A container ship at Napier Port. Photo: Supplied / Napier Port
The port of Napier has had a strong profit rebound as the regional economy recovered from Cyclone Gabrielle lifting cargo volumes and revenue.
Key numbers for the six months ended March compared with a year ago:
- Net profit $20.2m vs $14.3m
- Revenue $78.1m vs $70.6m
- Container volumes +13.9 pct
- Bulk cargo volumes down 9.2 pct
- Interim dividend 4 cents per share and special dividend 2.5 cps.
The country's fourth biggest port benefited from the recovery of the broader regional economy from 2023's Cyclone Gabrielle, which disrupted horticulture, timber and wood products exports and damaged the port and transport links.
Chief executive Todd Dawson said a return to regular and normal trading conditions, especially for key customers, was behind the profit lift.
"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," Dawson said.
The bottom line result was also boosted by a final insurance payment of $7.5 million.
The gain in container volumes offset a fall in bulk cargo as fewer logs were exported, and revenue from cruise ships also fell as the number of visits decreased to 77 from 88, with 66 visits so far booked for the coming season.
Dawson said the port's diverse cargo base along with tight control on costs allowed it to cope with the changing trading environment.
"Demand for the region's food and fibre exports has been strong, and we expect to sustain healthy volume and earnings into the second half of the year."
The company is forecasting a full year underlying profit of between $59m to $63m.
Shareholders were rewarded with a special one-off dividend of 2.5 cents a share as it returned surplus cash arising from the final insurance payout.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
