Port of Tauranga has reported record underlying net profit after tax of $155.3 million for the year to June 30, up 23% from $126m a year earlier, despite lower overall trade volumes.
Reported net profit after tax was $156.1m, down 10% from $173.4m in the previous year, which included a $49.2m one-off gain from the sale of Northport shares.
Revenue increased 4.7% to $486.5m and earnings before interest, tax, depreciation and amortisation rose 17.6% to $275.7m. Operating costs fell 6.2% to $221.7m.
Total trade declined 3% to 24.6 million tonnes, driven by lower log and coal volumes, while container volumes edged up 0.4% to 1.21 million twenty-foot equivalent units (TEUs).
The company has declared a total ordinary dividend of 20.5 cents per share, up 22.8%.
Chief executive Leonard Sampson says improved productivity was a highlight, with average crane productivity increasing 9.9% to 30.8 moves per hour and ship rates rising 13.6% to 76.5 moves per hour.
“We’re seeing good improvements in service delivery to our customers, with our average crane productivity increasing 9.9% to 30.8 moves per hour, and ship rates increasing 13.6% to 76.5 moves per hour. These improvements were supported by on-time vessel arrivals climbing from 62% to 71% over the previous year,” Sampson says.
Exports fell 3.3% to 15.9 million tonnes and imports declined 2.3% to 8.7 million tonnes.
Export container volumes increased 2.4% to 512,765 TEUs and imports rose 2.5% to 411,340 TEUs. Transhipment volumes fell 5.5%, reflecting shipping service changes and berth capacity constraints.
Log exports dropped 8.1% to 5.8 million tonnes, with higher fuel costs linked to the Iran conflict prompting some exporters to reduce harvesting during the second half.
Direct dairy exports increased 3.9% to 2.0 million tonnes, while kiwifruit exports rose 8.5% to a record level. The two commodities contributed to a record volume of refrigerated export containers.
Imported coal volumes for Genesis Energy fell 64.8% as Huntly Power Station stockpiles stabilised and South Island hydro generation met winter demand.
Ship visits increased by three to 1445, while cruise ship calls fell 16% to 79.
The port is continuing to invest in capacity and equipment, with the second stage of its channel-deepening dredging programme due for completion by mid-2027.
Preparations for automation are also progressing, with the company moving to contract negotiations with its preferred supplier for electric automated stacking cranes.
Port of Tauranga took delivery in August of six additional hybrid straddle carriers and New Zealand’s first fully electric straddle carrier. These join seven hybrid units already operating, which the company says are around 25% more fuel-efficient than its older diesel-electric models.
Its first hybrid tug is also under construction in Türkiye and is expected to arrive in mid-2027.
Meanwhile, the port is awaiting a final decision on its Stella Passage development, designed to address berth constraints at its container terminal.
A fast-track approvals panel released a draft decision on August 17 proposing to grant all approvals for the project, subject to conditions. A final decision is expected in early September.
The development would convert existing cargo storage land into berths on both sides of the harbour.
“This is critical, national infrastructure that will pave the way for the next stage of growth at the Port, and for all of its cargo customers,” Hoare says.
Port of Tauranga says it has been unable to reach agreement with tangata whenua over mitigating the project’s cultural effects but remains committed to working with local iwi and hapū.
The company expects capacity constraints to continue until the Stella Passage development is completed, while Middle East conflict, fuel prices, geopolitical disruption and tariff volatility remain risks to trade.
Subject to trading conditions and events outside its control, Port of Tauranga is forecasting underlying earnings of between $160m and $175m for the 2027 financial year.
