Port’s profits increase

Port of Tauranga Ltd has announced its net profit after tax for the six months ended December 31, 2024, totalled $60.2 million, a 27.4 per cent increase on the same period a year ago. 

The company notes earnings and trade volumes also recovered well after a challenging start to the previous 2024 financial year.

Trade volumes increased 6.9 per cent to 12.4 million tonnes and containers increased 10.2 per cent to 591,934 twenty-foot equivalents (TEUs) compared with the prior corresponding period. 

The half-year announcement to the NZX says the port’s focus on service delivery resulted in further reductions in vessel wait times and productivity improvements across the port are being implemented. 

“Further gains remain challenging due to vessels continuing to arrive off schedule and berth capacity shortages, which also make it difficult to accommodate new shipping services,” it adds. 

“The capacity constraints can be alleviated with the construction of the Stella Passage development, and an application is now being prepared under the new fast-track legislation.” 

Other highlights for the six-month period include ship visits climbing 2.4 per cent to 690, imports climbing 14.9 per cent to 4.4 million tonnes and exports going up three per cent to eight million tonnes. 

At the same time, operating revenue rose 12.5 per cent to $225m and earnings before interest, tax, depreciation and amortisation went up 17.9% to $114.3m. Operating costs grew 7.2 per cent to $113.9 million.

The company declared an interim dividend of seven cents per share, compared with six cents per share a year ago. 

Julia Hoare, chair, says the strong trade and financial results were positive amid ongoing depressed economic conditions.

 “Whilst the domestic economy remains sluggish, we are seeing what we hope are the early signs of a recovery, particularly in bulk imports and most export categories.” 

Leonard Sampson, chief executive, adds the port has proven its resilience thanks to diverse income streams and a focus on costs, and is preparing for future growth and even greater resilience through its investments in infrastructure for capacity. 

Outlook

Hoare says the domestic economic outlook remains challenging in the short-term, with the international geopolitical situation still unpredictable. 

However, there is steady demand for New Zealand exports and the company “remains well-positioned for the economic recovery”. 

Given the strong first half performance and steady export trading conditions, the port has lifted its profit guidance range issued in October.

It now forecasts underlying group earnings will be between $115m and $125m for the 2025 financial year, compared with underlying group profit of $102.7m in the year prior.