CentrePort invests in regeneration of Port

Press Release – CentrePort

CentrePorts underlying profit before earthquake-related income, fair value adjustments and tax was $10.8 million for the 2016/17 financial year, up from $5.4 million for the six months ending 31 December 2016.12 OCTOBER, 2017
CentrePort invests in regeneration of Port

CentrePort’s underlying profit before earthquake-related income, fair value adjustments and tax was $10.8 million for the 2016/17 financial year, up from $5.4 million for the six months ending 31 December 2016.

The Port’s revenue for the year ended 30 June 2017 was $63.7 million. This is down on the $76.2 million for the previous year, but does not include $9.0 million in business interruption insurance income received following last November’s Kaikoura earthquake.

This performance was driven by strong growth in vehicles, cruise, fuel and log trades, which are up on last year by 32%, 12%, 7% and 5% respectively.

Profit after tax from continuing operations was $51.7 million, but CentrePort decided it was necessary to make a provision of $63.0 million to invest in resilience over the coming years. When combined with a $9.0 million increase in the value of Port land this has resulted in the company posting a $2.3 million loss.

In the past year, CentrePort received $173 million in insurance income, which helped fund the $28 million temporary works programme to allow a reinstatement of its two ship-to-shore cranes, which are now operational. Insurance income is expected to rise further as engineers and insurers complete their deliberations. Total material damage claims are estimated to be $350 million for the Port and in excess of $106 million for commercial properties.

CentrePort has increased the provision for write downs in the value of commercial properties to $32.0 million, up from $20.4 million for the six months ending 31 December 2016.

Chairman Lachie Johnstone said the Board was pleased by the financial results and the progress the company had made to recover from last year’s earthquake.

“These results show us investing in the Port’s resilience. They also show strong underlying performance.”

Chief executive Derek Nind says CentrePort had decided to account for the impact of the earthquake sooner rather than later.

“Our financial statements shows us facing up to the damage we’ve sustained, and investing to build our resilience in the future.

“We’re also seeing the benefits of being well insured, and expect these benefits to continue.

“We’re now focussed on completing temporary recovery works, and formulating plans for the long-term regeneration of the Port.”

The results for the 12 months ended 30 June 2017 follow.

ends

Content Sourced from scoop.co.nz
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