Port of Portland
| AIX interest in Port of Portland: | 50.0% |
| UTA interest through Port of Portland Holdings: | 50.0% |
Port of Portland (the Port) is a bulk seaport located in Portland in south-western Victoria. The Port handles diversified bulk commodities, including aluminium, grain, forestry products, fertiliser, livestock and mineral sands.
Performance highlights 2009
The Port recorded revenue of $21.8 million and normalised EBITDA(1) of $10.5 million for the year, representing decreases of 7.4 percent and 6.9 percent respectively on the previous financial year. During the March 2009 quarter, the Port's trade volumes were affected by softer international demand, particularly across its mineral sands, forestry
and fertiliser customers.
The Port's interest cover ratio came under pressure during March, primarily due to previously incurred capital expenditure and the payment of a one-off legal settlement, but also due to weaker trade volumes over that quarter. To ensure the Port continued to comply with its banking covenants, the shareholders elected to contribute $4 million of equity to the Port. The Port is committed to refinancing its existing debt facility by 30 September 2009.
A review of the Port's forecast financial model resulted in a number of changes which positively affected the Port's valuation as at 30 June 2009.
Performance outlook
After an extensive evaluation process, the Port announced on 30 July 2009 that Gunns Limited had been identified as the preferred provider of the new hardwood chip facility, with construction anticipated to commence before the end of 2009. Under the proposed arrangements, Gunns will fund and operate the new facility.
The Green Triangle region was recognised by Infrastructure Australia as nationally significant when it released its National Infrastructure Priorities in May 2009. The identification of the Green Triangle road and rail upgrades as a Priority Infrastructure Pipeline project is a positive development for both the region and the Port of Portland.
Port of Portland
Financial and operational performance
| 30 June year end | 2005 | 2006 | 2007 | 2008 | 2009 | CAGR* 05/09 |
| Throughput (tonnes m) | 3.6 | 3.5 | 3 | 3.3 | 2.9 | -5.5% |
| Revenue ($m) | 14.1 | 16.6 | 17.6 | 23.6 | 21.8 | 11.5% |
| EBITDA ($m) | 6.1 | 8.2 | 8.9 | 11.2 | 10.5 | 14.5% |
* CAGR: Compound Annual Growth Rate
(1) EBITDA normalised to remove non-cash one-off AIFRS based adjustments of $2.9 million due to the creation of a provision for sand bypassing and the write-off of project costs associated with the hardwood chip project that have no future economic benefit.
(2) Normalised EBITDA.
For more information please visit the Pot of Portland website