Port Otago has delivered its first special dividend to owner the Otago Regional Council, boosting its overall dividend by $2.5 million for the year from $6.9 million to a record $9.5 million.
Port company chairman John Gilks, delivering summarised full-year financial results to councillors yesterday, was put on the spot by Cr Michael Deaker.
Mr Gilks was asked if he was "comfortable or uncomfortable" if requested in the future to provide "special dividends" to assist funding ORC projects, such as the Awatea St stadium or harbourside development.
Mr Gilks said Port Otago had a "strong balance sheet", and said he was comfortable with a $500,000 special dividend compared to yesterday's $2.5 million, but said it was realistic that Port Otago raise funds to pay for special dividends.
Port Otago's property subsidiary Chalmers Properties could realise its property investments and sell some land, he said.
However, Mr Gilks said while Chalmers Property could sell assets, and it had provided solid results in the past, for the previous financial year its profit was down 21% or $8.5 million from $30.2 million to $21.7 million, which included after-tax gain of $1 million on property sales.
He said the property values of Chalmers Property were $7 million less than the previous year because of revaluations.
Chalmers Property's property in the short term was unlikely to continue to rise and "may even partially reverse".
Mr Gilks said after the meeting he would not rule out the possibility of any future special dividend, but said the ORC would have to consider its requirements alongside major capital expenditure proposed by Port Otago.
