Forth Ports Forecast Improved Profits

London – Forth Ports, the UK’s last publicly traded ports company, forecast improved first half profits at its seven ports with strong roll-on, roll-off traffic offsetting a decline in container volumes.

The Edinburgh, Scotland-based company, which is also active in real estate and materials recycling, said it expects a “satisfactory” full year as business is “generally holding up well.”

Forth Ports’ core ports unit booked underlying profit of $37.6 million in the first half of 2008, up 38 percent from the previous year, on a 23 percent growth in revenue to $147.5 million.

The Tilbury Container Terminal, near London, has been “more severely affected by the economic downturn” than other cargo sectors in the first half of 2009, despite an improvement in the second quarter, Forth Ports said in a trading statement.

But Tilbury will increase first half profit from a year ago thanks to an “excellent” increase in ro-ro shipments, the company said.

The Tilbury terminal handled 342,000 TEUs in 2008, a gain of 12 percent on the previous year.

First half container traffic at the Grangemouth, Scotland, fell five percent in the first half from a year ago. The port, which is close to Glasgow, boosted traffic last year by 11 percent to 157,225 TEUs.

Forth Ports handled 48.7 million tonnes of cargo in 2008, an increase of five percent on the previous year.

Forth Ports was at the center of takeover speculation a year ago after Australia’s Babcock & Brown European Infrastructure Fund built up a 23.5 percent stake to become the biggest individual shareholder.

But Babcock & Brown is now selling off stakes in its European ports including PD Ports, operator of Teesport, one of the UK’s biggest bulk ports.

Contact Bruce Barnard at brucebarnard47@hotmail.com.