 percent to $63.7 million, not including $9 million in business interruption insurance. Operating expenses were little changed at $60 million.

CentrePort said it is now focussing on its long-term plan as it reassesses its strategy following the earthquake and subsequent damage.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>