Port Nelson Limited recently released its financial results for the year ended 30 June 2022, reporting a Net Profit After Tax result of $12 million. 

The result was ahead of expectations, a key driver of the result has been the performance of the Port’s commercial property portfolio, with revaluations contributing $4.1 million. The performance of the commercial property portfolio belies what has been a challenging trading year for the Port’s operations.

Port Nelson’s after-tax operational performance, excluding property revaluations, was $7.9 million, marginally below expectations. The Port’s performance was impacted by volatile container shipping - including a number of vessel omissions, lower log volumes, higher payroll and fuel costs, constrained productivity due to stringent COVID protocols, and an additional $600,000 of COVID-related costs required to ensure Port workers and Te Tauihu were protected from COVID at the border.

Cargo volumes of 3.2 million revenue tonnes were 3% below the budget of 3.3 million, and container throughput of 103,000 TEU (twenty-foot equivalent units) was 7% below the budget of 111,000 TEU.  However, despite lower cargo volumes across the wharf, revenue remained strong at $76.8 million, $4.8 million or 7% above budget. This result was on the back of the solid performance of QuayConnect, the Port’s logistics division, successfully facilitating the movement of cargo during a period of significant disruption for customers.

The Port was pleased to declare a fully imputed dividend of $4.3 million to Nelson City Council and Tasman City Council, the Port’s shareholders.

Throughout the financial year, capital investment was $12.6 million. Critical infrastructure investments included upgrading the log yard (pavement and lighting) and strengthening wharves (both below and above water). Property investments included purchasing three properties, one to facilitate the Slipway project, one a requirement of the noise mitigation plan, and the other a building on land owned by the Port. In addition, design works to support the Slipway and the Science & Technology Precinct development commenced. 

Port Nelson’s CEO, Hugh Morrison, says the results were positive despite the difficulties faced in a challenging year, further highlighting the efforts of the Port Nelson team, who were committed to keeping cargo moving. “The Port Nelson team successfully adapted to the challenges thrown their way during the year; this included mandatory vaccinations, COVID testing, and labour shortages. 

“In addition, shipping and supply chain disruptions put extra pressure on the team. Whilst cargo numbers were down, the results were still a credit to the team for their commitment to move a significant amount of cargo for the region’s importers and exporters, despite the year’s challenges.”

Port Nelson’s 2022 Annual Review, an overview of the Port’s broader performance from the 2022 financial year, will be released in early November 2022.

Highlights:

• Revenue of $76.8m
• Net Profit after Tax of $12m
• Underlying Net Profit after Tax (excluding property revaluations) of $7.9m
• Fully Imputed Dividend of $4.3m
• Capital Expenditure of $12.6m
• 4% Return on Equity
• 3% Return on Assets

Ends

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For media enquiries, contact Jessica Ammundsen – Jessica.ammundsen@portnelson.co.nz - 027304 0865.