Port’s profits jump by $10m

Port of Auckland Ltd (POAL) has released a stronger than expected annual result with underlying net profit after tax coming in at $55.2 million, up by $10m, off the back of revenue growth and gains in market share.

The directors have also announced a final dividend payment of $20m to Auckland Council, which brings declared dividends to $40m for the year – also an increase of $10m on the 2022/23.

The company’s revenue climbed to $339m, up from $320m, while its net-debt levels fell to $375.8m from $407.5m. Return on equity rose from 4.6 to 5.6 per cent.

In the 12 months to June 2024, POAL recorded a 56 per cent reduction in days lost to injury compared with the prior year, and had a record cruise season with 133 ship calls and 335,290 passengers.

The company also won the Deloitte Top 200 most improved performance award and the Human Resources Institute of NZ’s future of work award.

Its operational improvement team, co-led by port management and the Maritime Union of NZ (MUNZ), has seen significant performance improvements at the container terminal. For example, June 2024 was the strongest month in three years with more than 70,000 TEUs handled.

In addition, the company worked collaboratively on Auckland’s long-term plan, signing a tripartite agreement with the council and unions, which were represented by MUNZ, to secure the port’s future.

POAL’s chair, Jan Dawson, says the results for 2023/24 reflect the company’s strong operational performance in a tough economic environment.

“At a time when volumes across the industry have been significantly lower, the results highlight the port’s improvement in the container terminal, market-share growth and well-controlled costs,” says Dawson, pictured.

“I’m particularly pleased with the safety improvements. We’ve been through a significant safety culture turnaround over the past couple of years. The results are a testament to hard work and engagement by staff. In the 12 months to June 2024, we saw a 56 per cent reduction in time lost due to injury.

“The board has approved a dividend to Auckland Council of $40m for the year, $5m more than committed in the port’s statement of corporate Intent. We take our role as a council-owned organisation seriously and are proud to deliver more for Aucklanders.

“We were pleased to work collaboratively with the mayor, council and unions on Auckland’s long-term plan, ensuring positive outcomes for Aucklanders while securing the port’s future, providing certainty to customers and employees.”

Roger Gray, chief executive officer, is proud of how the team has worked together to deliver for the city.

“Two years ago, we set out our three-year ‘regaining our mana’ strategy,” he explains. “We have largely achieved this in two years and are now focussed on the next phase, ‘strengthening our mana’.

“We remain committed to safely lifting performance, delivering better returns to Auckland Council, and improving how we support and engage with our customers – all while being a good neighbour to those who live and work close by.

“While we’ve seen softening in the bulk and break-bulk volumes, we have had a record cruise season, and the container terminal performance has improved with our volume in laden imports and exports lifting by seven per cent.

“During the year we have also made progress towards our sustainability goals. We’ve reduced our emissions, are investing in solar panels, which will provide around six per cent of our power consumption, and are continuing to electrify our fleet.”

The latter has included POAL ordering its first electric empty container handler. It has also progressed reforestation of land at Awhitu Peninsula with 50,000 natives planted this season.

“During the year, ports across the country moved to have Maritime New Zealand [MNZ] as the sole regulator,” adds Gray. 

“We have worked closely with MNZ on this transition and were delighted it quickly adopted a national code of practice for stevedoring, which is being rolled out. This supports our efforts to have consistent practices across the port and industry, ensuring safer operations.

“Finally, I want to recognise the port leadership team and our workforce who have looked out for each other’s safety, and delivered exceptionally for our customers and Auckland this year.”