Our operating result was in line with budget but a number of one-off costs impacted our profit after tax, the main one being an impairment of $99.5 million.
At 30 June 2016, the Directors assessed the Company’s value was lower than its equity value for accounting. The Company’s accounting value increased significantly when insurance proceeds relating to earthquake damage were received. At 30 June 2013, the Company’s equity value was $190 million. At the end of June 2014 this increased to $533 million, primarily as a result of booking insurance income of $358 million.
Throughout the earthquake period, the Company maintained strong earnings with many assets that were significantly damaged or destroyed. The impairment has arisen because the return generated by replacing destroyed assets, which do not in isolation increase operating earnings; and some of the capital projects that are necessary for the future of the Port, do not meet the immediate investment return established by the Directors.
For full financial information see the LPC 2016 Annual Report:
DRY BULK IMPORTS