sign up log in
Want to go ad-free? Find out how, here.

Ports of Auckland has sailed into the red in the latest financial year thanks to its axed automated container terminal project

Business / news
Ports of Auckland has sailed into the red in the latest financial year thanks to its axed automated container terminal project
auck-port6

Auckland Council-owned Ports of Auckland has slumped to a $10.3 million loss for the year to June 30, 2022 thanks to the write-off on its failed automated container terminal project.

The port company has written-off $63.1 million after axing the troubled six-year automation project officially in June.

The $10.3 million loss for the year compares with a  $45.57 million profit a year ago.

The company said revenue increased to $265.3 million up 17.2% on 2021, while operating costs increased by 12.9%. The operating profit before tax, excluding impairments, revaluations and share in investments, was $27.4 million, an increase of 32.8% on 2021.

"The Company is committed to producing an adequate return on the capital investments made in infrastructure," the statement from Ports of Auckland said.

The Directors have declared a final dividend of 8.25 cents per share, to give a total dividend for the year of 9.7 cents per share (2021 - 2.55 cents). The return to the shareholder, Auckland Council, is $14.2 million for the year, an increase of 281% on the previous year's dividend.

The directors said this has been a year in which "we have started to rebuild the foundations for Ports of Auckland's future as a safe, customer-focused and profitable organisation".

The company had reset its strategic direction "and are very clear on our focus on core business and delivery".

"Our new strategy, Regaining our Mana, and the key pillars that support it are designed to lift our performance significantly, deliver a reasonable return to our owner, Auckland Council, and rebuild trust with Aucklanders. We will execute Regaining our Mana over the next three years."

While the financial results "reflect the challenges of FY22" and the decisions by the board to refocus the business, "there are green shoots in returns from operations".

"We recognise the importance of the port as the key gateway for New Zealand's imports and we have refocussed our strategy on our core cargo-handling, cruise and marine businesses.

"We are committed to lift the levels of service and performance of the port for our customers, our people and Auckland and as a result, of this improvement in performance and profitability to a net profit after tax, excluding investment property revaluations, of $35 million for FY23," the company said.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

3 Comments

Another poorly managed and governed infrastructure asset, the case for co-governance is overwhelming.

https://www.poal.co.nz/our-story/people/board

Up
0

Are you joking? Hard to tell.  Because if what you're saying is that some Maori board members would have resulted in anything different, you'd be dreaming.

Up
0

Tauranga is smashing them...lol

Up
0