Quakes, coal impact on Chch port profit
Friday 1 Mar 2013 6:51 a.m.
Christchurch city's Port of Lyttelton has posted a 16.5 percent reduction in profit for the half year to December 31, largely reflecting reduced coal export volumes and the loss of insurance cover for cancelled visits by cruise ships.
Profit after tax for the period was $8.0 million, compared with $9.5m in the same period last year, prior to adjustments for earthquake impacts.
Once those adjustments are taken into account, net profit was up 15.1 percent to $3.3m.
Full year net profit is expected to be between $13m and $15m for the full financial year, down from $17m last year, largely thanks to a projected $700,000 reduction in net earnings from Solid Energy coal shipments and the fact there will be no repeat of the $1m insurance payout for cruise liner cancellations.
The port and city were damaged in the Canterbury earthquakes, but the port had been receiving business interruption insurance payments to cover lost income from cruise liners skipping a layover in Lyttelton.
The result was earned on a 4.5 percent increase in revenue to $54.2m, with increasing dairy volumes and expanding facilities in the Christchurch region driving growth.
No dividend will be paid, in line with a policy to suspend distributions until all insurance matters stemming from quake damage are settled.
On that front, the company says "good progress is being made in all areas".