How are these 3 NZX transportation stocks doing in 2022?

Highlights

• NZ’s transport sector has added 5% to the country’s GDP.
• Marsden Maritime reported a 113.4% increase in NPAT to $14.3 million in FY21.
• South Port broke the $10-million threshold for the first time and delivered an after-tax profit of $10.71 million in FY21.

NZ’s transport sector has added 5% to the country’s GDP and has provided a wealth of jobs to New Zealanders. The sector provides jobs to nearly 4% of NZ’s workforce with Auckland hiring 42% of all the transport sector workers.

Goods in New Zealand are mainly transported by the rail, road, water and the air. Transport services and infrastructure reinforce economic activity by providing links for transmission in business and household activities.

Let’s skim through how these 3 NZX transportation stocks are doing this year.

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Marsden Maritime Holdings Limited (NZX:MMH)

Marsden Maritime reported a 113.4% increase in NPAT to $14.3 million and an increase of nearly 15% in revenue from its property and marine operations in FY21. The Company has invested nearly $15 million in the NZ economy and roughly $13 million in the development work on site in the period.

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MMH built 7 new berths at the marina, achieved a record 80% berth occupation at Marsden Cove Marina and completed 4 substantial construction projects.

The Company’s business approach will persist to provide direction and focus for growth. It also has plans to complete a capital structure review of the business and focus on driving growth in non-port areas of activity.

MMH ended the day 0.63% in red to close at $6.26.

South Port New Zealand Limited (NZX:SPN)

NZ’s southernmost commercial deep water port, South Port, broke the $10-million threshold for the first time and delivered an after-tax profit of $10.71 million in FY21, up 13.6% on prior year.

The Company also attained a record container handling volume of 53,750 TEU, up 13% on pcp.

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SPN expects to see record growth in log volumes but expenditure is likely to be reduced in coming years. It also expects earnings to stay consistent with 2021 reported earnings but does not anticipate its container supply chain to improve.

SKL ended the day 0.48% in green to close at $8.37.

Freightways Limited (NZX:FRE)

Package and business mail services provider Freightways delivered robust growth in FY21. The Group’s revenue surpassed $800 million, seeing a growth of 27% and EBITDA witnessing a growth of 30% in the period.

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The Group also employed a new long-term incentive (LTI) scheme in July 2020. The scheme was deployed to encourage employee retention and long-term performance.

FRE ended the day 0.15% in red to close at $12.98.

Bottom Line

The transport sector is facing substantial supply chain interruptions, high labor costs, high freight rates amid the COVID-19 pandemic.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)