Debt Lower, OPEX Surplus Up for Auckland Council

Financials continue to be strong

 

From the Mayor of the Office Len Brown

Mayor welcomes strong financial results 

Auckland Mayor Len Brown has welcomed strong financial results published by Auckland Council Group, Auckland International Airport Limited and Ports of Auckland Limited.

“The results highlight solid financial performance across the group and in companies in which ratepayers have a significant shareholding,” he says.

“The airport and port company results reinforce the wisdom of the council retaining its shareholdings in two strategic assets which give ratepayers extremely good dividends and that clearly outweighs any perceived benefit of selling them.”

Auckland Council Group’s unaudited 2015-2016 financial results to the NZX show revenue of $3,705 million, $147 million ahead of the prior year and operating surplus before gains and losses of $250 million, against a prior-year surplus of $80 million. 

Total net group debt (after cash on hand) was $7,483 million, $324 million lower than forecast and total assets amounted to $44.7 billion, an increase of $2.5 billion from the prior year.

In the past year, the group invested $1.4 billion in a broad variety of projects and activities including the start of work on the City Rail Link while maintaining our credit ratings of AA (stable) from Standard and Poor’s and Aa2 from Moody’s Investor Services, among the strongest in New Zealand.

Meanwhile, Auckland International Airport Limited’s financial results for the 12 months to 30 June reported total profit after tax up 17.4 per cent to $262.4 million and underlying profit up 20.6 per cent to 212.7 million contributing towards a total dividend for the financial year of 17.5 cents per share, up 19.9 per cent.

Ports of Auckland Limited, in its 2015-16 financial results, reported net profit after tax of $84 million, up $21 million on the previous year, underlying profit before tax of $70.6 million, up $1 million, with a declared dividend of $54.3 million, up from $41.7 million.

Auckland Council Group through Auckland Council Investments Limited owns 22.4 per cent of the airport company and 100 per cent of the port company.

“The council group’s prudent financial management means Auckland is in good shape to deal with many of the challenges we continue to face and we are making significant progress towards making Auckland the world’s most liveable city,” says Len Brown.

—ends—

 

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