CentrePort counts cost of earthquake
Wellington's port operator has returned an annual loss, largely due to November's earthquake.
12 October 2017
CentrePort is still counting the cost from November's Kaikoura earthquake.
The Wellington port operator 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 in a statement on Thursday.
Underlying profit before earthquake-related income, fair value adjustments and tax slipped 32 per cent to $10.8m.
CentrePort was forced to suspend operations immediately following the November 14 earthquake 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 125 metres of the 585-metre wharf. That enabled its two ship-to-shore cranes to resume operations last month.
Some 185 piles were driven an average of 40 metres into the soil, and 644 gravel columns were embedded in the ground to reduce liquefaction from future earthquakes.
Chief executive Derek Nind says 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 estimates total material damage claims to total $350m for the port and more than $106m for commercial properties.
The port has told its shareholders, the Wellington and Manawatu-Wanganui regional councils, that it's 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.
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