Port of Rotterdam Posts Slight Profit Drop
- Business & Finance
Rotterdam Port Authority recorded 4.9% lower profit in 2014, standing at €215 million (USD 236.6 million), owing to higher interest charges and depreciation.
However, the port’s revenue rose by 3.1% last year, reaching €660 million, due to increased economic activity at the port.
“The massive investments of the past few years have caused our long-term debt rise to €1.3 billion, which also means a rise in our interest charges. In addition, the early repayment of a long-term debt of €45 million involved the payment of additional interest charges. Also, the commissioning of Maasvlakte 2 led to a rise in depreciation of €7 million,” says the port authority’s Financial Director Paul Smits.
The Port Authority’s two key sources of income are the leasing of the land and the seaport duties payable by ships docking at the port.
Revenue from the lease of land rose by €16 million (+5%) to € 337.5 million as a result of the release of a number of new sites, the charging on to individual customers for infrastructure built for their user need on a square metre-price basis, indexation of contracts and price adjustments in renewed contracts.
The seaport charges, which kept in line with the development of throughput measured in tonnes (+1.0%), rose by €3.6 million (+1.2%) to €306.2 million. In total, company revenue rose by €19.9 million (+3.1%) to €659.8 million.
The completion of phase 1 of Maasvlakte 2 brought the level of investment down to €189 million, a level that is still higher than before construction started on the new port area.
The Port Authority said it intends to re-invest the largest possible share of its revenue back in the port. These investments will be mostly directed at servicing its current customers and sectors, but the Port Authority is also eager to expand its activities in the port and to invest in innovation.
The Port Authority will distribute a dividend for 2014 of €89.2 million (+2.1%) to its shareholders: the municipality of Rotterdam (70%) and the Dutch State (30%). The municipality will receive €63.2 million, while the State receives €26 million.