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


Port of Tauranga lauded for remarkable performance

Ports of Tauranga applauded for ‘remarkable’ performance during global downturn

By Peter Kerr

0ct. 20 (BusinessWire) - Port of Tauranga Ltd. has done a remarkable job of maintaining profitability against the tumultuous backdrop of the global economy said Morningstar research unit, AspectHuntley.

Shares of the port company edged up 0.7% to $7.25, nudging the $7.26 record it reached in mid-2007. The shares have climbed 49% from their low in March. AspectHuntley commenced coverage of the port company with a ‘hold’ rating, saying the stock is fairly priced given its rally.

Net profit rose 7.3% to $45 million, boosted by a lower corporate tax rate, while the company generated $27 million free cash last year. As the largest New Zealand port by trade volumes, POT's June 2009 revenues were $130 million, versus $138 million in 2008. Total trade for the year was down 5% to 13.5m tonnes, primarily blamed on imports being down 11% to 5m tonnes.

Most of this drop was due to a double digit decline in fertiliser imports, and a 6% fall in oil imports.

However, log exports grew 27%, with dairy exports up 24%, with bulk cargo accounting for 60% of trade, containers the rest. Logs make up 37% of POT's export volumes, and on the back of sustained Chinese demand port management is starting to plan infrastructure that can handle annual log volumes of over 5mt over the medium term.

The AspectHuntley report said POT's Metroport containerised cargo marshalling business in South Auckland is the fourth largest container terminal in NZ, accounting for 25% of POT's total containers handled.

A merger between POT and Ports of Auckland could make sense, though at this stage "on all metrics, whether it be profitability, balance sheet strength or return on capital, POT is far superior to POA," the report said.

"The advantage POT has over POA is that it is capable of handling larger ships with lower capital investment. POA would have to spend north of $200 million to have the same capabilities."

A merger could stop overinvestment in cranes and dredging. POA is mainly a container port with annual container volumes of over 800,000 twenty foot equivalent (TEU) movements a year.

POT handles bulk as well as container ships, and "the merged company will be able to extract significant cost savings," the report said.

"As one of Australasia's most productive and efficient ports, its strong balance sheet and sizeable land bank, POT is well placed to grow its container and bulk business," the report said.

"However, a high NZ$ and an uncertain global economic outlook might impact volumes in the near to medium future. At the right price the stock will suit long-term investors with a modest appetite for risk."


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>