NZX AND MEDIA RELEASE
16 AUGUST 2023
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS TO 30 JUNE 2023
NAPIER PORT WELL POSITIONED FOR CARGO RECOVERY IN FY24
Napier Port (NZX.NPH), the freight gateway for the central and lower North Island, today reports reduced earnings for the nine months ended 30 June 2023 as the impact of Cyclone Gabrielle in February weighed on exports from our region.
The company also reports strategies focused on yield management and pricing adjustments linked to investments in infrastructure and additional customer services have supported revenue. They also position the company well for an anticipated recovery in cargo volumes in the new financial year.
“Off the back of a buoyant first half, we anticipated Cyclone Gabrielle would reduce third quarter export volumes and earnings, However, adverse weather in June and July that limited access to our wharves represented a further challenge to our nine months result,” Napier Port Chief Executive Todd Dawson said.
“The lasting effects of the cyclone on cargo volumes are expected to persist into the fourth quarter, but our confidence of a step up in cargo in the new financial year is growing given the progress of the recovery efforts we are seeing in the region.
“Regional infrastructure rebuilding is well underway, assisted by the ongoing financial commitment and prioritisation by government. We are particularly encouraged by the progress made by key customers affected by the cyclone.
“The strong forward bookings for the upcoming cruise season suggest it could be our busiest on record. Interest from shipping lines meanwhile remains high, which is a measure of confidence in Napier Port’s long-term volume growth potential,” Mr Dawson said.
“Meanwhile, prudent financial management focused on the recovery of rising costs, our investments in capacity and new services coupled with our continuing focus on efficiency, value and customer service means we are well positioned to reap the benefits for the expected ramp up in volumes.”
Third Quarter to 30 June 2023
- Revenue for the third quarter fell 19.5% to $27.7 million from $34.4 million in the same period last year, following post-cyclone volume decreases of 28.6% for bulk cargo and 31.6% for container services
- The result from operating activities  decreased 44% to $7.5 million from $13.3 million
- Underlying net profit after tax  decreased 73.4% to $1.9 million from $7 million
- An initial $3.5 million of Cyclone Gabrielle insurance income recognised
- Reported net profit after tax, with the benefit of the insurance income, decreased 40.2% to $4.2 million from $7.0 million
Nine Months to 30 June 2022
- Revenue for the nine months rose 5.7% to $90 million from $85.1 million in the same period last year
- Cruise revenue of $5.3 million on the return of cruise vessels in the period
- The result from operating activities decreased 1.4% to $29.3 million from $29.8 million as the return of cruise ship calls and revenue yield increases were offset by the post-cyclone trade volume declines and cost inflation
- Underlying net profit after tax decreased 34.3% to $9.3 million from $14.2 million as a result of increased depreciation and finance costs following the completion of the Te Whiti wharf investment
- Reported net profit after tax decreased 19.5% to $12.9 million from $16.0 million