Marsden Maritime annual profit slips on smaller property value gains

Marsden Maritime Holdings, which owns half of the Marsden Point-based Northport, reported a 17 percent drop in annual profit as it reaped smaller gains on the value of its investment properties and marina operations.

Net profit fell to $10.1 million, or 24.33 cents per share, in the 12 months ended June 30, from $12.1 million, or 29.2 cents, a year earlier, the Whangarei-based company said in a statement. That was largely due to the company reaping a $341,000 gain on the value of its assets, down from a gain of $3.2 million a year earlier. Marsden Maritime's investment property portfolio was valued at $66.4 million as at June 30.

Stripping out the unrealised movement, earnings rose 13 percent to $12 million as its share of Northport earnings was boosted by the maritime hub posting record annual cargo of 3.6 million tonnes, up 7.3 percent. Marsden Maritime's share of Northport's earnings rose to $9.2 million from $8.5 million a year earlier.

"The company's financial result featured an especially buoyant performance from our joint venture entity Northport Ltd where record annual cargo throughput was again achieved," chairman John Goulter said. "The company's property, marina and commercial interests also contributed positively to the improved overall trading result."

Marsden and Port of Tauranga each own 50 percent of Northport, and Marsden also owns 100 percent of Marsden Cove and Marina. The company itself is about 54 percent owned by Northland Regional Council and 19.9 percent by Ports of Auckland.

The board declared a fully imputed final dividend of 8.75 cents per share, payable on Sept. 15. That takes the annual return to 15 cents, up 13 percent from a year earlier.

The company's property holdings generated annual trading earnings of $1.2 million on revenue of $2.1 million, compared to earnings of $832,000 on revenue of $1.6 million. The marina and commercial unit posted a surplus of $518,000 on sales of $2.1 million, up from earnings of $384,000 on revenue of $1.8 million.

Marsden Maritime is looking to sell its farming operations on land adjacent to its operations and valued the assets at $4.3 million after sale costs on its books.

The shares were unchanged at $4.90 and have jumped 36 percent so far this year.

(BusinessDesk)