The Covid-19 pandemic has not dented Napier Port's plans to expand its facilities.
Napier Port (pre-Covid-19 pandemic). Photo: 123rf.com
The Hawke's Bay port company's net profit is up nearly 15 percent to $18.7 million dollars for the nine months to June, but this includes a one-off tax credit and $2m in wage subsidies.
Its revenue was down by 1.4 percent to $76.6m, as container and bulk cargo volumes fell sharply during the third quarter as a result of Covid-19.
Despite this, the port's chief executive Todd Dawson said pandemic had not held back $30m worth of investment in a new wharf and container depot.
"Our expansionary plans are underway so we're committed to those plans. Obviously, as a result of Covid we've taken certain measures to defer costs or reduce operating expenditure wherever we can but those strategic investments such as the development of 6 Wharf are going very well."
Dawson said the resilience of Hawke's Bay's primary sector had given it confidence to keep investing for the future, as the company needed to look beyond the current state of the pandemic.
Since the dip in container volumes during the first lockdown, Dawson said activity was now back to pre-Covid-19 levels.
Napier Port expected its net profit for the year ending September to be about $20m.
"Beyond the end of the financial year the outlook is still subject to considerable uncertainty. Cruise ship visits are unlikely to resume for the coming cruise season, which traditionally commences in October and extends through summer," Dawson said.
"Meanwhile, it is still difficult to assess how the pandemic will affect demand for key trades from export markets and imports to the region."