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Northland Port Corporation To Pay Special Dividend

Fuseworks Media
Fuseworks Media

Wellington, Sept 1 NZPA - The Northland Port Corporation is paying a special dividend of 12 cents per share following last month's settlement of a $5.5 million debt due by Sea-Tow.

Announcing its annual results today, the company said it would also be paying a final dividend this year of 5cps, fully imputed, down from 6cps last year. The total dividend for the year will be 8cps compared to 11cps in 2007.

The special dividend will not be imputed as insufficient imputation credits were available.

The company also said a further $6m, being the final cash proceeds from the sale of Marsden Cove waterways and marina project was due to become available next month.

Directors would consider how best to use those funds at that time, Northland Port said.

It announced a surplus of $10m for the year to the end of June, compared to $9.3m the previous year.

Chairman Mike Daniel said the main contributor to the latest surplus was the one-off gain of about $7.6m on the sale of the company's 50 percent interest in Marsden Cove.

It was difficult to compare the result with that of the previous year because of distortions caused by the inclusion in the previous year of $5m from the initial sales of Marsden Cove sections, and a $1m gain from the termination of a Northport Services joint venture with Carter Holt Harvey.

Excluding those items the Northport, North Port Coolstores and Northland Stevedoring Services joint ventures had performed well and in line with budget expectations, Mr Daniel said.

Cargo volume through 50 percent-owned Northport at 1.4m tonnes was slightly behind that budgeted for the latest year, but about 100,000 tonnes ahead of the previous year.

The company is soon to start the formal designation process for a proposed 16km rail link from Oakleigh to the Marsden Pt port, with applications being made to regional and district councils.

Discussions had continued with Ontrack during the year about the designation of the rail route and agreement had been reached on its location, Northland Port said.

Regarding the development of industrial land next to the port, discussions had continued during the past six months with interested parties, but changes in the market and other issues had delayed a satisfactory outcome.

Northland Port shares were up 12c by late morning to $2.96 a share, having ranged between $3.50 and $2.56 in the past year.

NZPA WGT mjd nb

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