The UK’s biggest ports operator kept annual profits moving ahead today after longer-term contracts ensured it weathered tough economic conditions.
Associated British Ports, which operates from 21 sites in the UK and employs more than 3,000 people worldwide, said underlying profits rose 2% to £132.3m in 2005 – a figure at the top end of market expectations.
The group added that two major projects due to become operational at the Port of Immingham in the coming months were likely to bring higher growth in the second half of the current year.
The two schemes, which involve investment of £87m, are on schedule and will provide a roll-on roll-off ferry facility and an extension to Humber International Terminal, one of the UK’s main coal import facilities.
A third major project on the Humber – a £30m container terminal for short-sea traffic – is due to become operational at the end of next year.
The company added there was potential for further development opportunities on the Humber, including a short-sea coal terminal involving investment of between £55m and £110m.
AB Ports said its policy of targeted investment brought six new long-term contracts during 2005.
The company said the deals underpinned its future growth prospects and helped the UK business to lift profits by 3% to £151.3m.
It added: “Given the economic environment that prevailed for much of the second half of 2005, this year’s 3% increase is satisfactory.
“As our growth strategy is delivering, we have no plans at present to change it.
“We will continue to focus on growing the UK business organically by investing in core activities and selling off non-core assets.”
AB Ports said annual revenues at Hull & Goole increased by 2%, helped by strong growth in container traffic, aggregates and cement volumes.
Coal imports and steel export volumes lifted revenues at Grimsby and Immingham by 2.2% while there was a drop of 1.1% for Southampton following a decline in container volumes.
References: EGi News 22/02/06
