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

 

Lyttelton Port has no ‘clear view’ on earthquake claim bill

Lyttelton Port has no ‘clear view’ on earthquake claim bill

By Paul McBeth

Dec. 3 (BusinessDesk) – Lyttelton Port Co., South Island’s biggest port, has no clear view on the value of its claim for damages from September’s 7.1 magnitude earthquake.

Chief executive Peter Davie said the damage to the port was “extensive” and it is working closely with insurers to assess the cost and figure out the next steps. He downplayed media reports that the media the bill could be between $50 million and $200 million.

“The company wishes to advise that it does not have a clear view at present on the value of the claim,” Davie said in a statement. “Due to accounting requirements in the recognition and timing of insurance proceeds and the related expenditure, the impact on the profit is extremely difficult to forecast at this time.”

The earthquake scuppered a proposed merger with Port of Otago, as the Lyttelton operator was forced to focus on repairs. It could be several years before the foundation earth, which is reclaimed land, settles down from its agitated state.

Davie has previously said he expected the insurance bill to be more than $50 million.

The company has had a “very strong start to the year” with both profit and revenue in the first five months “significantly ahead” of the same period a year ago, he said.

The port forecast underlying earnings of at least $10 million in the 2011 financial year.

The shares were unchanged at $2.25 and have dropped 6.3% this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>