Chief Executive Todd Dawson said: “Napier Port has delivered a strong financial performance in the third quarter and across the nine-months period. The result is underpinned by sustained growth in trade volumes, supported by long-term yield strategies and disciplined cost management. Good growing
conditions and an early apple picking season delivered strong refrigerated container volumes, changes to shipping line services resulted in higher DLR (discharge, load, restow) and transhipment container volumes and Pan Pac’s return to full pulp and timber operations increased dry export container volumes. As outlined at the half year, we will be increasing capital investment in the near term linked to our investment programme focused on infrastructure and capability enhancement, and asset renewal and replacement.”
Financial results
Container services
Container services revenue for the quarter of $29.4 million increased 21% from $24.3 million in the same period last year. For the nine months, container services revenue increased by 24.6% to $72.2 million from $57.9 million as higher container volumes were amplified by higher revenue per TEU (Twenty-foot equivalent container unit).
Average revenue per TEU for the nine months increased 9.9% to $373 from $339 in the same period last year. This was driven by higher Port Pack and Depot contributions, container mix and tariff increases.
Container volumes for the quarter increased 12.7% to 81,000 TEU, led by higher apple exports, general cargo imports, and empty containers to support export cargo. For the nine months, container volumes increased 13.4% to 194,000 TEU from 171,000 TEU in the same period last year.
Bulk cargo
Bulk cargo revenue for the quarter increased 10% to $12.3 million from $11.1 million in the same period last year, as bulk volumes increased 2% to 0.78 million tonnes. For the nine months, bulk cargo revenue increased by 1.1% to $37.7 million from $37.3 million, while volumes decreased 6% to 2.49 million
tonnes.
Log export volume for the quarter increased by 6.1% to 0.68 million tonnes, and for the nine-month period decreased by 7.3% to 2.03 million tonnes. Prior year volumes included logs sourced from central north island windthrown forests.
Average revenue per tonne for the nine months increased 7.5% to $15.16 from $14.10 in the same period last year, driven by changes to cargo mix and vessels, together with tariff and levy increases.
Cruise services
The cruise season completed in May with 78 vessel calls and over 108,000 passengers visiting the region, contributing $8.3 million to revenue. This compares to 89 vessel calls contributing $9.1 million to revenue in the prior comparative period.
There are currently 61 cruise vessel bookings for the upcoming 2026 season.
Operating results
The result from operating activities for the third quarter increased 44.6% to $17.7 million from $12.3 million in the prior year period, as the third quarter revenue increase of $6 million exceeded the increase in operating expenses of $0.5 million.
The result from operating activities for the nine months increased 28.4% to $50.9 million from $39.6 million. Positive operating leverage was demonstrated with higher container volumes driving higher revenue of $13.5 million, and effective cost management limiting the increase in operating expenses to $2.3 million.
Underlying net profit after tax for the third quarter increased by 75.6% to $8.4 million from $4.8 million in the same period last year. For the nine months this increased by 46.1% to $23.2 million from $15.9 million primarily due to the higher operating result.
Reported net profit after tax, inclusive of Cyclone Gabrielle insurance claim net income and income tax changes in the prior year, for the third quarter increased 77.4% to $8.5 million from $4.8 million in the same period last year, and for the nine months increased 49.9% to $28.6 million from $19.1 million.
CAPITAL MANAGEMENT
Over the nine-month period, Napier Port has invested $19.1 million in capital assets, including progress payments on the dredge vessel build, initial spend towards the container terminal transformation project, mobile plant replacement and major maintenance, and site asset management works.
Napier Port is expecting to invest approximately $120 million [4] across its 2025 to 2027 financial years towards asset replacement and capacity and growth projects. Approximately $30 million is expected to be deployed during the current financial year.
Operating cash flow increased by $1.6m, or 3%, to $53.9 million from $52.3 million in the same period last year. The increased operating cash flow was after an increase of $9.1 million in cash tax payments between the periods and was supported by $8.8 million net ($7.5 million in the prior period) of material
damage and business interruption insurance income receipts.
Napier Port ended June 2025 with total drawn debt of $107 million, down from $109.5 million at the end of the 2024 financial year, with undrawn bank facilities of $73 million, and with a Debt to EBITDA ratio of 1.48 times.
[4] Future capital investment is subject to change and approvals
