Increased ship visits helped Port Taranaki post a record net profit after tax of $13.87 million for the 2022-23 financial year. Photo: Supplied / Port Taranaki
One-off extraordinary items has helped Port Taranaki make a record profit for the 2022-23 financial year.
For the year ended 30 June 2023, the port recorded net profit after tax of $13.87 million, up on the $9.91m recorded in 2021-22.
This result exceeded the record net profit after tax of $12.24m recorded in the 2019-20 year.
Revenue rose 12 percent from $51.46m to $57.43m.
Port Taranaki chief executive Simon Craddock said an increase in ship visits, improved bulk liquids trade, more offshore support work, and several one-off extraordinary items helped it achieve the record profit.
"Notwithstanding the contribution of some one-offs, this is a fantastic result. It highlights the hard work put in by the Port Taranaki team to support our customers across a range of sectors and make it as easy as possible for them to trade through our port,
"It also underlines our port's strengths of building strong relationships, the important assets and skills we have at port, and the expertise, knowledge and experience of our marine services team to efficiently and professionally provide valuable services off the West Coast."
Port Taranaki chief executive Simon Craddock. Photo: Tom Roberton / 2015
Vessel visits for the year were 293, an increase of nine on the previous year, and the highest number of visits in eight years.
This was in part due to the start of new coastal shipping services, with smaller coastal vessels calling regularly at port, and because of the closure of Marsden Point oil refinery, resulting in an increased number of part loads of refined fuel oils and bitumen coming to port.
Liquid bulk trade increased 101,000 tonnes to 2.82 million tonnes, with methanol trade improving 116,000 tonnes to 1.71 million tonnes.
"Methanex continues to invest in its site, including turnaround maintenance in July, which is encouraging and demonstrates the company has continued confidence in its New Zealand operations," Craddock said.
"The gas sector remains incredibly important for New Zealand energy resilience, and has been acknowledged as a critical transition fuel to a net-zero future. We're here to support the next phase of gas, and our offshore support work has increased in the past year in line with an increase in life-extending activity at gas fields."
Port Taranaki's result was boosted by several one-off extraordinary items totalling $1.58m - an insurance payout from damage caused by Cyclone Dovi, the termination of a pipeline lease, two tug charters, a visit to Port Taranaki by the HMNZS Aotearoa, and the visit of the Helix Q7000 well intervention vessel as part of the Tui oil field decommissioning.
During the 2022-23 financial year, Port Taranaki completed the $16m freshwater firewater system on the energy products wharf, the Newton King Tanker Terminal. Photo: Pip Guthrie
Overall trade was 4.69 million tonnes for the 2022-23 year.
At 711,000 tonnes, dry bulk trade was down 108,000 tonnes on the record trade of 819,000 tonnes the previous year. Several factors contributed to its reduction, including rising input prices and finance costs, softening of farm returns and good grass growth.
Although down slightly - 29,000 Japanese Agricultural Standard (JAS) to 1.09 million JAS - log trade through Port Taranaki was relatively strong given that there have been difficulties for the forestry sector in the past year.
"A downturn in the Chinese construction industry impacted demand, Cyclone Gabrielle impacted supply, and high interest rates impacted harvest crews in New Zealand. This has resulted in reduced log volumes nationally, but we're very pleased that log exporters have sent volumes through Port Taranaki comparable with 2021-22," Craddock said.
Operating expenses for the 2022-23 year were $29.97m, up $195,000, driven by personnel, energy and insurance costs. This was offset by repairs and maintenance costs, which were down $1.06m to $4.29m, due to consenting delays impacting roading maintenance.
The Port Taranaki Board of declared a final dividend for the year of $4.5m, taking total dividends paid to shareholder the Taranaki Regional Council to $8.5m, an increase on the $8m paid in the last financial year. These dividends help ease the rates burden on regional ratepayers.