Higher container volumes and lower maintenance costs have helped the Lyttelton Port Company report a 16% improvement in its interim net profit after tax.
The company, 15.47% owned by Port Otago, last night reported a net profit after tax (Npat) of $5.66 million compared with $4.87 million for the previous corresponding period, on revenue of $43.1 million, 6.1% higher than the pcp.
Earnings before interest, tax, depreciation and amortisation were $16 million, an increase of 8.6%.
During the six months under review, the company handled 133,400 containers, 5.7% more than the previous corresponding period , and higher volumes of coal and bulk fuel.
Chief executive Peter Davie said this reflected the strong import season and the addition of new Maersk and Pacifica shipping services, but ship visits overall were back 2.2% at 582.
There were some warnings though.
Coal volumes rose 12.2% for the period, from 844,000 tonnes to 947,000 tonnes, but Mr Davie expected total volumes for the year to be lower than last year, while the volume of export fish and logs and imports of motor vehicles would also be lower.
Fuel and dry bulk imports were similar to last year and he expected them to remain so for the full year.
He said it was difficult to get a projection for the rest of the year, but he was cautiously optimistic and the company was forecasting a Npat of $10 million.
Lyttelton Port Company and Port Otago have signed a memorandum of understanding to consider a merger, but yesterday Mr Davie declined to elaborate further.
Other highlights were the upgrading of the oil berth, consent for capital dredging and the potential expansion of the coal stockyard.
Chairman Rodger Fisher said there was some uncertainty about the remainder of the year given the economic conditions, but so far the South Island was showing some resilience.
"We are fortunate to hold an almost equal import-export balance, buffering us from extreme decreases in either sector."
Mr Davie agreed, saying research showed the South Island was doing well and volumes through the port were stable.
Shareholder's equity was down slightly at 56% compared with 56.5% in the pcp and earnings per share rose from 4.8c to 5.5c.
