POT - Port of Tauranga

[Ferg]

Today POT advised they have been granted resource consent to build an additional 285 metres of berthage.  I understand this has been in progress for some years.

https://www.nzx.com/announcements/423435

Port of Tauranga Limited this afternoon received an interim decision of the Environment Court granting resource consent for Stage 1 of its planned Sulphur Point wharf extension, subject to conditions. Stage 1 involves building 285 metres of additional berth to the south of the Port's existing container berths.

[lorraina]

Has been a disgrace.
An ongoing saga for years.

[Ferg]

POT is over $6 for the first time in 13 months.  This was good buying when the price started with a 4 in April/May/June:
https://nz.finance.yahoo.com/quote/POT.NZ/chart/

POT also announced their annual result for the year ended June last month:
 ~ second half container volumes improved +13.7% on H1, but this was not enough to prevent annual cargo tonnage falling -4.2% and annual container volumes falling -2.5%
 ~ Revenues of $417m down -0.8% on last year
 ~ NPAT was $91m which was down on last years $117m, but this included a one off $12m expense due to the change in tax deductions on building depreciation
 ~ Normalised profit for 2024 without the tax adjustment is $103m
https://www.port-tauranga.co.nz/news/port-of-tauranga-shows-resilience-amid-economic-and-supply-chain-challenges/

Priced at $6.15 this gives a backwards PE of 46, and a gross dividend yield of (14.7c/0.72 ÷ $6.10 = ) 3.3%, fully imputed.
https://www.nzx.com/instruments/POT/dividends

The share price appears expensive but the P/E ratio will come down slightly as volumes and profits normalise.  Total import + export trade for NZ for July & August 2024 is up +5% on last year.  POT should see their share of this increase so it should be a good start to the new fiscal year.
https://www.stats.govt.nz/topics/imports-and-exports

Assuming a revenue lift of 5%, NPAT of 27% gives EPS of 17.4c and a 1 year forward P/E ratio of 35.  Still expensive but DPS will revert to being less than EPS.

Evolution of EPS from 2016-2024 broken down into sales per share and NPAT % of sales:

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