Port Of Tauranga (NZX:POT) Quick View

The Port Of Tauranga (POT) has withdrawn it’s profit guidance (of $94m-$99m for the year, which was reduced from previous guidance due to the Coronavirus) because the Coronavirus problems increased and will be around for an indeterminable amount of time.

Prior to this announcement, it seems as though earnings were broadly flat compared to the previous half years (2017:$47.1m; 2018:$50m; 2019:$48.3m). Correspondingly zero dividend growth.

Net Debt as a percentage of Equity is also flat. Given that equity could have been growing due to the increase in NTA (which accounts for a good percentage of the share price), it’s safe to assume that debt could be increasing YoY, without investigating further. This gives rise to concerns over a dividend trap.

Significant CAPEX planned for coming years – No idea if these are earnings accreditive.

It seems to me from a quick overview, POT hasn’t earned it’s PE of 46-47.


Port Of Tauranga Limited (NZX:POT)

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