NAPIER Port has today (21 May) released its financial results for the first half of 2025, reporting strong earnings amid improved trading conditions.
As the freight gateway for New Zealand’s central to lower North Island, Napier said its result was underpinned by a solid uplift in container cargo volumes, a marked increase in DLR and transhipment activity, and the continued benefits of disciplined cost control and effective yield management.
The port’s Chief Executive, Todd Dawson said, “This positive half-year result reflects Napier Port’s strong operational performance under improved trading conditions”.
“The full resumption of Pan Pac’s pulp and timber operations has driven a notable increase in dry export container volumes. Meanwhile, favourable growing conditions led to an earlier apple harvest, boosting refrigerated container throughput.
“Changes to shipping line services also contributed to significantly higher DLR and transhipment volumes compared to the same period last year. In contrast, bulk cargo volumes were softer, primarily due to the absence of windthrown logs that had positively impacted last year’s first half result.”
Mr Dawson highlighted that strong trade volume, together with effective cost control and yield management, is working well for the port alongside investments in infrastructure and additional customer services, which he said gives Napier operating leverage supporting a higher level or earnings.
Revenue for the half year rose 10.6% to NZNZ$78.1 million from NZ$70.6 million in the same period last year, and was led by growth in container services revenue.
Container services revenue for the half year increased 27.2% to NZ$42.7 million from NZ$33.6 million following a 13.9% increase in container volumes to 112,000 TEU, compounded by a 11.7% increase in average revenue per TEU.
However, Bulk cargo revenue for the half year saw a decrease of 2.7% to NZ$25.5 million from NZ$26.2 million, as export log volume decreased 12.7% to 1.36 million tonnes, and total bulk cargo volume decreased 9.2% to 1.71 million tonnes.
Cruise revenue also saw a decrease for the first half, by 8% to NZ$8.2 million from NZ$8.9 million. There were 77 cruise vessel calls in the half year, compared to 88 in the prior year.
Napier’s operating expenses also saw an increase of 4% on the same period last year despite significantly increased container volumes.
Underlying net profit after tax increased by a figure of 33.4% to NZ$14.8 million from NZ$11.1 million in the same period last year.
Reported net profit after tax stood at NZ$20.2 million, a 40.8% increase on the prior year’s NZ$14.3 million, which included a NZ$7.5 million (pre-tax) contribution from the final settlement of the Cyclone Gabrielle material damage and business interruption insurance claim.
On the Port’s outlook, Mr Dawson shared that the outcome of the first half “reflects the dedication of the Napier Port team, who achieved it despite operating with fewer resources than prior years and some equipment availability challenges in the first half of the year”.
“Demand for the region’s food and fibre exports has been strong, and we expect to sustain healthy volume and earnings into the second half of the year,” he said.
“We anticipate continued momentum in containerised wood pulp and timber volumes, provided sector market conditions remain stable. However, we remain mindful of ongoing uncertainty in the log export market, particularly around potential impacts from trade negotiations and broader global market dynamics.
“Our investment programme into infrastructure and capability continues, with renewal and replacement across several areas, including the container terminal transformation project and construction of a new trailer suction hopper dredge in partnership with Port Otago, which will see an increased level of capital investment into our assets in the near term.”
Napier Port has revised its expectations for an underlying result from operating activities for the year to the end of September 2025 of between NZ$59 million and NZ$63 million, assuming a continuation of current operating conditions and excluding insurance claim income.
The Port’s chair, Blair O’Keeffe said, “The Board is pleased to pay a fully imputed interim dividend of 4.0 cents per share, which is increased from the 3.0 cents per share interim dividend paid last year”.
Speaking also on a special dividend, he said, “In addition, to recognise the strong financial position of the Group and improved profitability arising from the finalisation of the Cyclone Gabrielle insurance claim, a fully imputed one-off special dividend of 2.5 cents per share has been declared”.
The Port expects to provide a further update to the market regarding its June quarter trading results during August this year.