Lyttelton Port of Christchurch's (LPC) annual net profit has fallen 7.9 per cent to $9.64 million in a challenging environment, with the listed port picking a lower profit for the 2008 year.
LPC chief executive Peter Davie said the 2007 result, which complied with new international accounting rules compared to a $10.46m net profit in the year to June 30, 2006.
"We recorded a significant increase in container volumes, up 9.4% on the previous year," Davie said. "However, this was more than offset by the impact of higher depreciation, maintenance and interest costs relating to capital expenditure."
In the year to June 2008 the company expected further growth in container volumes, but with other trade expected to remain steady.
"The full year's net profit projection is approximately $8.5m with solid Ebitda (earnings before interest, tax, depreciation and amortisation) growth, but increasing interest and depreciation costs."
A final 2.7c dividend cuts the annual rate from 5c to a fully imputed 4c. The gross dividend of 5.97c, gives a yield of 2.6%, based on yesterday's closing share price of an unchanged 230c.
Annual turnover fell 3.6% to $76.4m, despite the increase in container volumes to 228,284 20-foot equivalent container units.
During the June 2006 year transport and international divisions of LPC's inland CityDepot were sold. Then in 2007 the warehouse division was sold, Davie said. "If revenue from these three divisions is excluded from both years then revenue for 2007 was $74.6m, up 4.8% from $71.2m in 2006.
"The container growth was due to strong organic growth from existing customers, the benefit of the new Maersk service to the Pacific Islands for a few months, plus the addition of the new service from shipping line CMA CGM."
Coal exports fell to 2.17m tonnes from 2.5m tonnes. Ebitda (or trading profit) fell to $26.9m, from $28.1m. Earnings per share eased from 10.2c to 9.4c.
LPC chief executive Peter Davie said the 2007 result, which complied with new international accounting rules compared to a $10.46m net profit in the year to June 30, 2006.
"We recorded a significant increase in container volumes, up 9.4% on the previous year," Davie said. "However, this was more than offset by the impact of higher depreciation, maintenance and interest costs relating to capital expenditure."
In the year to June 2008 the company expected further growth in container volumes, but with other trade expected to remain steady.
"The full year's net profit projection is approximately $8.5m with solid Ebitda (earnings before interest, tax, depreciation and amortisation) growth, but increasing interest and depreciation costs."
A final 2.7c dividend cuts the annual rate from 5c to a fully imputed 4c. The gross dividend of 5.97c, gives a yield of 2.6%, based on yesterday's closing share price of an unchanged 230c.
Annual turnover fell 3.6% to $76.4m, despite the increase in container volumes to 228,284 20-foot equivalent container units.
During the June 2006 year transport and international divisions of LPC's inland CityDepot were sold. Then in 2007 the warehouse division was sold, Davie said. "If revenue from these three divisions is excluded from both years then revenue for 2007 was $74.6m, up 4.8% from $71.2m in 2006.
"The container growth was due to strong organic growth from existing customers, the benefit of the new Maersk service to the Pacific Islands for a few months, plus the addition of the new service from shipping line CMA CGM."
Coal exports fell to 2.17m tonnes from 2.5m tonnes. Ebitda (or trading profit) fell to $26.9m, from $28.1m. Earnings per share eased from 10.2c to 9.4c.