Napier Port reports resilient half year revenue and earnings as the diversity of the Napier Port trade portfolio mitigates the ongoing effects of the Covid-19 pandemic.
Sustained strong log export market conditions resulted in a record log export volume for the first half of the financial year.
Revenue for the half year to 31 March 2021 rose 0.6% to $52.6 million from $52.3 million in the same period a year ago. Napier Port’s total container trade of 135,000 twenty-foot equivalent units (TEU) was in line with the prior period, while bulk cargo volumes increased 17.1% to 1.87 million tonnes from 1.6 million tonnes.
Bulk cargo revenue increased $4.2 million or 26.5%, to $20.2 million driven by growth in log export volumes. Log exports increased 20.6% to 1.43 million tonnes due to sustained strong log export market conditions. No cruise revenue was earned in the half year, due to closed international borders, compared to $4.2 million in the same period last year.
Underlying net profit after tax, after adjusting for non-recurring net gains in the prior year, decreased 5.2% to $10.6 million from $11.1 million in the prior year as a result of the decrease in the result from operating activities and increases in depreciation and amortisation expenses.
Reported net profit after tax decreased 14.9% from $12.4 million to $10.6 million as the prior year benefited from one-off tax income of $1.5 million due to the reinstatement of tax depreciation on commercial buildings.
Balance sheet and dividend
Mr MacLeod said Napier Port would maintain a prudent approach to its balance sheet, considering its existing commitments related to the 6 Wharf construction project and ongoing trade uncertainties.
“Pipfruit exports are tracking in line with the prior year, but it is not clear what the eventual export crop size for this year will be as a result of the seasonal labour shortages. Similar dynamics are at play across all fresh produce sectors.
“Meanwhile, the continued challenges to container-based supply chains from regional and global shipping disruptions continue to impact on the free flow of cargo.
“Noting continued uncertainties and assuming a continuation of current market conditions, Napier Port reaffirms the earnings guidance provided in April for the underlying result from operating activities for the year to range between $39 million and $42 million.
“We intend to provide a further interim update to the NZX market regarding our June quarter trading results during August.”
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