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


Success a burden for Port of Tauranga

Success a burden for Port of Tauranga

By Pam Graham

Aug. 23 (BusinessDesk) – Port of Tauranga handled fewer containers in the second half of its financial year compared to the previous year when industrial action plagued rival Ports of Auckland.

Analysts are also finding it hard to justify the premium the stock trades at even though it is regarded as a well-managed business with growth prospects.

Port of Tauranga’s shares were unchanged at $14.35 in afternoon trading, after falling 2.4 percent on Thursday when the port reported another record result.

Net profit of $112.1 million in the year ended June 30 was up 52 percent but First NZ Capital said the underlying profit was weaker than expected in the second half due to a lower contribution from the core port services business.

That’s caused the firm to lower its earnings forecasts for the port by $2 million in the 2014 and 2015 years.

Port of Tauranga remains a very well managed business and is strategically well positioned to capitalise on an industry shift towards the use of larger container vessels and trans-shipment of cargo through hubs, First NZ Capital said.

It cited a flow of freight back to Auckland and uncertainty about consolidation of ship calls at ports as risks.

“Because of Port of Tauranga’s long track-record of strong double-digit compounded earnings growth the stock has consistently traded at a premium to our underlying discounted cashflow valuation.

“We struggle to justify a rating other than underperform,” the brokerage said.

Port of Tauranga handled the equivalent of 135, 771 standard-sized containers in second quarter of calendar 2013, down from 146,753 in the same period a year ago, and it handled 129,596 in the first quarter, down from 139,653 the previous year, according to figures provided to the Ministry of Transport by ports.

Ports of Auckland staged a recovery from 86,299 in the first quarter of 2012 to 124,054 in 2013 and its second quarter levels also rose.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland: Quarterly Update: Rents Stable During Third Quarter

The average weekly rent for a home in Auckland moved less than $1 during the third quarter, ending 30 September at $606.25, according to data from more than 16,000 rental properties managed by Barfoot & Thompson... More>>

Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>

Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>

LAWA: New Zealand Lakes Are Diverse In Their Condition And Type

Freshwater scientists have come together through the Land, Air, Water Aotearoa (LAWA) project to summarise the condition of New Zealand’s monitored lakes. They have found a varied picture of lake condition... More>>

Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>

Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>