Ports of Auckland has posted a net profit after tax of $23.5 million for its interim result with volumes up across all cargo types.
The improved volumes contributed revenue of $131.6m for the six months, up by $17.4m from the previous comparative period.
Costs increased by $15.7m due to additional costs in energy, depreciation, and labour, from the impact of COVID-19, it reports.
Net profit after tax of $23.5m was an increase of 72.8% from December 2020 results. However, this result includes $8.6m revaluation gain on investment properties. Excluding this gain, net profit increased by 9%.
Shareholder Auckland Council will receive an interim dividend of $2.1m.
Container volume was up at 364,140 TEU (twenty-foot equivalent units) compared with 358,899 TEU in the prior comparative period.
Breakbulk volume (including cars) for the period was 3.9 million tonnes compared to 3.1m tonnes. Within that, car volumes were 129,924 units compared to 104,224.
The company says it’s aiming for a full terminal rollout of the automation project by June 30.
However, current and further delays from COVID and the Omicron surge and the difficulties of operating under the ‘traffic light’ settings is putting pressure on this timetable, it says.
It says the long Auckland lockdown has slowed the project but for the first time in two years it has expert support from the overseas vendor on the ground in Auckland.
The port is also implementing the recommendations of the Construction Health and Safety New Zealand report into its safety culture and practices.
So far 21 actions have been completed and the remaining 24 are in progress. It is on course to implement all the recommendations by the end of June 2022.
Meanwhile, offshore disruption to the supply chain and congestion in Auckland’s landside supply chain are contributing to congestion in the terminal which is slowing operations.
The company says it is looking to lift productivity where it can and this includes recruiting and upskilling staff. It’s increased operational staff numbers by 17% in the last 12 months and is looking to increase staff numbers further over the coming year.
“Omicron is not going to make the next six months easy, especially with Auckland continuing to be the epicentre of New Zealand’s COVID-19 outbreak,” the company says.
“Congestion in the landside supply-chain has already impacted port operations this year, and it will get worse in the short term as more people get infected.
“We have had robust COVID-19 controls in place on the port for nearly two years and have put additional measures, such as pre-work rapid antigen tests, in place.
“While these COVID controls slow down operations, they have helped us avoid the significant port shutdowns which have been seen overseas.
“We will continue to focus on our core priorities for the remainder of the financial year and look forward to conditions gradually returning to normal in FY23,” the company says.
