NPH & POT: A glance at 2 NZX port stocks

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NPH & POT: A glance at 2 NZX port stocks

 NPH & POT: A glance at 2 NZX port stocks
Image source: David Pimborough, Shutterstock.com

Highlights

  • NZ ports report slower services due to the Omicron outbreak.
  • The ports expect a lower throughput due to disruptions and closed borders.
  • The workforce impacted due to self-isolation practices.

Many ports have warned shipping companies of a slowdown in services due to the spread of the Omicron virus. The services at ports are degraded with some delays according to the ports’ own traffic light system. They expect a lower throughput in the coming weeks as Omicron continues to spread.

Against this backdrop, let's examine 2 port stocks listed on the NZX.

Source: © 2022 Kalkine Media®

Port of Tauranga (NZX:POT)

The Employee Share Purchase Scheme is one way of attracting and retaining employees by making them shareholders. POT announced on Friday that it had provided financial assistance by the way of interest-free loans to its employees under the employee share purchase plan.  It amounts to a total of NZ$ $1,030,463 by the trustee for the issuance of relevant shares. The `relevant shares’ are a total of 169,289. These were allocated to the employees at a 10% discount.

The loans will be repaid by participating employees in regular instalments over three years.  This Employee Share Purchase Scheme was established by Port of Tauranga in 1989 and restated on 26 January 2022. This will enable the enrolled employees to contribute a fixed part of their salary to purchase stocks of their company.
Also Read: Port of Tauranga (NZX:POT): What is its outlook for 2022?

On 01 April, the stock was unchanged at 6.180, at the time of writing.

Napier Port Limited (NZX: POT)

Napier Port is one of the largest ports in NZ. In its volume data released recently, it reported an increase in trade volumes for bulk cargo by 3.4% over pcp and a decline in containerised cargo by 7.7% due to shipping delays.

Also Read: Napier (NZX:NPH): How did it manage to attain record revenue?

Dry cargo exports had reduced by 12% to 16K TEU. Timber export reduced, but wood pulp exports increased year on year.

Timber export was less due to an increase in domestic demand, wood pulp export rose year on year. Reefer export cargo decreased by 5.4% principally due to lower meat export volumes, which were impacted by shipping schedule disruptions and shipping capacity constraints.

According to the update, charter vessel calls increased to 87 from 82 in the quarter but cruise services have been halted and are not expected during the 2021/2022 season.

On 01 April, the stock was trading down by 0.67% at NZ$2.98, at the time of writing.

Bottom Line: Ports have delayed services and the impact of Omicron is widespread. Both the stocks were down.

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