19 Nov 2019

Napier Port's first public result falls 61pc

5:04 pm on 19 November 2019

Napier Port has delivered a better than expected full year profit, although it's down on the year earlier.

Container ship in commercial port of Napier, New Zealand.

Photo: 123rf

The port's net profit fell 61 percent in the year to September, to $6.8 million, but 21 percent ahead of the company's forecast when it listed on the NZX, earlier this year.

Revenue rose 8.6 percent to $99.6m as bulk cargo, container volumes, and cruise services increased.

The result incuded $6.4m in costs associated with listing and changing its capital structure, and writing down the value of its investment in Manawatu Inland Port.

Napier Port chair Alasdair MacLeod said the decision to list 45 percent of the company was worthwhile.

"This move has seen us welcome more than 9000 new investors to the Napier Port share register, including 97 percent of our employees, and will allow us to extend our near 150-year record of connecting Hawke's Bay and the surrounding regions with the people and the markets of the world," Mr MacLeod said.

"We are now well-placed to commence work on the centrepiece of our strategic investment programme, the new multi-purpose wharf, 6 Wharf, early next year."

The port raised $234m from listing, some of which was used to pay down some debt and fund the new wharf development.

Napier Port spent $17.6m in the year, including buying more refrigerated containers and a third tug boat.

It had more cash on hand than expected after delaying some projects.

The Hawke's Bay Regional Council still owned 55 percent of the port.