Fall in profits at Milford Haven ‘masks a positive performace’
ONE of Wales’ biggest ports has posted a drop of £3m in this year’s trading result. However, the Port of Milford Haven’s chairman says the result “masks” positive performances elsewhere.
The fall has been attributed to the ongoing volatility in the liquefied natural gas (LNG) industry, which saw record low shipments in 2017, and in part to an additional £1m pension service charge due to changes in long-term interest rates.
The Port of Milford Haven’s 2017 Annual Report and Accounts revealed a profit before tax of £2.6m and a turnover of £22.4m.
The Port saw a new harbourmaster at the helm, while a new chairman was also appointed. Chris Martin, who was born and bred in Pembrokeshire, became chairman in August, having served as vicechairman since 2012.
Mr Martin said: “Headline figures do, at first glance, indicate a disappointing trading performance.
“The fall in profit to £2.6m before tax largely reflects the ongoing issues with our core marine business, most specifically the reduction in liquefied natural gas traffic, and we will act on this to manage the associated risks to our business.”
The report highlighted how strategic long-term investments have supported the growth of alternate business streams.
It also demonstrated the role of diversification in stabilising financial performance during a period of extreme volatility in its core operation.
Mr Martin added: “The fall in profits masks the positive performance of the other areas of the Port’s business and is a confirmation of the changes it has been making to deliver its diversification strategy.”
A major investment was completed last year which saw the acquisition of Havens Head Retail Park, which will complement the Port’s extensive property portfolio and become a key part of the Milford Waterfront development.
At Milford Waterfront, the Port is creating a desirable place to live, work and play. It will bring together innovative leisure experiences, smart living and vibrant retail spaces to create nearly 600 new jobs in Milford Haven. The first construction element is now under way.
The Port has been a key force in developing doorstep opportunities for the marine renewables sector and progress achieved by device developers over the past year has been welcomed.
The collaboration between the Port, developers and Pembrokeshire’s high-skill supply chain will continue to drive the industry towards commercialisation.
The Port is working with project partners on delivering the Swansea Bay City Region Deal project, Pembroke Dock Marine. This saw the Port invest £650,000 in the earlystage design and consenting process for the proposed changes to its port infrastructure. The value of the eventual infrastructure changes is not restricted to the marine renewables sector, with clear value to other marine industries.
Trading performance at the deepwater cargo-handling site Pembroke Port saw growth during 2017, with activities such as heavy lift, animal feed and aggregates all contributing to this strong performance.
“Our aim is to further reduce our over-reliance on one industry and to create the right environment for attracting businesses to trade and flourish in Pembrokeshire,” said Mr Martin.
Activities across the Port during 2017 have aligned with its vision to “Build the Haven’s Prosperity”.
Prosperity, Mr Martin says, is greater than just increased financial wealth – it is about developing opportunities for employment, upskilling and enhancing personal wellbeing.
“With extreme volatility in the energy markets, the Port’s diversification strategy has become a central component in delivering this long-term vision.
“We will use our assets to create new economic opportunities and to drive change. We want to create the brightest possible future for the Port and our stakeholders.
“We want our port environment and the businesses that operate here to thrive and to be the bestpositioned to provide rewarding career opportunities for our communities.
“The board will remain focused on taking the right decisions to make this vision a reality while ensuring we promote and deliver our strong core values.”