Container trade was slightly down for the half-year to December, but log handling, cruise and commercial ship visits and conventional cargo were generally up for the period.
While the ORC can revel in having received $53.6 million in dividends during the past five and a-half years from Port Otago, the port company has some particularly expensive infrastructure upgrades coming up, which could be a drag on cash in hand, although new debt from loans is readily at hand, if required.
Revenue rose from $36.2 million to $30 million. While the after-tax profit for the period rose hugely, from $5.74 million a year ago to $22.03 million, but the bulk of it was a one-off gain of $13.8 million profit from the sale of Lyttelton Port of Christchurch (LPC) shares, with the balance of $8.6 million credited to normal operating profit.
After delivering the ORC's $3.5 million dividend, Port Otago chairman Dave Faulkner forecast there would be a slight increase on last year's, ordinary, full-year $7.1 million dividend, to $7.2 million.
After the meeting, he ruled out any likelihood of a further ''special'' dividend, as had been paid in the three years up to 2013.
To the full ORC meeting yesterday, Mr Faulkner described the six months trading as ''solid'' and the full-year forecast ''positive'', highlighting diversity in port operations alongside property developments, rentals and sales through subsidiary Chalmers Property.
''We're well-positioned to make more investments in port infrastructure, as and when it comes up,'' Mr Faulkner said.
Port Otago used the bulk of the LPC share sale to pay off debt, which fell from $120 million to $52 million, and has drawn down almost 50% of $100 million in bank debt facilities, while retaining cash in hand of more than $12 million.
Port Otago's Chalmers Property had severed ties with its joint venture partner in a Hamilton industrial development, each taking about 50% of the development, each stake conveniently on either side of an arterial road.
After valuations, Port Otago paid a ''slightly higher'' share of the outstanding debt, Mr Faulkner said after the meeting.
He said of the 12 stage 1, 6ha blocks on offer, there had been three sales, for $6.2 million, and a further two blocks were under offer at $2.6 million.
''This is not like residential sections, where 20 are sold overnight,'' he said.
He predicted Hamilton would be an ongoing development, of several stages, for up to eight years.
Cr Bryan Scott asked about Port Otago's future strategic investment plan.
Mr Faulkner replied while always looking at opportunities to invest, there was ''a chunk [of cash] to be spent at Port Otago first'', on infrastructure projects, such as channel deepening and wharf extensions, which all have consents.
ORC chairman Stephen Woodhead asked if the ''Kotahi deal'', between Fonterra and Port of Tauranga had had any negative effect in Timaru for Port Otago, which runs a train to South Canterbury to pick up containers.
Mr Faulkner said there had only been a ''very minor'' impact on container numbers, and the train service would continue, noting some customers still wanted their container ''boxes on boats tomorrow''.
Cr Trevor Kempton queried Port Otago's overall, future debt strategy, on using existing cashflows or increasing bank debt.
Mr Faulkner said those issues were being considered for a forthcoming 10-year forecast, but noted debt was relatively ''light'', and banks were offering loans.
''That's why we want Hamilton consented, to get a better cashflow out of that,'' Mr Faulkner said.
He described the final decision on the channel deepening project, which is being trialled by Port Otago's suction dredge New Era at present, as coming to ''crunch time''. Port Otago would either undertake most of the work, or bring in contractors.
When asked about further developments of sheds at Sawyers Bay, Mr Faulkner could only say that talks were ''ongoing'' with commercial parties.
