21 Feb 2014

Port of Tauranga's profit drops

12:06 pm on 21 February 2014

A one-off profit from selling a business a year ago has resulted in Port of Tauranga's first-half net profit falling 47 percent.

A container ship and cranes at Port of Tauranga.

A container ship and cranes at Port of Tauranga. Photo: PHOTO NZ

The country's largest port says excluding that sale, the latest result is flat, although operating earnings are up 5.5 percent.

Port of Tauranga's net profit for the six months to December fell to $39.3 million from $74.2 million in the same six months a year earlier.

That compares with the $26.4 million first-half profit its arch-rival, Ports of Auckland, reported earlier this week.

Chairman David Pilkington says the port's overall trade increased nearly 6 percent to nearly 10 million tonnes.

Mr Pilkington says the company is well-placed to grow through its purchase of half of PrimePort Timaru and the development of a freight hub in Rolleston south of Christchurch - and the improving economy will drive increasing cargo volumes.

He says the company expects to report a full-year profit of $77-$81 million in the absence of any significant market changes.