Media Release: Port Nelson stands strong with mid-year results
Port Nelson Limited has ended the first half of the financial year, from 1 July to 31 December 2020 in a strong financial position and makes good progress against health and safety, environmental, and community targets as reported in its recently released Interim Financial Report.
Port Nelson reported an interim Net Profit after Tax of $4.3M compared to $3.7M for the same period last year. Revenue was $35.7M, up $2.1M compared to the same period last year.
Hugh Morrison, Port Nelson’s CEO, comments on the Port’s strong financial position, “we have seen an increase in revenue due to the performance of the Port’s fourth-party logistics and supply chain solutions provider, QuayConnect,” explains Hugh, “the Port also engaged in cost-saving measures which saw a reduction in overall spend. Based on these results we are pleased to announce an interim dividend of $1.5m was paid to our shareholders”.
Cargo volumes (revenue tonnes) and container throughput (twenty-foot equivalent units) continue to remain strong, reporting results of 1.59M and 53.17k respectively, compared to 1.61M and 52.25k for the same period last year. Log export volumes represented 34% of total cargo volumes. The Port has seen the log export market recover from COVID-19, driven by low stock levels in China and strong export prices.
The Port has been impacted by world-wide shipping congestion, and vessel scheduling volatility. “The disruptions continue to impact container and cargo movements, we expect to see this influence our year-end results,” comments Hugh, “the Port appreciates that this volatility is leading to higher cargo charges from shipping lines which falls heavily on importers and exporters. The team continue to show resilience and adapt to these ever-changing conditions, ensuring cargo flow disruptions are kept to a minimum.”
The Port has been facilitating COVID-19 testing onsite with a number of Port employees, specifically frontline border employees, requiring testing each week. “The team has had an overwhelmingly positive attitude towards required testing and the Port continues to safeguard the community with rigorous procedures,” explains Hugh. “The Port has also focused on Health & Safety in the past 6 months, these efforts have achieved results that were better than expected, this is seen with our injury statistics which have reduced by over 60%.”
Port Nelson continues to be active in facilitating regional prosperity through community sponsorships. So far this year, the Port has sponsored a range of community organisations and initiatives across Te Tauihu to a total of $71k. Port Nelson also signed on to sponsor the Tasman Mako, including sponsoring the newly named Port Nelson Rippa Rugby Tournament for a 3-year term under the Port Nelson brand.
The Capital Works programme at the Port continues. “Geotechnical findings are currently being considered regarding the widening of the Port entry channel,” comments Hugh. “In December, the new replacement crane was commissioned, which will result in reduced fuel and carbon emissions. The increased lifting capability from one 20-foot container to two will significantly reduce the number of crane movements at the Port.” Work on replacing and strengthening 100m of Main Wharf North continues, the Port expects the work to be completed later this financial year.
Port Nelson stands strong with its mid-year results. Looking forward the Port is forecasting a drop in apple, kiwi fruit, and wine volumes due to natural events that have impacted imports and exports. Despite this, the Port expects to sustain a strong financial performance and remains on target to deliver its forecast full year-end dividend to shareholders.
Highlights of the Interim Financial Report are
- Revenue of $36 million
- Net profit after taxation of $4.3 million
- Total cargo volumes of 1.6 million tonnes
- Container volumes of 53,000 TEU
- Fully imputed interim dividend of $1.5 million
Media enquiries, please contact:
Jessica Ammundsen (Marketing and Communications Advisor)