Financial Results
Revenue for the 2024 financial year increased 15.9% to $141.4 million from $122.0 million in the previous year, following growth across all trade areas.
Cruise vessel visits to Napier Port increased to 89, from 64 vessel calls in the prior year, and contributed $9.1 million in revenue.
Container volumes increased by 3.4% to 230k TEU [4] from 222k TEU. The increase was driven by higher reefer exports as apple exports and fresh and other chilled produce rebounded following prior year weather related crop losses.
Bulk cargo volume increased 9% to 3.47 million tonnes, from 3.18 million tonnes a year ago. The increase was largely due to 13.5% growth in log volumes to 2.87 million tonnes, compared to 2.52 million tonnes in the prior year. Log volume was supported by cyclone affected windthrown logs and redirected logs, that would have otherwise been processed into wood pulp or timber.
Container services’ average revenue per TEU increased by 7.8% compared to the prior year due to container mix changes, tariff increases and improved container depot revenues.
Bulk cargo average revenue per tonne increased by 8% compared to the prior year, primarily as a result of tariff increases and customer mix changes.
The result from operating activities increased 39.5% to $52 million, compared with $37.2 million in the previous year, as the revenue increase of $19.4 million exceeded operating expense growth of $4.7 million.
Reported net profit after tax was $24.8 million, a 49.7% increase on the prior year’s $16.6 million. This included a further $9.25 million contribution from the Cyclone Gabrielle insurance claim. Underlying net profit after tax, excluding net insurance proceeds, revaluation gains and tax impacts, increased 94.6% from $10.7 million to $20.7 million.
[4] Twenty-foot equivalent container unit
Capital Management and Dividend
Capital investment spend in the year of $13.1 million included maintenance dredging, wharf fendering improvements, sea defence works, erosion protection, additional paved areas, mobile plant and IT equipment replacements.
Napier Port continues to maintain a strong balance sheet, repaying $20.5 million of loans and borrowings to end the year with gross drawn debt of $109.5 million.
Napier Port’s Board of Directors has declared a fully imputed final dividend of 6 cents per share, or $12 million in total, bringing the total dividends for the 2024 year to 9 cents per share, up from the 5.25 cents per share of the prior year. The record date for dividend entitlements is 6 December 2024, with a payment date of 18 December 2024.
Outlook
While inflation pressures globally are retreating, regional exporters continue to face elevated uncertainty in key international export markets.
The regional recovery post Cyclone Gabrielle is continuing, and Napier Port looks forward to Pan Pac building to more normal operating levels at its pulp mill during the first half of the 2025 financial year.
Log exports are continuing to flow steadily and there is raised expectations amongst exporters that export market conditions will continue to improve. Napier Port continues to see demand from exporters for storage space and shipping as the supply of maturing logs remains strong.
“The 2025 cruise season is set to be another busy one with 85 current bookings.
“The fundamentals of premium food and fibre remain strong and Napier Port is well positioned with its diverse and resilient cargo base. Our strategic initiatives are supporting our growth and earnings growth momentum.
“Napier Port is in a strong financial position to continue to grow dividends and invest into growing cargo and further developing our capabilities.
“We look forward to providing a further trading update at our Annual Shareholders Meeting on 19th December,” Mr Dawson said.
Further detail on Napier Port’s financial performance for the year ended 30 September 2024 is included in the Annual Report and investor presentation released to the NZX today and available on the company’s investor website at: https://www.napierport.co.nz/investor-centre/
