Port Otago possible sale

[Sgt Pepper]

The Otago Regional Council is currently considering its options, as the 100% owner , including a full or partial sale. Some way to go but does anyone have any thought how attractive if an IPO eventuated of this business valued at $490 million?

[silverblizzard888]

Well considering revenue recently for the half year was 44 million down from 52 million. Profit during that period was 8 million down from 10 million. Reason was a slower half than usual.

Assuming 20 million profit for the full year, that PE would be near 25. Compared to POT that trades at PE 38 stated on nzx site. Then it seems like relatively alright value.

Dividends paid for the half year was 3.6 million, relatively low but maybe acceptable if they have capital growth. Port was valued at 20 million in 1989 and now valued at 490 million after 30 years, that’s a 24.5x increase. Quite a decent return.

Source: https://www.odt.co.nz/business/port-otago-first-half-flat-rally-forecast

[horus1]

It seems to me these port cos are seeing the POT strategy starting to pay off and are thinking it is time to get out. Notice the transshipments are up. i.e. POT gains from them.

[beetills]

Surely any sale would be opposed by the Govt.