Napier Port saw rising container volumes and tight cost controls drive a 40.8% increase in net profit for the six months to March 31.
The NZX-listed port operator reported a net profit after tax of $20.2 million, up from $14.3m a year earlier. That figure included a $7.5m insurance settlement relating to Cyclone Gabrielle.
Underlying net profit rose 33.4% to $14.8m, while revenue climbed 10.6 per cent to $78.1m, led by growth in container services.
Chief executive Todd Dawson says the result reflected strong operational performance under improved trading conditions.
“This positive half-year result reflects Napier Port’s strong operational performance under improved trading conditions. The full resumption of Pan Pac’s pulp and timber operations has driven a notable increase in dry export container volumes. Meanwhile, favourable growing conditions led to an earlier apple harvest, boosting refrigerated container throughput.”
He says changes to shipping line services had also contributed to “significantly higher DLR and transhipment volumes compared to the same period last year”.
“In contrast, bulk cargo volumes were softer, primarily due to the absence of windthrown logs that had positively impacted last year’s first half result. This result once again highlights the value of a diverse and resilient cargo base, supported by the operational agility to deliver capacity and flexibility when needed.”
Container volumes rose 13.9% to 112,000 TEU, supporting a 27.2% lift in container services revenue to $42.7m. Bulk cargo revenue fell 2.7% to $25.5m as log exports declined 12.7%. Cruise revenue dropped 8% to $8.2m.
Operating expenses rose by just 4%, enabling what the company described as “positive operating leverage”, with its operating result up 21.1% to $33.1m.
Dawson says the port remained focused on maintaining momentum into the second half of the year.
“We’re pleased to deliver a solid half-year result for both our region and our shareholders. This outcome reflects the dedication of the Napier Port team, who achieved it despite operating with fewer resources than prior years and some equipment availability challenges in the first half of the year.”
He added that demand for food and fibre exports had been strong, with pipfruit exports benefiting from an earlier harvest.
“We anticipate continued momentum in containerised wood pulp and timber volumes, provided sector market conditions remain stable.”
However, he noted some uncertainty around log exports, citing global market dynamics and trade negotiations.
The board declared a fully imputed interim dividend of four cents per share, up from three cents last year, and a one-off special dividend of 2.5 cents per share, also fully imputed.
Looking ahead, the port has upgraded its forecast for the full year to September 30, expecting an underlying operating result between $59m and $63m, assuming current trading conditions continue.
Napier Port will provide a trading update for the June quarter in August.
