Port Nelson Annual Report 2007 (pdf)

P E R F O R M A N C E R E V I E W - P O R T N E L S O N L T D G R O U P
2007 2006 2005 2004 2003
2007 2006 2005 2004 2003
Operations
Financial ($ Millions) ...continued
Trade (Millions of Cargo Tonnes) 2.644 2.522 2.623 2.564 2.458
Container Throughput (TEU’s)* 71,815 61,455 57,144 51,128 44,632
Dividends Declared (Millions) $3.9 $5.3 $3.3 $9.2 $3.1
Vessel Arrivals (Over 100GT) 997 1,012 1,178 1,267 1,470 Capital Expenditure $4.0 $2.9 $7.3 $3.2 $2.9
Total Vessel GT Calling (Millions) 9.0 8.6 8.4 9.2 9.7 Net Interest Bearing Debt $42.0 $16.5 $19.0 $16.5 $15.0
Employees (FTE’s) 132 141 143 125 121 Total Tangible Assets $152.3 $149.6 $117.2 $114.2 $113.7
Financial ($ Millions)
Shareholder Return Metrics
Revenue** $33.0 $29.6 $27.7 $27.6 $25.4
Earnings per Share (cents) 26.5 22.1 17.0 21.3 18.0
EBITDA *** $15.8 $15.3 $12.2 $13.8 $12.5
Earnings Before Interest
Dividend per Share(cents) 15.3 17.1 11.0 30.0 10.3
and Taxation (EBIT) $12.2 $11.6 $9.0 $10.6 $9.6 Net Assets per Share $4.31 $4.14 $3.15 $3.12 $3.18
Net Interest Expense $2.5 $1.5 $1.3 $1.0 $1.3 Equity (%) 67.9% 82.1% 80.6% 81.2% 82.0%
Taxation $3.0 $3.1 $2.5 $2.9 $2.7 Return on Average Equity (%) 5.6% 6.1% 5.4% 6.6% 6.0%
Net Surplus After Taxation**** $6.7 $6.9 $5.2 $6.6 $5.6 Return on Average Assets (%) 7.7% 8.3% 7.5% 8.9% 8.4%
F I N A N C I A L O U T T U R N A N D D I V I D E N D
The net surplus after taxation, including unrealised investment
property gains, resulted in a return on average shareholders funds
of approximately 5.6%. Dividends declared for the year will be
$3.9 million.
As was reported in late October of 2006, the Board of Port Nelson
Limited recommended proceeding with a share buy back which saw
a payment of $25 million being split between the two shareholders,
Nelson City Council and Tasman District Council.
This came as a result of a detailed review of the capital structure of
the company, with the focus being to achieve a structure more in line
with the port sector in general and to establish a level of shareholders’
funds that was more appropriate to the nature of the risks associated
with the port’s business.
As was mentioned in the 2006 Annual Report, the continued
rationalisation within the shipping industry remains a challenge for us,
as it is for many New Zealand ports. This was highlighted in the second
half of the financial year with the withdrawal of the Maersk Asian (NZ1)
service from Port Nelson.
We continue to make all efforts to ensure Nelson remains an attractive
port of call for overseas shipping lines but are also realistic, that as vessels
get larger there are likely to be further changes to existing services,
particularly for the smaller regional operations such as ourselves.
I would like to thank the senior management and all staff for the
excellent efforts over the last 12 months.
Our Finance Manager Murray Win retired after a number of years with
Port Nelson and there were also changes in directors’ positions during
the year.
Murray Sturgeon and Bob Dickinson, both long serving directors,
resigned during the latter half of 2006 and we thank them for the huge
contribution they have made to Port Nelson Limited over many years.
They have been replaced by Bronwyn Monopoli and Tim King and we
look forward to their contributions to the growth of the business in
coming years.
To the shareholders and fellow directors I thank you for your support
and commitment over the past year.
Nick Patterson
Chairman , Port Nelson Limited.
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