Port of Napier Records Strong Result

Press Release – Port Of Napier Ltd

The Port of Napier continues to stamp its position as the leading port in Central New Zealand, announcing record growth.

Port of Napier Records Strong Result

The Port of Napier continues to stamp its position as the leading port in Central New Zealand, announcing record growth.

It has increased total throughput by 6.6 percent to a record 3.6 million tonnes and exports have risen by nearly ten percent, reaching 2.865 million tonnes.

The Port has also announced a tax profit of $10.86 million, up by $2.17 million on the previous financial year’s normalized result.

The increase in profit was achieved from revenue of $54 million, which was 11 percent up on last year.

The revenue increase was due to a record cargo tonnage of 3.643 million tonnes and a record container throughput of 188, 081 TEUs (Twenty Foot Equivalent Units).

Port of Napier chairman Jim Scotland stated that “ultimately success for the Port of Napier is linked to its operational capabilities. The Port is striving to deliver further productivity gains and operating efficiencies for customers as we position ourselves for the future.

“The results achieved in 2011 prove that Napier’s strategic approach is working,” Mr Scotland said.

Port of Napier chief executive Garth Cowie said prolonged global economic difficulties have strongly influenced patterns of many New Zealand and Hawke’s Bay businesses during 2011.

Mr Cowie added that food and fibre exports had weathered the international financialcrisis and are beginning to prosper.

He said a notable current trend has been the significant investment in additional capacity byHawke’s Bay based companies.

“The port is buoyed by the manufacturing and distribution expansion of locally based businesses such as Etika Dairies, Heinz Watties, McCain Foods, Ravensdown and Pan Pac Forest Products.”

2010/11 Annual Result Highlights

• A 6.6 percent rise in total throughput – to a record of 3.643 million tonnes

• 9.4 percent growth in exports, reaching 2.865 million tonnes.

• The most prominent export growth was in logs, breaking through the annual million tonne mark for the first time at 1038 million tonnes.

• Container throughput rose 4% to 188,018 TEU’s for the year

• A total of 570 vessel calls were reported (580 previous year)

• Charter vessels handled increased to 273

• Reduction of accident frequency rate and introduction of a health and safety programme ‘Just Safety Culture’ focused on Zero Harm.

Mr Cowie said the port’s business growth will continue to be critical for central New Zealand along with the positioning as the ‘pivotal port’.

During the year, the Board of Directors also approved further investment in additionalcapital dredging to extend its operating window to 90 percent on all tides. A major upgrade of on-port rail lines is underway.

The port also now boasts two of the most powerful harbour Voith tractor tugs in New Zealand with the arrival during 2011 of the new tug Te Mata.

A significant concern for the port is the dramatic increase on expenditure pressures such as a 35 percent increase in electricity and line charges and a $1.2 million increase (400 percent) in earthquake and tsunami insurance premiums.

The Port will pay a final dividend of $2.883 million to its 100 percent shareholder Hawke’s Bay Regional Council. This figure, together with the interim dividend, brings the total dividend payment for the 2011 calendar year to $5.710m.

Results in Brief

2011 2010
Revenue $54.131m $48.761m
EBIT (earnings before interest and tax) $18.771m $15.095m
Surplus after taxation* $10.864m $8.691m*
Shareholders Funds $102.958m $99.487m
Total Assets $175.374m $168.621m

(*normalized result after backing out the deferred tax charges from the year before).

Mr Scotland highlighted that the strong performance has continued in the first two months of this financial year, both from further container and bulk cargo growth.

“Our East Coast location, close to New Zealand’s main international shipping lanes together with excellent land transport links enables the most efficient pathway to and from global markets for an increasing range of exports and imports within Central New Zealand,” Mr Scotland said.

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