Port lifts profit forecast

The number of imported cars handled by Ports of Auckland Ltd (POAL) fell to 118,135 in the first half of the 2023 financial year, down from 129,924 in the corresponding period a year earlier.

The figures have emerged as the company lifted its full-year net profit after tax (NPAT) forecast from $35 million to between $42m and $45m following a strong performance in the six months to the end of December 2022.

POAL’s NPAT for the first half was $20.8m, an increase of 40 per cent from the corresponding period a year earlier when it was $14.8m.

Following the improved financial performance, an interim dividend of $15m will be paid to its shareholder, Auckland Council, up from $2.1m in 2022. 

The POAL board expects to pay a total dividend of $30m for the current financial year, an increase of 111 per cent from $14.2m last year, while also reducing the company’s debt.

It has already committed to delivering an NPAT of $52m in the 2024 financial year, in line with the council’s budget request.

Business highlights

POAL says highlights during the first half-year include:

• Developing a Stevedoring Code of Practice with the Maritime Union of New Zealand and third-party stevedoring companies, C3 Limited and Wallace Investments Limited.

• The container terminal division breaking even at an NPAT level and being on track for a positive result in the second half, compared with a $25m loss in the full 2022 financial year.

• Container throughput increased by 15 per cent from the previous half to 421,375 TEU.

• Multi-cargo operations continued strong volumes with 3.569m tonnes total break bulk. 

• The first cruise ships post Covid lockdowns arrived in August 2022 and more than 90 such vessels are expected by the end of April 2023.

• Committing to donating at least $1.5m over 15 years to Te Moananui o Toi trust for improving the health of the Waitemata and the Hauraki Gulf.

Jan Dawson, chair of POAL, says: “We are very happy with the progress against our three-year strategy and the concentration on safety, customers, efficient operations and financial performance. 

“After the disruption of the last few years, our half-year results show this focus is paying dividends.”

Supply chain challenges

Roger Gray, chief executive officer, says the company is focused on running a safe, profitable and reliable port, and it is also advancing its commitment to sustainability and has made progress towards achieving fair returns on assets.

“We’re doing our part to resolve supply chain congestion and can see the initiatives we’ve put in place are effective,” he adds. 

“To give just one example, during the first half our container terminal throughput improved by around 3,000 TEU a week, compared to the start of the financial year.”

To strengthen New Zealand’s supply chain resilience and certainty for the long term, POAL has obtained resource consent for channel dredging and ongoing maintenance work in the past six months. This ensures it can service the larger vessels expected to call in the coming years.

The port is also working with supply-chain partners such as KiwiRail, trucking companies, other ports and cargo owners to manage the current congestion, recently exacerbated by Cyclone Gabrielle.

“We are in a good position and will be resuming berth windows in March 2023,” explains Gray. “Our commitment to giving shipping companies agreed vessel visit timings and container exchange volumes requires close coordination with shipping lines and other key ports.

“There will be ongoing challenges to the return to berth windows, as we’re still experiencing significant delays or congestion in other New Zealand and overseas ports, and as the North Island recovers from Cyclone Gabrielle.”