A container ship in the port of Napier. Photo: 123rf
Napier Port has reported reduced earnings as exports from the region were affected by Cyclone Gabrielle.
The company said net profit after tax for the nine months ended June fell 19.5 percent to $12.9 million, from $16m in the same period a year ago.
Revenue for the period rose 5.7 percent to $90m, while underlying profit fell by more than a third to $9.3m due to increased depreciation and finance costs following the completion of its Te Whiti wharf.
"Off the back of a buoyant first half, we anticipated Cyclone Gabrielle would reduce third quarter export volumes and earnings. However, adverse weather in June and July that limited access to our wharves represented a further challenge to our nine months result," Napier Port chief executive Todd Dawson said.
"The lasting effects of the cyclone on cargo volumes are expected to persist into the fourth quarter, but our confidence of a step up in cargo in the new financial year is growing given the progress of the recovery efforts we are seeing in the region," Dawson said.
Napier Port also recognised $3.5m of insurance proceeds related to claims from Cyclone Gabrielle during the third quarter.
Container volumes for the nine months decreased 10 percent to 175,000 TEU (20-foot-equivalent units).
Bulk cargo volumes for the period were 2.3m tonnes compared to 2.7m tonnes a year ago.
Log export volumes for the period fell by 16.1 percent to 1.8m tonnes, due to adverse weather, damaged roads and weak demand, the port said.
The port said it was well positioned for a recovery in cargo volumes in the new financial year.
"Prudent financial management focused on the recovery of rising costs, our investments in capacity and new services coupled with our continuing focus on efficiency, value and customer service means we are well positioned to reap the benefits for the expected ramp up in volumes," Dawson said.
The company said guidance for underlying earnings for the year ended September remains unchanged at between $34.5m and $36.5m.
