Port’s profit rebounds

Car imports coming through Auckland site fall to three-year low but remain above levels when Covid-19 first struck.

Posted on 24 August, 2023

Port of Auckland Limited (POAL) has bounced back with a net profit after tax of $40.5 million for the year ending June, recovering from a $10.3m loss in the previous financial year.

The results take the dividend POAL will pay Auckland Council for the year to $30m, an increase of $15.8m on the prior year and $13m more than originally forecast.

Other highlights in the company’s annual report, which was released on August 23, include underlying net profit after tax climbing $20.2m to hit $45.2m in the 2023 financial year.

Revenue increased to $320.2m and was up from $265.3m year-on-year, while net debt levels fell from $449.9m to $407.5m over the same timeframe.

More than half of POAL’s earnings in the 2023 financial year came from container terminal operations as the number of TEUs (20-foot equivalent containers) rose from about 812,000 to 818,810.

Vehicle and bulk cargo volumes dropped from the previous year, with the number of cars crossing the port coming in at 228,588 units. This was lower than the previous two years but higher than the 2020 financial year when Covid-19 first disrupted operations.

More than 170,000 cruise ship passengers also arrived in Auckland as cruises returned to the port after an absence of two years.

Jan Dawson, POAL chair, says the annual results reflect the execution of the first year of the company’s three-year “regaining our mana” strategy and the hard work of the executive team and workers at the site.

“The board is pleased to return an improved dividend to the shareholder, Auckland Council, for the year,” she adds.

“We anticipate continued improvement over the next three years as we work towards providing a dividend equal to a million dollars a week in FY26.”

Roger Gray, chief executive officer, says the past year has been transformative for the port and that is reflected in its strong financial results, the transformation of its employee relations, and the safety and wellbeing of its people.

“As we reflect on the port’s turnaround and successful results, I want to thank the team of 774 who have worked exceptionally hard for our customers, for Aucklanders and for each other during the last year,” he adds.