Ports of Auckland has continued its impressive financial performance, despite facing a number of challenges in the last financial year.
It reported net profit after tax was $76.8 million compared to $60.3m for the previous year.
However, part of the reason for that includes $17.6m for items related to asset valuation changes and impairments compared to $5.3m last year.
Excluding the valuation changes and impairments, underlying profit after tax was $59.2m compared to $55m last year.
Group revenue lifted from $222.4 million to $243.2 million, up $20.8 million, reflecting increases in volume and inclusion of Nexus Logistics and Conlinxx revenue for a full year.
Its dividend to sole shareholder Auckland Council is virtually the same as last year $51.1 million – compared to $51.3 million for the previous year.
Car and light commercial vehicle volumes were up 0.1% to 297,678 units, while car dwell time averaged 2.90 days, a slight fall on the previous year’s 2.93 days.
And container volumes were up 2.2% to 973,722 TEU (Twenty-foot Equivalent Units), while breakbulk and bulk volumes (including cars & light commercial vehicles) were up 4.8% to 6.77 million tonnes.
Chief executive Tony Gibson says it been a busy year for the organisation.
“We’re making a significant investment in our people, technology and infrastructure to establish a platform for sustainable future returns, with multiple projects, including automation, underway this year.
“At the same time we delivered great service to our customers and a strong result for our owner.”
“Volumes, revenue and profit were all up, as was capital expenditure as our investment programme accelerated. We made significant progress with work to automate our container terminal, having taken delivery of 25 of our 27 new automated straddle carriers (container moving machines) and plan to go live with automation in the second half of 2019.”
The most unusual challenge this year was the arrival of the brown marmorated stink bug on vehicle ships from Japan, Gibson says.
“The bug is a major threat to our horticultural sector so had to be kept out of the country, but the measures taken to keep it out caused significant delay and disruption to the import of vehicles. It was a testing and costly time for the industry, and we can all be proud of the way everyone worked together to get through the problem.”
Good progress is being made on its rail-linked network of Inland Freight Hubs, with the completion of earth works at our new 33 hectare Waikato Hub.
“We are working on road and rail connections and the site will be operational by the middle of 2019.”
Gibson says the adoption of its 30 year master plan has given the port a mandate for the next three decades.
But there are also headwinds on the horizon, he says.
“There has been further consolidation of container shipping lines from mergers and acquisitions. We now have eight container line customers compared to 14 in the 2015/16 year. Container lines are facing higher costs and a difficult market, so put us under pressure to reduce costs.
“We are also very aware of the increasing uncertainty in the global economy and the potential for a downturn as a result of increasing protectionism.”
