Napier Port, a crucial freight hub for New Zealand’s central and lower North Island, is celebrating a surge in growth as detailed in its unaudited financial results for the nine months ending June 30, 2024. The port's recent earnings reveal a significant financial rebound, highlighting a robust performance across its container, bulk cargo, and cruise services segments.

In the third quarter, Napier Port reported a revenue increase of 27.9%, climbing to $36.5 million from $28.6 million in the same period the previous year. This growth was fueled by a 7.4% rise in bulk cargo volume and a remarkable 29.6% increase in container services.

The result from operating activities saw an impressive 64.3% leap to $12.3 million from $7.5 million, bolstered by strategic cost management and a significant uptick in revenue. The underlying net profit after tax surged by 156.7% to $4.8 million, compared to $1.9 million in the previous year. 

Over the first nine months of 2024, Napier Port has demonstrated a strong financial performance with a 15.5% increase in revenue to $107.1 million, driven by the thriving export log and cruise sectors. The result from operating activities rose by 35.1% to $39.6 million, while the underlying net profit after tax grew by 70% to $15.9 million. The reported net profit after tax for this period also saw a substantial rise of 48.2% to $19.1 million. 

Chief Executive Todd Dawson emphasised the ongoing recovery post-Cyclone Gabrielle, stating, “Today’s results reinforce the continuing recovery of regional trade.” Dawson highlighted that the port's strategies in yield management, infrastructure investment, and cost efficiency have driven their earnings upwards, despite regional economic challenges and high energy costs impacting major manufacturing industries in New Zealand.

Container services have been a key growth driver, with a revenue increase of 33.4% for the third quarter and 6% over nine months, despite a slight 2.3% year-over-year decline in container volumes. Bulk cargo revenue also increased significantly, with a 24.6% rise for the nine-month period, heavily supported by increases in log exports.

Cruise services concluded the season in April with a notable impact, contributing $9.1 million to revenue compared to $5.3 million the previous year. The upcoming 2025 cruise season looks promising, though expectations for 2026 suggest a possible downturn in bookings.

Napier Port has invested $8.6 million in capital assets over the past nine months, focusing on terminal enhancements and asset management. Operating cash flows jumped 58.7% to $52.3 million, aided by business interruption insurance receipts following Cyclone Gabrielle and favourable working capital movements. The port's total drawn debt has decreased from $130 million to $108 million by the end of June 2024, maintaining a healthy Debt to EBITDA ratio of 1.87 times. 

Napier Port has maintained its guidance for operating results for the year ending September 30, 2024, projecting earnings between $50 million and $53 million, excluding insurance recoveries. This stable outlook reflects the port's confidence in its long-term strategic planning and recovery efforts.