Photo: Supplied / Port of Tauranga
The Port of Tauranga has increased its profit amid slowing cargo volumes and higher costs.
Key numbers for the 12 months ended June, compared with a year ago:
- net profit $117.1m .vs $111.3m
- revenue $420.9m vs $375.m
- cargo (tonnes): 24.7m vs 25.6m
- final dividend 8.8 cents per share vs 8.2cps
Company chair Julia Hoare described the result as a year of two halves.
"Results in the first half of the financial year were assisted by an increase in container transhipment, as well as the return of cruise ships over the summer.
"In the second half of the year, the impacts of extreme weather events were felt across the North Island. Port of Tauranga was fortunate to not sustain any damage, but transport networks were disrupted, and some cargo volumes impacted."
The storms affected some produce exports such as kiwifruit, but there had been an increase in log exports because of early harvesting of some cyclone-damaged trees.
However, the slowing economy resulted in reduced container volumes, which fell 5.1 percent on the year before, with overall import volumes down 7 percent and export volumes down 1.5 percent.
Operating costs rose 15.6 percent to $210.6m, with inflation driving higher labour and fuel costs. It was also facing higher rail costs after a renegotiation of the port's agreement with KiwiRail.
Chief executive Leonard Sampson said the port's diversified cargo range had helped to insulate earnings, and the newly opened Ruakura inland port near Hamilton would be a significant driver of business in the future.
"Key export commodity volumes remained strong over the past 12 months, with the slowdown in import container volumes providing some breathing space after an erratic couple of years."
He said the slowdown was continuing as the global economy and consumer spending in New Zealand slowed, which would dent import demand and container traffic.
"The company expects the current global economic conditions and softening commodity prices to continue to affect cargo volumes, while inflationary pressures will continue to impact costs."
Sampson said the port was confident of a positive decision from the Environment Court on the expansion of its container berthage and handling, which has been planned and under consideration for several years.