Napier Port (NPH) H2 2024 earnings summary

Executive summary

• Achieved record financial results in FY2024, with strong recovery in cargo volumes and robust earnings growth across all trades following Cyclone Gabrielle.

• Fundamentals remain robust, supported by a diverse cargo base, resilient infrastructure, and operational flexibility.

• Investments in infrastructure and people enabled dynamic response to increased demand and volume.

• Closure of WPI's pulp and timber mills offset by increased log exports and cost base adjustments.

Financial highlights

• Revenue reached a record NZD 141.4 million, up 15.9% year-over-year, driven by growth across all trade categories.

• Result from operating activities rose 39.5% to NZD 52 million, reflecting strong cost control and operating leverage.

• Underlying net profit after tax increased by NZD 10 million (94.6%) to NZD 20.7 million; reported net profit after tax was NZD 24.8 million, up 49.7%.

• Business interruption insurance claim post-Cyclone Gabrielle contributed up to NZD 9.25 million to earnings.

• Dividends for FY2024 totaled NZD 18 million (NZD 0.09 per share), up from NZD 0.0525 per share in FY2023, with a gross yield of 5.5%.

Outlook and guidance

• Optimistic about ongoing growth, with strong fundamentals in food, fiber, and cruise sectors and continued baseline cargo recovery expected in FY2025.

• Pricing environment for ARPU growth expected to be more challenging; focus shifting to cost management and volume growth.

• Elevated capital expenditure expected to continue into next year, with some lumpy major maintenance projects.

• 2025 cruise season expected to remain busy with 85 bookings.