Ports of Auckland's owner is slashing the carrying value of the port company by $92.1 million, or 16 per cent, blaming tough economic times and competition.
Auckland Regional Holdings, Ports of Auckland's parent company, is cutting its book value for the port operator to $495.7 million from $587.8 million. Auckland Regional Holdings itself is controlled by the Auckland Regional Council.
Peter Casey, Auckland Regional Holdings' chief operating officer, told Businessday.co.nz the lower valuation was due to "a whole range of factors." These included a worsening economic outlook and competition.
"Ports are a good barometer of economic activity and [in] a very competitive sector," Casey said.
For the June year Ports of Auckland posted a $21.1 million annual profit down from $64.6 million last year. In contrast rival Port of Tauranga posted double that, with net profit for the June year of $42.1 million, up $2.8 million.
Nonetheless in August Ports of Auckland managing director Jens Madsen said his company wanted to buy Port of Tauranga's container business.
Auckland Regional Holdings, Ports of Auckland's parent company, is cutting its book value for the port operator to $495.7 million from $587.8 million. Auckland Regional Holdings itself is controlled by the Auckland Regional Council.
Peter Casey, Auckland Regional Holdings' chief operating officer, told Businessday.co.nz the lower valuation was due to "a whole range of factors." These included a worsening economic outlook and competition.
"Ports are a good barometer of economic activity and [in] a very competitive sector," Casey said.
For the June year Ports of Auckland posted a $21.1 million annual profit down from $64.6 million last year. In contrast rival Port of Tauranga posted double that, with net profit for the June year of $42.1 million, up $2.8 million.
Nonetheless in August Ports of Auckland managing director Jens Madsen said his company wanted to buy Port of Tauranga's container business.