Napier Port has reported a sharp rise in earnings for the June quarter, with growth driven by higher container volumes, yield management and tight cost control.
For the third quarter to June 30, revenue rose 16.4% to $42.5 million, with container services volumes up 12.7% and bulk cargo volumes up 2%. Operating earnings increased 44.6% to $17.7m, while underlying net profit after tax surged 75.6% to $8.4m.
For the nine months to June, revenue grew 12.6% to $120.6m, operating earnings climbed 28.4% to $50.9m, and underlying net profit after tax lifted 46.1% to $23.2m. Reported net profit after tax, which includes Cyclone Gabrielle insurance income and prior year tax changes, rose 49.9% to $28.6m.
The NZX-listed port expects full-year operating profit to be at the top end of its $59m–$63m guidance, assuming current conditions continue and excluding insurance claim income.
Chief executive Todd Dawson said the results were underpinned by sustained growth in trade volumes, supported by long-term yield strategies and disciplined cost management.
“Good growing conditions and an early apple picking season delivered strong refrigerated container volumes, changes to shipping line services resulted in higher DLR (discharge, load, restow) and transhipment container volumes and Pan Pac’s return to full pulp and timber operations increased dry export container volumes,” Dawson says.
“As outlined at the half year, we will be increasing capital investment in the near term linked to our investment programme focused on infrastructure and capability enhancement, and asset renewal and replacement.”
Container services revenue for the quarter rose 21% to $29.4m, and for the nine months was up 24.6% to $72.2m, with average revenue per TEU up 9.9% to $373.
Bulk cargo revenue for the quarter lifted 10% to $12.3m, despite a modest 2% rise in volumes. For the nine months, revenue edged up 1.1% to $37.7m, although volumes fell 6%.
The cruise season ended in May with 78 vessel calls and more than 108,000 passengers, generating $8.3m in revenue. There are currently 61 bookings for the 2026 season.
Napier Port invested $19.1m in capital assets over the nine months and expects to invest about $120m between 2025 and 2027 on asset replacement and growth projects, including $30m this financial year.
Operating cash flow rose to $53.9m, while debt fell to $107m.
