Centre Port in the red after quake
CentrePort in $2.3m loss as firm recovers
CentrePort, the Wellington port operator, turned to an annual loss after damage from November’s Kaikoura earthquake last year weighed on its business. The port company posted a loss of $2.3 million in the 12 months ended June 30, from a profit of $11.6m a year earlier, it said. The year-earlier earnings were restated because of a change in the accounting treatment of convertible notes. Underlying profit before earthquake-related income, fair value adjustments and tax slipped 32 per cent to $10.8m.
CentrePort was forced to suspend operations after the November 14 earthquake last year as it dealt with damage to its buildings and liquefaction and it was forced to modify its services to get them up and running. In the past year, the port has received $173m of insurance income which helped fund a $28m temporary works programme to secure 125m of the 585m wharf.
That enabled its two ship-to-shore cranes to resume operations last month. One hundred and eighty piles were driven an average of 40m into the soil, and 644 gravel columns were embedded to reduce liquefaction from future earthquakes.
Speaking in one of the port’s dozen or so temporary office buildings in its ‘portacom village’, chief executive Derek Nind said the past year had been “like a rollercoaster” as the company got the business back up and running, set about assessing the damage from the quake, and worked out whether assets should be demolished or repaired.
The company is expecting further insurance income in the future as engineers and insurers complete their deliberations. It estimates total material damage claims to total $350m for the port and more than $106m for commercial properties. It increased the provision for write-downs in the value of its commercial properties to $32m, from $20.4m in its first-half accounts.
The port has told its shareholders, the Wellington and ManawatuWanganui regional councils, that it is unlikely to pay a dividend for three years following the quake.
In the latest year, its operating revenue fell 16 per cent to $63.7m, not including $9m in business interruption insurance.
Operating expenses were little changed at $60m.
CentrePort said it is now focusing on its long-term plan as it reassesses its strategy after the earthquake and subsequent damage. —