DARWIN Port has responded to the Northern Territory treasurer’s concern about its financial position with a statement saying it had achieved a record EBITDA of $34.012 million.
Earlier in the day on 27 November, treasurer Bill Yan, had released a statement saying the government was worried about the financial status of the port’s operator, Landbridge.
The treasurer said he had written to Landbridge to find out more about the state of the port’s finances.
But Non-Executive Director for Landbridge in Australia, Terry O’Connor, said Landbridge was pleased with Darwin Port’s successful FY2024 operational performance.
“Achieving a record $34.012 million in EBITDA, is a significant increase from our FY2023 result of $23.285 million in EBITDA.
“This outstanding increase in EBITDA is mostly due to increased activity through Darwin Port,” he said.
“The Port incurred a loss before tax of $34.362 million (2023: $25.618 million) negatively impacted by non-cash accounting entries associated with intercompany debt which was due to be refinanced.”
Mr O’Connor said the underlying operations of Darwin Port have improved significantly year-on-year.
“Darwin Port’s China parent is in the process of refinancing an overdue corporate bond amounting to RMB 500 million ($107m), which we expect will be settled by Q2 in 2025,” he said.
Additionally, the Group is considering specific asset sales in China (for the avoidance of doubt not including Darwin Port) through 2025.
“Landbridge in China has a portfolio of large infrastructure assets, and it is looking to moderate its debt, which will likely see the sale of some assets across the Group.
“Importantly, Darwin Port remains a key asset of the group noting its recent performance, continued strong growth prospects as a gateway to Asia, and its positive contribution and engagement with the local economy,” Mr O’Connor said.
“Darwin Port remains in a strong financial position due to the significant headroom between its operating cashflows and debt service requirements along with its long-dated external debt position,” he said.
The comments followed the statement released by Mr Yan, which said the government had been made aware of concerns surrounding the financial status of the Chinese-owned Landbridge.
“We have provided notice to the federal government given the port’s national significance,” the report said.
“The Territory Government has written to Landbridge seeking further information about their financial status, and ability to meet their payment obligations.
“This additional information will guide the Territory Government’s next steps regarding operations at the Port.
“Our immediate focus is to ensure the Port remains operational while its longer term future is confirmed.
Mr Yan will meet with the federal government’s transport minister Catherine King, to discuss this issue in Canberra tomorrow.
“The Northern Territory is reviewing our rights, and our future action will be made in the best interests of Territorians.”
The purchase of Darwin Port nine years ago by the Chinese-owned Landbridge has been surrounded by controversy.
In 2015 Landbridge paid $506 million in a Northern Territory tender for a 99-year lease over the port. The previous federal government ordered a review of the deal in 2021 because of fears over national security, however the defence department review said there were insufficient grounds to scrap the lease.
This article has been updated to include comment from Darwin Port.
