Napier Port lifts full-year result outlook

Napier Port — New Zealand’s fourth-largest port by container volume — has raised its earnings guidance for the September year to the point where it now expects it to level peg with last year.

The port is now expecting its underlying result from operating activities to be between $39 million and $42m, up from guidance issued last November of $34m to $38m.

The result from operating activities came to $41.2m in the year to September 2020.

“While we remain uncertain about the impact of labour shortages in the pipfruit and seasonal export industries, we expect to — assuming a continuation of the current market conditions — report an underlying operating result for the 2021 financial year similar to the prior year,” said chief executive Todd Dawson.

The absence of cruise vessels calling at Napier Port due to border closures had largely been offset by an increase in bulk cargo revenue.

For the half-year to March, the company expects to report a profit from operating activities of $21m, slightly less than the $21.7m reported for the first half of the last financial year.

Dawson said Napier Port’s catchment area — Hawke’s Bay and the central and lower North Island — continued to benefit from solid demand for the region’s food and fibre exports.

“The bounce-back we saw in log exports in the last quarter of our 2020 financial year has been sustained for the first half of our current financial year, supported by sustained strong log export markets.”

He said there had been a lift in year-todate volumes of meat exports, and strong early-season pipfruit trade.

“These gains have been offset by reductions in containerised wood pulp and timber trades, following exporters’ plant maintenance and shutdowns.”

Napier Port listed in August 2019 at a premium to its $2.60 issue price. The stock last traded at $3.45.