Port of Napier posts solid half-year net profit of $18 million

The Port of Napier has posted solid half year profits on strong food exports which it expects to continue despite the Middle East conflict.

Key numbers for the six months ended March compared with a year ago:

• Net profit $18m vs $20.2m
• Underlying profit ex one-offs $17.9m vs $14.8m
• Revenue $84.9m vs $78.1m
• Container volumes +4.8 pct; bulk cargo volumes down 1.5 pct
• Full year underlying forecast earnings $70m to $74m
• Interim dividend 5.25 cents per share vs 4 cps.

The country's fourth biggest port handled more cargo with a rise in container volumes and horticultural exports offsetting a dip in log exports and bulk cargoes.

Chief executive Todd Dawson said the port's diverse range of trade from the region was an advantage.

"It represents our improved operational performance and a season with favourable growing conditions that has resulted in growth in refrigerated container cargo volumes."

Container revenue was up nearly 17 percent to close to $50 million, and bulk cargo income was up nearly 6 percent, but cruise ship visits fell to 54 from 77 the year before decreasing income by more than a fifth.

Underlying profit was up more than 21 percent to $17.9m after last year's final insurance payment for Cyclone Gabrielle damage was discounted.

Dawson said the port had increased its container handling equipment to deal with increased volumes, and was looking to expand container terminal, as well as having a dredge vessel built.

He expected growth for the port to be driven by local food exporters, but said the US-Israel-Iran conflict was yet to have an impact.

"To date we are not experiencing any notable direct disruption to our trade from the current events in the Middle East."

"Notwithstanding underlying global demand for regional exports, we remain mindful of ongoing uncertainty in global markets and increased costs for exporters and importers along with the increased likelihood of higher levels of inflation in the foreseeable future."

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