Our local port company released its financial results yesterday for the 12 months to 30 September. Despite the challenges of Covid-19, which is wreaking havoc on the global shipping market, Napier Port is doing better than just weathering the storm, it’s thriving. 

All the key performance measures are moving in the right direction, which will come as welcome news to the many local shareholders from the Bay, who have backed the Port since it its 2019 IPO. Resilience and diversity of its trade portfolio continues to mitigate the effect of container shipping disruptions and the absence of cruise ship visits. 

The Port’s key capital project, the imaginatively named 6 Wharf, is ahead of schedule and at the very low end of budget expectations, reflecting strong partnerships, operational discipline, and cost control.

CEO Todd Dawson is delighted with the progress made on 6 Wharf.

“This has been achieved through tight discipline right from the start. The decision to invest … and to fund that through the IPO was based on a sound business case. This approach has continued into operational discipline which is what gave us resilience to stay on track and on budget, despite two periods of lockdown during construction to date. The partnerships we have developed with our key contractors, HEB and others, have also delivered on-the-ground efficiencies.

“Our expected cost range has reduced to $173-179 million from $173-190 million – but we still recognise that material risk in the project remains,” he says.

6 Wharf is now projected to be operational in the April-September 2022 window, earlier than the original expected completion in October-December 2022.

After last year’s staff bonus and executive incentives were pulled, due to Covid-19, Port workers will welcome this year’s employee recognition scheme payment of nearly $2,800, paid in a mix of Port shares and cash, and in recognition for their hard work.  

Dawson says: “This year is the first time our employee recognition scheme includes shares, together with a cash payment. We believe everyone who works hard for our business should be able to have ownership in it as well and enjoy the benefits of a safe, successful and profitable business.”

And as for dividends, the Board has declared a final dividend of $9.4 million, or 4.7 cents per share, bringing total dividends to 7.5 cents per share for the 2021 financial year, with a payment date of 16 December. 

To read the Port’s profit announcement in full visit https://www.napierport.co.nz/fllyr-napier-port-2021-annual-results/

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