Napier reports ‘milestone’ financial year

NEW Zealand’s North Island port of Napier has declared a strong result for FY 2025, underpinned by strong container cargo volume increases and active yield management and cost control over several years.

Releasing the annual report last week board chair Blair O’Keeffe said: “We are pleased to build on last year’s strong growth by delivering another step-up in financial performance that demonstrates Napier Port’s capability to deliver with improved operating conditions.

“As the region’s post-Cyclone Gabrielle recovery continued during the year, together with a favourable growing season, container cargo volumes have grown, and the operating leverage developed over recent challenging years saw a set of milestone financial results achieved.”

Revenue for the 2025 financial year increased 11.6% to NZ $157.7 million from $141.4 million in the previous year, with revenue growth across containers and bulk services.

Container volumes increased by 9.1% to 250k TEU from 230k TEU. The increase was driven by higher export timber on Pan Pac’s return to full operations, a stronger apple season and higher restow and transhipment activity following service changes among shipping lines.

Container services average revenue per TEU increased by 9.2% compared to the prior year due to container mix changes, tariff increases, and improved container depot and Port Pack revenues.

Bulk cargo volume decreased 1.7% to 3.41 million tonnes, from 3.47 million tonnes a year ago. Log export volumes decreased 5.8% to 2.7 million tonnes as the prior year contained logs sourced from central North Island windthrown forests. Bulk imports increased 23% to 0.63 million tonnes due to increased fertiliser and oil product imports.

Bulk cargo average revenue per tonne increased by 6.5% compared to the prior year, primarily due to changes to cargo mix and vessels, together with tariff increases.

Cruise vessel visits to Napier Port decreased to 78, from 89 vessel calls in the prior year, and contributed $8.3 million in revenue, which was 9% lower than the prior year.

The result from operating activities increased 23.5% to $64.2 million, compared with $52 million in the previous year, as the revenue increase of $16.4 million exceeded operating expense growth of $4.2 million.

The final settlement of the Cyclone Gabrielle business interruption insurance claim contributed a further $7.5 million to earnings in the period, which was partly offset by valuation write-downs of property, plant and equipment, the port said.

Reported net profit after tax of $30.9 million was a 24.4% increase on the prior year’s $24.8 million. Underlying net profit after tax, excluding net insurance proceeds, non-recurring asset write-downs and tax impacts, increased 36.5% from $20.7 million to $28.3 million.

Chief executive Todd Dawson said it was pleasing to see many of the region’s cargo owners, who produce the high-value food and fibre products exported, benefiting from good growing and improved market conditions during the year.

“Our team responded dynamically to increased container activity and met the challenge of limitations on crane availability during some of our busiest months to keep customers’ cargo flowing. This was reinforced by improved customer satisfaction survey results during the year. 

“In the short term, we are increasing investment in our existing mobile harbour crane fleet and mobile plant replacements. We are committed to upgrading our operational capability and capacity, and we have several strategic projects underway to support this,” Mr Dawson said.