Port Company profits down 33%

Lyttelton Port Company’s profits are down, with a market slowdown and increased costs blamed.

The port reported its net profit after tax for the six months to December was about $8 million – 33% down on the about $12m from the same period the previous year.

LPC chief executive Graeme Sumner said container volumes were down 11% on the last financial year. “A drop in imported and transhipped containers reflected a slowdown in the market, lower consumer demand and a tightening of the economy,” Sumner said. “This, coupled with higher operating costs, resulted in a fall in profit for the half year.”

While its operating revenue was up, to about $93m, expenses were up about 6.4% to more than $69m – reflecting increased labour, insurance, dredging and consumables costs, Sumner said. “Given the general conditions of the New Zealand economy, reduced container numbers and below-budget revenue, LPC has cut costs to make savings,” Sumner said.

“A number of capital expenditure projects have been delayed or cancelled with the focus on improving financial performance and delivering a dividend. “We have also focused on operating expenses, including reducing staff numbers in some areas.”

Press columnist Mike Yardley reported last week at least 17 jobs at the port had been cut.

Sumner has been the port chief executive since September. He is its fifth boss in as many years. He last week said LPC had operated a sinking-lid policy and hiring freeze of front-line port workers since the start of 2024.

Christchurch City Holdings Limited (CCHL), the investment arm of the Christchurch City Council, owns the port.

LPC paid $10m in dividends for the 2022-23 financial year.