Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Council Investments reports surplus, lifts dividend


Media release
13 September 2012

Council Investments reports surplus, lifts dividend to ratepayers

Auckland Council Investments Ltd, which owns and oversees two major equity investments on behalf of the region’s ratepayers, today announced its first full 12-month financial result, including a Group net surplus of $84.1 million, as its holding of airport company shares appreciated and its ports company traded profitably.

Auckland Council investment Ltd (ACIL) owns assets worth approximately $1.5 billion, comprising a 22.4 per cent holding in Auckland International Airport Ltd, as well as 100 per cent stakes in both Ports of Auckland Ltd (POAL) and Auckland Film Studios Ltd (AFSL). Shares in Auckland Airport gained 9.7 per cent in the 12 months ended June 30, while POAL made an after-tax profit of $29.1 million.

At the parent level, ACIL earned a net after-tax profit of $30.6 million, from $14.8 million in the previous eight months, which allowed it to return $30 million to Auckland Council for the benefit of ratepayers. This dividend was $3.2 million, or 11.9 per cent, higher than budgeted.

“This is a great result for both Auckland Council and for ratepayers and we look forward to producing still higher returns in future years,” said Gary Swift, ACIL’s chief executive. “ACIL’s role is to bring a strong commercial focus to bear on the ownership of these valuable strategic assets for the long-term benefit of the Auckland region. Our contributions help to make Auckland prosperous, well connected, accessible and full of opportunity.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The council-controlled organisation produced a total return on equity of 15.5 per cent, from 9.7 per cent annualised in the previous year.

Highlights include:

While POAL’s container business suffered from the economic downturn and industrial dispute, its overall business benefitted from the restocking of imported Japanese cars, after supply was disrupted due to the 2011 earthquake, and salvage services provided after the grounding of MV Rena on the Astrolabe Reef
POAL’s break bulk, or non-containerised, shipments also rose 10 per cent
POAL paid dividends of $17.5 million to ACIL in the 12 months
ACIL’s equity share of Auckland Airport’s surplus rose to $31.4 million from $13 million in the previous eight months
The airport company benefitted from a surge of arrivals for the Rugby World Cup 2011 and the diversion of some traffic away from quake-hit Christchurch
Auckland Airport paid dividends of $26.9 million to ACIL
AFSL, which became a subsidiary of ACIL during the period, reported an after-tax profit of $0.4 million in the 15 months to June 30, rebounding from a loss due to revaluation of property in the earlier 12-month period
The film studios were fully booked between October 2011 and April this year, for the filming of Emperor, a big-budget US feature film.


ACIL also manages a diversified financial assets portfolio on behalf of council, which returned 4 per cent for the 12 months ended 30 June, higher than the 3.46 per cent benchmark. Given the turmoil in global financial markets, particularly in Europe, during the period this is a very solid result, said Mr Swift.

ACIL aims to achieve still greater returns from the diversified financial assets portfolio in the months and years to come. It is now 69 per cent invested in growth assets, from 19 per cent in the year-earlier period.

Ends

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National Spreading Panic About The Economy


The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...
More


 
 


Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More


Labour: Grant Robertson To Retire From Parliament
Labour List MP and former Deputy Prime Minister and Minister of Finance Grant Robertson will retire from Parliament next month, and later in the year take up the position of Vice Chancellor of the University of Otago... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.