port authority of new south wales performance report for the … · 2017. 9. 26. · performance...

Port Authority of New South Wales

Performance Report For the Half-year ended 31 December 2016

OF NEW SOUTH WALES

Performance Report for the Half-year ended 31 December 2016

TABLE OF CONTENTS

1 Financial Performance ............................ ...... ... ............. .... ............. .................. ..................... 3

1.1 Introduction .. ........................................ ................ ...... .. .. ..... ... .... .. .... .... .......................... ... ... 3

1.2 Total cash distributions to shareholder .......... ..... .. ...................................... ............... .. ......... 3

1.3 Summary of trade and financial results ...... .. ............ .. .......................................................... 4

1.4 Profitability .............................................. ... .. .. : .............. .. .... .. .. ........................................ .. ... 4

1.5 Capital Expenditure ........................................ .................... .. ..... ........................................... 5

1.6 Income Statement .......................... .. ..... ............ ..................... ...... .. .... .. ....... ... .. ... ................. 6

1.7 Balance Sheet ...................................................... .. ....................... ................... .. .............. .. .. 7

1 .8 Cash Flow Statement .... .. .. ................................................................................................... 8

1.9 Borrowings ...................... ........... ....................................... ..... ......... . .' ...................... ............. 8

1 .1 0 Financial Performance Indicators and Ratios .................... .. .. .. ............ .. ...... .... .................. .. . 9

1.11 Non-Financial Performance Indicators ....................... .. .. ........... .. ....................................... 10

2 Notes to Unaudited Financial Statements ............... ........... .......... .......................... ........... 11

2.1 Basis of Preparation ................................................ .... ........ .. .............. .. ...... .. .. .. .. .. ....... ...... 11

2.2 Unaudited Financial Statements .. ..... ..... .... .... .......................................... .. .......... .............. 11

~THORITY OF t~EW SOUTH WALES


1 Financial Performance 1.1 Introduction The Port Authority of New South Wales is responsible for all commercial marine functions in the ports of Newcastle, Sydney Harbour, Botany Bay, Port Kembla, Eden and Yamba. These functions include the provision of Harbour Masters to the ports, pilotage and navigation services, and port safety functions as prescribed in the Port Safety Operating Licence. (These port safety functions include the provision and maintenance of navigation aids, marine pollution emergency response and administering the legislation concerning the handling, transportation and storage of dangerous goods within the jurisdiction of the ports). The Port Authority is also the regulator of the Hunter Coal Export Framework and a participant in the Hunter Valley Coal Chain Co-ordinator.

In addition to these commercial marine functions in the six ports, the Port Authority of New South Wales is responsible for the overall management of business activities and related assets in Sydney Harbour - predominantly cruise activities at its two facilities, the Overseas Passenger Terminal at Circular Quay and the White Bay Cruise Terminal at White Bay. Other business activities include management of the dry bulk facility at Glebe Island.

It is the objective of the Port Authority to revitalise Glebe Island and White Bay in a manner that maximises both urban amenity and the strategic and economic value of the port. The Port Authority acknowledges that its operations are underpinned by a "Social Licence" granted by communities which abut its activities as well as the community of Sydney as a whole. In maintaining this "Licence" the Pott Authority focuses on sustainable operating practices and collaborative planning, thereby providing benefits to the public such as improved visual amenity and access, to port lands and the waterline.

There are number of potential projects at Glebe Island and White Bay which link to "whole of government" initiatives and involve scenarios for development and funding. These projects are in early conception and are not yet underpinned by fully developed business cases, and as such no consequential funding or capital expenditure has been incorporated into the Port Authority's financial performance targets.

1.2 Total cash distributions to shareholder Total cash distributions of $3,625k were paid to NSW Treasury as at the Half-year ended 31 December 2016, comprising Income Tax Equivalent paid of $3,315k and NSW Government Guarantee Fees paid of $310k.

For futther details, please refer to Section 1 .1 0 'Financial Performance Indicators and Ratios'.

OF HEW SOUTH WALES of 11


1.3 Summary of trade and financial results I 1-! Year to Date 31-Dec-16 i ~~ 2016/17

: Actual Budget Variance :~ Forecast

Navigation: Number of Chargeable Vessel Calls 1,094 1,023 71 2,089

Chargeable Vessel Gross Tonnage 43,906 43,023 883 89,897 ('OOOs)

Pilotage:

Number of Piloted Vessel Movements

Port Authority of New South Wales 5,311 5,146 165 10,386

Newcastle 2,316 2,194 122 4,378

Port Kembla 829 906 (77) 1,830

Regional Ports 50 48 2 110

Sydney Harbour 477 428 49 986

Port Botany 1,639 1,570 69 3,082

Site Occupation ('OOOs):

Number of Chargeable Passengers 327 341 (13) 766

Financial ($'000s):

Income 72,528 71,134 1,394 148,152

Operating Expenditure 56,076 56,184 108 113,327

EBITDA 16,452 18,550 (2,098) 38,574

Net Profit!( Loss) After Tax 6,068 7,263 (1 ,195} 15,625

Note: Numbers m thts table (and subsequent tables) may be affected by roundmg errors, but without material impact.

1.4 Profitability

2,089

91,536

10,599

4,462

1,729

130

1,039

3,239

766

147,599

114,737

32,596

11,126

For the Half-year ended 31 December 2016, the unfavourable variances compared to the budgeted targets established in the Port Authority of New South Wales' 2016/17 Statement of Corporate Intent relating to the key profitability measures EBITDA ($2,098k) and Net Profit After Tax ($1, 195k) were due mainly to the unfavourable impact of the delay in the timing of the sale of land at White Bay to UrbanGrowth of $3,600k representing Capital Gains Tax reimbursement by NSW Treasury for the sale transaction, when compared to budget. The budget assumed that the sale would take place in December 2016 whereas it is currently assumed to occur in the first quarter of the 2017-18 financial year. This unfavourable variance is partially offset by favourable Pilotage, Navigation and Wharfage revenue variances as compared to budget.

The Forecast for the Year ending 30 June 2017 currently projects an EBITDA of $32,596k which is $5,978k unfavourable when compared to budgeted target of $38,57 4k. The impact of the delay in the per passenger charge from $30 to $35 from 1 January 2017 to 1 July 2017 is offset by the impact of updated trade assumptions when compared to the budget. The unfavourable variance

of 11

r ,


resulting from the delay in the sale of land at White Bay to UrbanGrowth from 30 June 2016 to the first quarter of the 2018 financial year impacting the timing of the reimbursement of Capital Gains Tax ($3,600k) and the loss on disposal of the pilot jetty at Newcastle ($1, 122k) offset by the favourable impact forecast for the reimbursement of capital gains tax following the sale of land on 23 December 2016 to Roads and Maritime Services for the WestConnex project ($700k) when compared to budget.

Further contributing to the unfavourable variance is above budgeted Operating Expenditure ($1 ,410k) and below budgeted Lease Rental ($1 ,361 k).

The projected Net Profit After Tax of $11, 126k is $4,499k unfavourable when compared to the budgeted target of $15,625k.

For further details, please refer to Section 1.6 'Income Statement'.

In the balance sheet Investments was below budget ($18,824k) mainly due to the delay in the sale of land at White Bay to UrbanGrowth. Also, there was an adjustment in the 2015/16 financial year to Retirement benefits (Super) of $25,833k (due to the impact of the reduction in the liability discount rate) which has resulted in a variance to budget and is charged against Retained Earnings.

Cash paid to suppliers and customers was above budget due to the timing of the finalisation of the settlement with Sydney International Container Terminals Limited (S ICTL) which took place on 22 December 2016 this was assumed in the budget to occur in January 2017.

1.5 Capital Expenditure Capital expenditure of $3,841 k was $7,653k (66%) below budget and is mainly due to the following;

The commencement of the Glebe Island Wharf Augmentation and Glebe Island Silos Rectification projects has been deferred due to current evaluation regarding the future use of Glebe Island by the NSW Government.

Foreshore Beach Groynes project $227k below budget. However the delay in Groynes construction from July 2015 to June 2016, to incorporate the adjacent Sydney Water pipe extension works and providing a better outcome for both parties has resulted in an unfavourable timing variance. The Groynes project achieved practical completion on 16 December 2016.

Moore's Wharf Roof Replacement works have been slightly delayed due to the heritage assessment and relocation of antennae including air-conditioning condenser units to the ground floor of the facility. Practical completion is estimated to be achieved by February 2017.

The Fire Fighting Capability Platform project formally started in January 2016 however the design EOI and assessment stage has taken longer than originally estimated and this has delayed/extended the design project timelines.

Other capex projects were $2,577k below budget mainly due to the rescheduling of various IT projects, the AMP radar relocation being deferred as the building owner has revised its timeframe for surrender of the existing lease and lower than estimated Annual Provisions related expenditure.

~THORITY OF I~V SOUiH WALES of 11


1.6 Income Statement ($'000s)

Revenue

Pilotage

Navigation

Wharfage

Site Occupancy- Passenger Charge

Site Occupation - Other

Navigation Recharge

Lease Rental

Miscellaneous - Other

Total Revenue

Operating Expenses

Salaries & Wages

Service Contractors - External Services

Service Contractors - Maintenance of Assets

Service Contractors - Security

Materials

Uti lities & Communications

Council Rates

Administration - Insurance

Administration - Rent

Administration -Other

Indirect Taxes

Government Cross Subsidy (Channel Fee)

Asset Write Down/Off and Disposal

Total Operating Expenses

EBITDA excluding non-cash and extraordinary items

Plus: CGT reimbursement from NSW Treasury: White Bay land sale

Plus: CGT reimbursement from NSW Treasury: Sale of land to RMS for WestConnex

Plus: Investment Property Revaluation Gain

Less: Loss on disposal of Newcastle Pilot Jetty

EBITDA

Less: Depreciation

EBIT

Plus: Interest on Deposits

Less: Financial Expenses

Plus: Finance Lease Income

Net Profit/(Loss) Before Tax

Less: Income Tax Equivalent Expense

Net Profit/( loss) After Tax

~ ,?'PoRT AUTHORITY

OF NEW SOUTH WALES

Year to Date 31-Dec-16 iei!11JI 2016/17 -1

Actual Budget Variance ·~ _£~~_!

20,239 19,908 331 39,887 40,732

23,021 22,144 877 44,628 46,155

1,411 1 ' 141 270 2,212 2,693

9,815 10,163 (348) 25,060 22,752

524 371 153 725 788

4,949 4,763 186 9,525 9,673

7,445 7,531 (86) 14,559 13,198

5,124 5,113 11 11,556 11,608

72,528 71,134 1,394 148,152 147,599

32,154 32,075 (79) 64,118 64,318

3,809 3,825 16 7,740 8,525

3,687 3,562 (125) 7,092 7,292

2,863 2,737 (126) 6,569 6,569

603 779 176 1,555 1,355

1,254 1,446 192 2,820 2,620

382 396 14 788 788

1,332 1,486 154 2,876 3,126

1,349 1,326 (23) 2,628 2,728

2,406 2,532 126 5,055 4,955

3,189 3,093 (96) 6,186 6,386

3,043 2,927 (1 16) 5,900 6,071

4 (4) 4

56,076 56,184 108 113,327 114,737

16,452 14,950 1,502 34,825 32,862

3,600 (3,600) 3,600

700

149 149

1,122

16,452 18,550 (2,098) 38,574 32,596

11,695 12,063 368 24,135 23,640

4,757 6,487 (1 ,730) 14,439 8,956

65 134 (69) 260 130

22 137 115 271 70

2,729 2,729 5,490 5,490

7,529 9,213 (1,684) 19,918 14,506

1,461 1,950 489 4,293 3,380

6,068 7,263 (1 ,195) 15,625 11,126

.. ,

of 11


1. 7 Balance Sheet

OF NEW SOUTH WALES

As at 31 December 2016 ,~ 2016/17 -,

Actual Budget Variance ~ £~recast

26,652 426,110

784 7,528

81,533

16,247 5,400

629

14,665

1,138

10,470

257

of 11


1.8 Cash Flow Statement

82,146

(59,655)

22,491

65 134

(310)

(5,050)

Note: In the Actual and Budget columns above, Cash Inflows are represented by positive numbers (in black font) and Cash Outflows by negative numbers (in parentheses and red font) .

1.9 Borrowings

ening Balance of Borrowings

et (repayment)/drawdown of borrowings (cash)

....

of 11


1.10 Financial Performance Indicators and Ratios Year to Date 31-Dec-16 ~~ 2016/17

Actual Budget Variance Forecast

1. Financial Performance Indicators ($'000s)

EBITDA

Capital Expenditure

Dividend Provided For

Net Debt

Debt

2. Cash Distributions to Shareholders ($'000s}

Income tax equivalent paid

Return of Capital

Dividends paid

Government Guarantee Fees paid

3. Profitability Ratios (%)

Growth in Operating Costs

Return on Average Assets

Return on Average Equity

EBITDA Margin

Dividend Payout Ratio

4. Financial Leverage Ratio (%}

Gearing Ratio

5. Cash Flow Adequacy Rati9s

Interest Cover (Number of Times)

Debt Cover (Years)

6. Liquidity Ratios

Current Ratio

Cash Ratio

OF NEW SOUTH WALES

16,453 18,549

3,841 11,494

2,895 (14,241)

5,400 4,634

3,315 5,815

310 320

3.5% 3.8%

1.9% 2.7%

3.0% 3.4%

22.7% 24.8%

1.3% 1.1%

731.6 135.5

0.2 (0.8)

0.8 0.9

0.1 0.4

(2,095) 38,573 32,596

7,653 27,031 13,916

(17,137) (3,695) (8,328)

(766) 4,565 0

2,500 10,291 5,445

10 320 310

0.3% 3.1% 3.0%

(0.8%) 3.0% 1.8%

(0.4%) 3.6% 2.6%

(2.1%) 25.3% 21.9%

(0.2%) 1.0% 0.0%

596.1 141.5 459.7

(0.9) (0.1) (0.3)

(0.1) 0.7 0.9

(0.4) 0.2 0.3

of 11

·.~


1.11 Non-Financial Performance Indicators

I Year to Date 31-Dec-16 III!!IJ 2016/17

Actual Budget Variance : ~ Forecast

ional Ports 1,094 1,023 71 2,089 2,089

Chargeable Vessel Call Gross Tonnage ('OOOs) 43,906 43,023 883 89,897 91 ,536

10,599

Chargeable Vessel Calls- Cruise (Number of) 107 140 336 330

327 341 766 766

1,051 999 52 2,034 2,034 Newcastle 1 '160 1,097 63 2,189 2,233 Port Kembla 421 453 (32) 915 871

43 24 19 55 55 2,675 2,573 102 5,193 5,193

'OOOs) 43,069 42,272 797 88,577 90,092

Newcastle 57,954 54,714 3,240 109,246 112,048 Port Kembla 18,944 21 ' 121 2,177 42,329 40,473 Re ional Ports 837 751 86 1,320 1,444

120,804 118,858 1,946 241,472 244,057

OF t-fE.\fl SOUTH WALES of 11

' '


2 Notes to Unaudited Financial Statements

2.1 Basis of Preparation The financial statements in this Performance Report represent a special purpose financial report for the interim period ended 31 December 2016.

The financial statements have been prepared in accordance with the accounting policies as disclosed in Newcastle Port Corporation's (trading as the Port Authority of NSW) 30 June 2016 annual financial statements. Accordingly, it is recommended that these financial statements be read in conjunction with the 30 June 2016 annual financial statements .

2.2 Unaudited Financial Statements The financial statements in this Performance Report have not been audited or reviewed in accordance with auditing standards.

In the financial statements all amounts have been expressed in Australian Dollars rounded to the nearest thousand dollars.

~THORITY OF HEW SOUTH WALES of 11

.~1. ! · , ,.

port authority of new south wales performance report for the … · 2017. 9. 26. · performance...

Documents