Port of Rotterdam Authority posts results for 2012
The net result of the Port of Rotterdam Authority for 2012 was almost €228 million. Compared to the net result of 2011, this represents an increase of nearly € 33 million (+17%). This is a result of more lease income as well as additional port dues. The operating expenses dropped slightly due to effective cost control. Chief Financial Officer Paul Smits: ‘These figures imply we can continue to fully invest in our port area. This is very important for the mainport development in the long-term. At the same time it offers the opportunity to increase dividend to our shareholders. At the end of last year we had already agreed with the customers to reduce port dues to below the level of 2008. Hence everyone benefits by the positive development.’
The two most important sources of income for the Port Authority are the lease of sites and port dues. The rental income increased by €24.8 million (+9.3%) to €291.7 million driven by the issue of sites on Maasvlakte 2, price indexation of current contracts, and the renewal of a number of contracts at more competitive prices. The port dues increased by €1.9 million (+0.6%) to €307.3 million. The growth is lower than the increased throughput (+1.6%) driven by increased discounts on port dues in 2012. Considerable discounts are also applicable in 2013. The rates are currently below the 2008 level.
In total, operating income improved by 4.6% to €615.3 million, which is €27.2 million more than in 2011. The operating expenses decreased with €1.9 million, whereas the depreciation increased by €1.2 million. The total income from participations amounted to €7 million in 2012, especially due to the successful participations in the port of Sohar (Oman).
Investments
The financial position of the Port of Rotterdam Authority is developing positively. A solid financial position is important to achieve the significant investment ambitions for the Port of Rotterdam. In 2012 the investment level reached its highest level ever. A total of €625.7 million has been invested, of which €394.1 million related to Maasvlakte 2 and €231.6 million to the existing port area. It is unique that investments (€625.7 million) are higher than operating income (€615.3 million). In the next few years the total investment volume will be considerably lower as the construction of the first phase of Maasvlakte 2 has passed its peak.
Dividend
The Port of Rotterdam Authority proposed for 2012 a total dividend of €85.6 million to be paid to its shareholders, the Municipality of Rotterdam (70%) and the State (30%). The municipality will receive €60.6 million, while €25 million will be paid to the State. Last month the Port Authority announced the repayment of €290 million of the original State contribution to the construction of Maasvlakte 2. The favourable financial developments provide the opportunity to do so eight years earlier than was agreed in 2005.
Expectation
The Port of Rotterdam Authority is moderately positive about the development in 2013 and expects throughput growth of 1 to 2 percent. The net result for 2013 is expected to continue to develop positively due to slightly increasing income and a steady level of expenses.
Integrated Annual Report
The Port of Rotterdam Authority has been integrating its financial Annual Report and the CSR report since 2009, because corporate social responsibility is embedded in the company. 2012 is the third year in which Ernst & Young Accountants LLP issued an integrated auditor’s report for the Annual Report. The report was awarded A+ by Global Reporting Initiative, which stands for the highest level in transparent reporting. The Annual Report has no longer been printed since 2009 and is published only on the website www.portofrotterdam.com.