NZ's Port of Tauranga lifts 2010 profit guidance
Port of Tauranga today announced an upgrade in earnings guidance for the year ending 30 June 2010.
Chief Executive Mark Cairns said, "As a result of the strong increase in volumes, particularly over the last quarter, we now anticipate our normalised Net Profit After Tax (NPAT) will be in the range of $49 - $50 million for the year ended 30 June 2010.
This compares favourably with our previous guidance of a full year result similar to last year's result ($45.2 million) and current analysts' consensus of $47 million." The full year profit will however be affected by the Government's recent Budget announcement and subsequent legislation change to reduce the tax depreciation rate on buildings to zero per cent.
This will produce a one off non cash adjustment to income tax payable of approximately $11 million.
There will be no change to the actual tax payable until the 2011/2012 income year, with the additional tax payable due to the tax depreciation estimated to be approximately $0.4 million per annum. This increase in tax will be more than offset by the company tax rate reduction to 28% in 2011/12 which will reduce tax payable by approximately $1.5 million per annum.
Chief Executive Mark Cairns said, "As a result of the strong increase in volumes, particularly over the last quarter, we now anticipate our normalised Net Profit After Tax (NPAT) will be in the range of $49 - $50 million for the year ended 30 June 2010.
This compares favourably with our previous guidance of a full year result similar to last year's result ($45.2 million) and current analysts' consensus of $47 million." The full year profit will however be affected by the Government's recent Budget announcement and subsequent legislation change to reduce the tax depreciation rate on buildings to zero per cent.
This will produce a one off non cash adjustment to income tax payable of approximately $11 million.
There will be no change to the actual tax payable until the 2011/2012 income year, with the additional tax payable due to the tax depreciation estimated to be approximately $0.4 million per annum. This increase in tax will be more than offset by the company tax rate reduction to 28% in 2011/12 which will reduce tax payable by approximately $1.5 million per annum.