NZ's Port of Tauranga year profit up 7 percent

WELLINGTON, Aug 28 (Reuters) - New Zealand's Port of Tauranga (POT.NZ: Quote, Profile, Research, Stock Buzz) reported a 7 percent rise in full year net profit on Thursday, due to increased container volumes and lower costs.

The company, New Zealand's biggest export port, posted a net profit after tax was NZ$42.1 million ($29.6 million) for the year to June 30, compared with NZ$39.3 million in 2007.

Analysts surveyed by Reuters Estimates had expected a net profit of NZ$41.4 million.

The company declared a dividend of 16 cents per share, compared with 14 cents last year.

The port said it expected log exports to support double-digit growth over the next year.

Port of Tauranga's shares, 55 percent owned by a local council, last traded up 0.7 percent at NZ$7.20. The stock has risen around 5 percent so far this year, compared with an 18 percent drop in the benchmark NZSX-50 index .NZ50.

On Aug. 20 Ports of Auckland, the country's largest port, which broke off merger talks with Port of Tauranga last year, said it might like to buy its rival's container business.

Port of Tauranga said it had still not seen any proposal from Ports of Auckland. However, it has said previously a merger between the two makes sense, but it believes its container business was worth more than Ports of Auckland's.

A merger would have created a NZ$1.6 billion company handling about two-thirds of New Zealand's cargo.

The two ports have been vying to be the main New Zealand port of call for shipping companies such as Maersk (MAERSKb.CO: Quote, Profile, Research, Stock Buzz), Hapag-Lloyd HPLG.H and Hamburg Sud. ($1=NZ$1.42)