Port Otago will reap $775,000 in its full-year dividend from Lyttelton Port of Christchurch for its 15.8% stake in the company.
Along with the company result, Lyttelton has indicated that a decision on a proposed merger with Port Otago, announced last year, may be close at hand.
Since Port Otago took its stake in Lyttelton, the two companies have been considering a merged entity but have given few details on whether this will still go ahead.
However, Lyttelton chairman Rodger Fisher said yesterday the proposed amalgamation was one of several key areas for the company during the year.
It was seen as crucial for the long-term viability of New Zealand ports.
This had taken longer than expected but good progress has been made.
A final report was expected soon from independent adviser Antipodes, which would then be considered by the respective boards, Mr Fisher said.
As Lyttelton is a listed company, Port Otago has declined to comment in the past on details, which must be released to the markets through the stock exchange.
Lyttelton produced a $10.05 million profit for the year to June, in line with expectations, and booked a 3.7% increase on last year's container handling, up from 250,657 to 259,933 containers.
ABN Amro Craigs broker Peter McIntyre said the result was well received by the marketplace and Lyttelton shares had remained steady at around $2.35.
"Given the recessionary phase we are in, it is a good result . . . and Lyttelton is being prudent with its dividend and retaining some cash," Mr McIntyre said.
The Port Otago dividend last year was 5.1c a share and produced $807,000, while this year it was 4.9c a share for the $775,400 - a yield on investment of 3.3% for Port Otago, Mr McIntyre said.
Lyttelton's directors said in a statement that while 2009 was a challenging year the highlights had been the increases in both export and import container volumes.
However, the 9.5 million tonnes of cargo shifted across the wharves was down slightly on the 9.8 million tonnes of the previous year.
Earnings before interest, tax, depreciation and amortisation were $29.3 million, a 5.0% drop on last year's $30.9 million.
