Napier Port has posted $70.6 million in revenue for its half year result, up 10.1% on the same period last year led by growth in export log and cruise revenue.
The NZX-listed port company delivered a net profit after tax of $11.1m for the six months to March 31, up 48.3% compared to $7.5m last year.
Container services revenue for the half year decreased 7.8% to $33.6m following a 17.3% decrease in container volumes to 98,000 TEU, which was partially offset by a 11.5% increase in average revenue per TEU.
Bulk cargo revenue for the half year increased 27.1% to $26.2m as export log volume increased 35.7% to 1.55 million tonnes and total bulk cargo volume increased 21.6% to 1.88 million tonnes.
Cruise revenue for the first half increased 74.3% to $8.9m with 88 cruise vessel calls in the half year compared to 62 in the prior year.
A post-Cyclone Gabrielle business interruption insurance claim contributed $7.2 million to the reported net profit.
Directors declared a fully imputed interim dividend of 3 cents per share, increased from the interim dividend in the prior year of 1.7 cents per share.
The company’s share price rose over 6% on Wednesday to $2.50 per share.
Chief executive Todd Dawson says the half year result demonstrates Napier Port’s capability to be adaptable.
He says it “underscores the benefit of having a diverse and resilient cargo base, with log export and cruise earnings up, against reduced container and general import volumes”.
“The recovery of trade volumes together with effective cost control and yield management, is working well for us alongside the investments in infrastructure we have made and additional customer services we are providing,” Dawson says.
“We are demonstrating the positive operating leverage that is supporting this positive half year result for Napier Port.
“Despite softer market demand in China, log volumes were strong during the half year with good momentum sustained from our immediate catchment areas and additional contributions coming from Pan Pac and central North Island windthrown forests.
“Container volumes reduced during the period, as a result of Cyclone Gabrielle’s impact on Pan Pac’s production facilities and lower overall economic activity, however during the second quarter we welcomed a bounce back in refrigerated exports of horticulture, meat and other chilled produce as growing conditions across the spring and summer have been favourable,” he adds.
Outlook
The port company expects an underlying result from operating activities for the year to the end of September 2024 of between $50m and $53m, assuming a continuation of current operating conditions and excluding insurance claim income.
“While we expect ongoing inflationary cost pressures, uncertain economic activity, and export log market conditions to remain challenging, we look forward to the continuing ramp up of cargo volumes post Cyclone Gabrielle and continued earnings growth momentum,” Dawson says.
The board has resolved to pay a fully imputed interim dividend of 3 cents per share, which is increased from the 1.7 cents per share paid at the same time last year.
