For the six months to December 2007, Port Otago made a large but unrealised gain in property revaluations (if they were sold) through its subsidiary Chalmers Property, which boosted profit to $18.9 million, but this year it was down to $5.4 million.
However, Port Otago's operating profit before tax for the six-month period in 2007 was $4.5 million, and without the unrealised gain, that profit rose 22% for the period to last December to $5.4 million.
Port Otago chairman John Gilks said Chalmers Properties recorded a profit, including unrealised revaluations, of $3.6 million for the period; down from the $16.2 million profit from the same time last year.
"The lower property revaluation was the principal reason for the reduced profit result," Mr Gilks said.
The $2.5 million dividend to the ORC brings the total to $56.5 million in dividends since 1988.
Port Otago's operating revenue was up 12% to $31.6 million and its earnings before interests, tax, depreciation and amortisation was up 10% to $12.5 million.
Container handling for the period was up 10.6% from 89,100 to 98,600, cargo volumes increased 7.2% from 483,000 tonnes to 518,000.
Vessels handled increased 4.7% from 253 to 265, with fewer fishing boats but an increase in container and cruise ships.
Mr Gilks cautioned that exporters had boosted container numbers by packing logs and scrap metal in containers and with a decline in the cost of chartering vessels globally they would now "reconsider the economies" of bulk shipping.
As with financial reports spanning the past two years, Mr Gilks took a moderate and cautionary line with Port Otago's overall outlook, highlighting the uncertainty which lay ahead because of the global economic downturn.
"Few would have predicted the extent of the recent volatility in exchange rates, fuel and commodity prices," he said.
However, he noted Port Otago maintained a "strong balance sheet" and "strong financial position" and capital expenditure was decreasing.
Banking arrangements in the present credit-crunch era, with lending tight and at high rates, have caught out many companies.
However, Mr Gilks said Port Otago had "confirmed term banking arrangements" in place.
The same assurance was given to the ORC in September last year in the wake of the unravelling US financial crisis and credit crunch concerns.
On the issue of Port Otago's stake in Lyttelton Port of Christchurch and subsequent decision to consider amalgamation, Mr Gilks only said there was a "robust process" in place to consider how the companies could work together "in the interests of all stakeholders".
