Port of Tauranga predicts profit slide

Port of Tauranga has reduced its full-year profit guidance due to an uncertain outlook in the second half of the financial year, pinpointing the potential impacts of coronavirus.

The port company announced its half-year results to the NZX yesterday and said the second half of the 2020 financial year was dependent on the duration of the market shutdown in China ‘‘and any slowdown in the other countries taking extreme measures to manage the coronavirus risk’’. Profit guidance was previously $96 million to $101m but it is now $94m to $99m.

Total cargo volumes for the first six months of the financial year dropped 4.2 per cent, to just under 13.3 million tonnes.

‘‘Port of Tauranga continues to be well-positioned to weather market fluctuations, as its customers are primarily large forest owners who are less susceptible to commodity pricing volatility than smaller, at-wharf-gate log exporters.’’

Group net profit after tax was $48.3m.

Imports decreased 6.7 per cent to nearly 4.7 million tonnes while exports decreased 2.6 per cent to 8.6 million tonnes.

Port of Tauranga chairman David Pilkington said the mid-year results represented a solid financial performance.

‘‘Total trade was down 4.2 per cent but we managed to increase revenue 1.2 per cent to $154.8m for the six months,’’ Pilkington said,

‘‘The longer-term outlook remains for cargo growth, particularly in containerised cargo, so our next stage of capacity expansion is already under way.’’