Napier Port has posted a slightly reduced profit on flat revenue and continued Covid-related disruptions.
Napier Port (file). Photo: 123rf
The company's half-year profit to the end of March was $10.6 million compared with $12.4m the previous year which was lifted by some one-off items.
Cargo revenue was slightly ahead of the year before at $52.6m as a rise in bulk cargo, primarily logs, made up for the lack of cruise ships, while container traffic was steady.
Napier Port chair Alasdair MacLeod said the diversity of its trade had helped the port through the pandemic.
"The diversification of trades and relative stability of earnings this provides to Napier Port are a key reason why we have been able to look through the current Covid-19 turmoil and continue to invest in the infrastructure that will support our region for the longer term."
The halt to cruise visits cost the port $4m, but a 21 percent rise in log exports, and changing mix of container traffic had offset that.
Chief executive Todd Dawson said the port was still feeling the effects of disrupted supply chains and shipping services, with 26 container ships missing scheduled calls.
"Schedule changes and interruptions have resulted in volatile container flows and cargo owners struggling with shipping container equipment and space availability.'
He said containers have stayed longer at the port, taking up space.
The port is currently building a new wharf, which MacLeod said was on time and on budget.
MacLeod said the port's catchment area was providing growing volumes of fruit and other produce, although the shortage of seasonal labour made the forecasting of future trade unpredictable.
"Demand for the region's food and fibre exports remains robust. However, notwithstanding the government's recent moves to increase the availability of seasonal labour in the future, the impact of worker shortages on seasonal export industries remains uncertain."
"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," he said.
The company confirmed earlier forecasts of underlying full year earnings of between $39m and $42m, and resumed dividends with an interim payout of 2.8 cents a share.