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Port’s finances ‘on-track’

Company confident of hitting full-year goal after increasing half-year profit and upper North Island market share.
Posted on 22 February, 2024
Port’s finances ‘on-track’

Port of Auckland (POAL) has reported its net profit after tax (Npat) came in at $21.2 million in the six months to the end of December, up by $400,000 from $20.8m a year earlier. 

This was despite demurrage, or cargo holding, revenue decreasing by $15m compared with the same period last year as supply chain congestion issues have eased.

The company’s half-year results, released on February 22, also show revenue increased from $159.5m to $162.5m over the same timeframe and net debt levels were reduced by $9m to $397.6m.

The figures mean its first-half dividend to Auckland Council is $20m, up 33 per cent from $15m in the same period a year ago.

Roger Gray, chief executive officer, says POAL is also on-track to deliver a full-year Npat of $52m and a dividend of at least $35m.

“We have made significant improvements across the business and remain focused on safely lifting performance, delivering returns to our owner Auckland Council, and improving how we support and engage with our customers and the people of Auckland,” he adds.

“Our first-half profit of $21.2m, considering we had a reduction in demurrage revenue of $15m, shows that the port’s turnaround strategy is working.”

POAL highlights total laden import and exports for the first half increased from 204,088 twenty-foot equivalent containers (TEU) to 225,128 TEU, which represented an eight per cent increase in its upper North Island market share.

It is also on track for record cruise season, including the arrival of two new cruise lines, and lost time injuries reduced by 85 per cent in the half year when compared with a year ago.

Jan Dawson, chair, says the latest results are pleasing given the challenging economic environment and supply chain disruptions over the first half of the 2024 financial year.