Napier Port has delivered a strong half year earning result. Napier Port CEO Todd Dawson says a strong port is important to region’s economic prosperity.
“When the region does well, Napier Port does well and vice versa. That’s why it’s pleasing to deliver strong earnings recovery in the first half of our financial year.”
In the first six months of our financial year, strong log volumes, good growing conditions, new cargoes, and a steady stream of cruise vessels, led to a significant ramp up in port activity. “This resulted in revenue of $70.6 million, reported net profit after tax of $14.3 million, and a fully imputed interim dividend of 3 cents per share [total $6.0 million interim dividend], which is increased from the 1.7 cents per share paid at the same time last year.”
Napier Port expects an underlying result from operating activities for the year to the end September 2024 of between $50 million and $53 million (assuming a continuation of current operating conditions and excluding insurance claim income). Todd says the result demonstrates Napier Port’s capability to be adaptable and 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 customers services we are providing. 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.
Apple harvest leaves our shores “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 delivered favourable conditions.
A record number of cruise vessel visits and passenger numbers visited Napier Port, due to the resurgence of cruise post-pandemic. The new wharf has enabled greater berth availability including the capability to accommodate several cruise vessels simultaneously. Chair, Blair O’Keeffe said “While regional recovery is ongoing following Cyclone Gabrielle, trade by key customers and cargoes have begun to return towards former levels.
Napier Port has provided operational capacity and flexibility during this traditionally busy harvest period, while retaining cost and capital discipline. In doing so, the management team has delivered a good half year result.”
“During the second half of the year, we anticipate windthrow log volumes will reduce diminish and unprocessed logs from Pan Pac will also reduce as they are redirected to
pulp manufacturing operations. At the same time, as pulp production increases, wood pulp and timber container volumes should return to historical levels towards December.
“We currently have 90 forward bookings for the upcoming 2025 cruise season commencing in October.
“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,” Todd says.
