Marsden Maritime Holdings Ltd lifted earnings by 20% to $5.3 million in the December half-year, but expects exports of its big earner, logs, to slow in the rest of the second half.
Earnings from Marsden Maritime’s joint venture interest in Northport Ltd rose 9.7% ($400,000) to $4.8 million. The balance came from its property & marina business segments, which were up 43%.
Chief executive Felix Richter said last week: “While we are unable to quantify the potential financial impact at this time, we are closely monitoring changes to trading patterns, particularly as it affects log export through Northport & the key Chinese destination market. The impact on global trade & supply chains from the coronavirus outbreak is uncertain, and we continue to be in close communication with Northport management to understand the possible impacts which will vary by cargo type.
“Log exports continue to sail from Northport. However, there have been reductions in log harvesting and current log inventory levels on Chinese ports remain high. We understand port operations in China are rebuilding towards normal operating capacity, but it is uncertain how quickly this will occur.”
“Given the current market conditions being disrupted by the COVID-19 virus & uncertainty regarding its duration, we expect a slowdown in log export through Northport from the levels seen over the first 6 months and therefore a softening of the expected year end result.”
Attribution: Company release & results.