Napier Port (NZX:NPH) reports drop in profits in FY22

Highlights

• Napier Port announced its full-year results on the NZX today.
• It reported an increase in revenue by 4.6%, but an 11% drop in net profit.
• The company says that FY22 was a successful year for its strategic goals.

New Zealand’s main port for the central and lower North Island regions, Napier Port (NZX:NPH), declared its full-year results today (16 November 2022). It reported resilient performance despite several trading, environmental, and operational disruptions.

The company reported a revenue increase of 4.6% to NZ$114.5 million, from NZ$109.5 million in the prior financial year (FY21), and net profit loss of 11.8% to NZ$20,421 from continuing operations.

The total tonnage shipped across Napier ‘s wharves was 5.39 million tonnes, down 8.1% compared with 5.87 million tonnes in 2021.

The container volumes were also down, by 7.9%, while bulk cargo volumes dropped 7.6% due to operational disruptions.

The company reported that it was able to open Te Whiti, 6 Wharf before schedule and for a construction cost of NZ$171 million, which is below the estimated budget of NZ$173–190 million.

Napier Port Chairman Alasdair MacLeod said that the opening of Te Whiti has been the centrepiece of its achievement – opening of 6 Wharf is an asset for Hawke’s Bay and New Zealand’s supply chain.

He further said that FY22 had been a successful year strategically. During the year, Napier continued to deliver on its commitments to safety, sustainability, and bringing more diversity into the workforce.

Dividend

The board declared a fully imputed final dividend of 4.7 cps, taking total dividends for the 2022 financial year to 7.5 cps, the same as the previous year. The record date for the dividend is 5 December, and the payment date is 15 December.

Funding and balance sheet

Napier Port reported that its balance sheet continues to be in a good position and is able to support the growth of the company. During FY22, the company also issued NZ$100 million of unsecured, unsubordinated 5.52% fixed-rate bonds, maturing in March 2028. The financial year ended with drawn bank lending of NZ$34 million, NZ$100 million of bonds issued, and NZ$46 million in undrawn credit facilities.

Outlook for FY23

The company is cautiously optimistic for the year ahead. Labour constraints and the rising inflation are the main reasons why the company has been cautious. Against this background, the company said that the trade outlook for food and fibre exports remains positive. Cruise ships have returned to Hawke’s Bay after two years, the NSX release said.

The company expects the underlying result from operating activities to be between NZ$42 million and NZ$48 million. Overall, due to the completion of Te Whiti Wharf and careful management of its capital, the company is in a good financial position, the update said.

Stock update

On 16 November 2022, the company’s stock was up 0.71% at NZ$ 2.820, at the time of writing.