Port Otago delivered its year to June results to the council yesterday, outlining a "pleasing year", considering the loss of some shipping services, loss of transhipped Fonterra containers and global "volatility" in the shipping sector, chairman John Gilks said.
"While the number of calls is down, cargo carrying has been higher, helped by the increase in forestry," which was up 50%, he told the council.
Mr Gilks maintained his positive, but cautionary tone of the past more than two years, highlighting optimism had to be tempered by the continued uncertainty of global markets.
The combined group revenue of Port Otago and subsidiary Chalmers Property, was up from $67.2 million to $71.7 million and profit before a one-off deferred tax adjustment declined from $14.6 million to $14.3 million.
"The port has maintained a strong financial position ... capital expenditure was relatively low at $8.4 million, but we are up to date and don't see much change [in infrastructure spending] in the next two to three years," Mr Gilks told the full council meeting.
While Port Otago's after-tax profit declined from $14.6 million last year, by 47%, to $7.7 million, this was influenced by a one-off unrealised $6.6 million deferred tax adjustment from Government changes to building depreciation.
Transhipped container numbers were down 12% and ship calls, both container and cruise ships, were down 15% from 531 to 502 calls, but the number of containers across the wharf was up by 1000 to 219,000, through a mix of dairy produce and sawn timber and overall cargo was up from 963,000 tonnes to 1.1 million tonnes.
The $7 million dividend, eclipsed only by a combined normal and special dividend to the council in 2008, brings the total passed on to the council since 1988 to $69.9 million.
Port Otago received $775,00 in dividends from its 15.8% stake in Lyttelton Port of Christchurch.
Chalmers Properties' earnings before interest, tax, depreciation and amortisation increased 21% to $9.3 million, while its overall investment property portfolio increased by $3.2 million.
Mr Gilks said the $3.2 million was an "outstanding success" for Chalmers, given most companies in the property sector had been writing down the value of their portfolios.
During the year, Chalmers sold to the leasees 13 titles in Harrow St properties for $12 million, achieving a $1.2 million overall gain.
By value, 52% of its holdings are in Dunedin, 36% in Auckland and 12% in Hamilton.
