Port’s profit up $1.6m
PrimePort Timaru has overcome a turbulent end to the financial year to post an almost 40 per cent profit increase.
Even though bulk cargo volumes were down 10.2 per cent because of the Covid-19 pandemic, the port operator announced yesterday an after tax net profit of $5.6 million for the 2019-20 financial year, an increase of $1.6m on the previous year.
The drop in bulk cargo volumes was ‘‘mainly due to a significant decrease in export log volumes’’ a statement from the company, jointly owned by Timaru District Holdings Ltd and the Port of Tauranga, said.
PrimePort chairman Roger Gower said the overall result
demonstrated the company’s resilience and strength.
‘‘Despite a sharp drop in cargo volumes and the shutdown of non-essential operations during the level 4 lockdown, we managed to increase profits,’’ Gower said.
‘‘Our careful and thorough planning over the past two years ensured we were prepared for the emergency and most of our team were able to shift to remote working without a hitch.
The company’s operating revenue increased 5.6 per cent to $24.2m ‘‘due to increased marine income, somewhat offset by the drop in bulk trade volumes’’.
According to the report, operating costs were down $1.5m, or nearly a quarter on the previous year, due to the minimal maintenance works undertaken during the lockdown, the capitalisation of major wharf upgrades and the absence of dry docking.
‘‘Staff costs also decreased 1.8 per cent due to the Covid-19 lockdown,’’ it said.
‘‘Depreciation charges increased 28 per cent on the previous year due to the addition of capital items such as the new $8m tug, Hinewai, delivered in 2019.’’
Chief executive Phil Melhopt promised to keep building on the capability and resilience and grow the port further into the future.
‘‘Our success is due to a dedicated team of highly skilled individuals,’’ Melhopt said.
‘‘Their support and enthusiasm has been much appreciated in a very challenging year, and ensures we are well positioned for any challenges still to come.’’
Melhopt said he was confident in the long-term prospects of the port.
‘‘Our strategic location, transport connections and ongoing investment in capacity put PrimePort in a prime position.
‘‘PrimePort is a key import port for the Mid and South Canterbury regions and, through our alliance with Port of Tauranga, is an efficient marshalling port for South Island cargo going to or from the international hub port at Tauranga.’’
Gower said that due to lockdown the port was unable to progress on some upgrades and maintenance programme according to its original timelines.