Latest news with #NapierPort
Yahoo
23-05-2025
- Business
- Yahoo
Napier Port Holdings Ltd (NZSE:NPH) (Q2 2025) Earnings Call Highlights: Strong Revenue Growth ...
Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Napier Port Holdings Ltd (NZSE:NPH) reported a strong interim result with a 10.6% increase in total revenue to $78.1 million, driven by higher container volumes. Container volumes increased by 14,000 TEU to 112,000 TEU, supported by higher wood pulp, timber, and apple volumes. The company demonstrated strong operating leverage with a 21.1% increase in operating activities to $33.1 million. Napier Port Holdings Ltd (NZSE:NPH) has maintained cost discipline and operational flexibility, contributing to a 33.4% increase in underlying net profit to $14.8 million. The company declared a fully imputed interim dividend of $0.04 per share and a special dividend of $0.05 per share, reflecting its strong financial position. Bulk cargo volumes decreased by 9.2% or nearly 200,000 tons, primarily due to the absence of one-off wind-thrown logs and additional logs from the prior year. Cruise vessel visits and passenger numbers dropped, with 77 cruise vessels this year compared to 88 last year, due to weather-related cancellations and lower bookings. The global trade environment remains volatile, with potential softening in log exports expected in the near term. Total operating expenses increased by 4% to $44.9 million, driven by higher employee benefits and stevedoring costs. Total gross emissions increased by 8.2% due to higher diesel use, despite efforts to reduce emissions through efficiency measures. Q: Can you elaborate on the recent guidance upgrade and the factors contributing to the new range? A: Kristen Lee, CFO: Earnings guidance is more of an art than a science. At the half-year mark, we have better information, especially during the intensive export season. Positive signs, such as a strong apple harvest, support the revised guidance range. Todd Dawson, CEO, added that the growing season has been favorable, and cost management has been effective. Q: What is the outlook for cruise bookings in the coming years, particularly for FY27 and beyond? A: Todd Dawson, CEO: The cruise industry in New Zealand faces challenges, with lower bookings expected for the next couple of years due to strong market conditions in the Northern Hemisphere and regulatory challenges in New Zealand. We are working to improve perceptions and expect bookings to be subdued for a few years. Q: Regarding the log export outlook, are there any other rail initiatives for logs from outside the region? A: Todd Dawson, CEO: Currently, Enslaw One is the only major exporter using rail from outside the region. Road versus rail remains competitive for other exporters from the lower central North Island area. Q: Can you provide more details on the impact of the apple harvest on the full-year growth? A: Kristen Lee, CFO: The apple harvest has been better than last year, with a slight bring forward in timing. We expect overall positive growth compared to last year, but we are cautious about putting a specific number on it. Q: What is the impact of weather on cruise bookings, and how many additional bookings can be expected? A: Todd Dawson, CEO: Weather-related cancellations are common, with 2 to 5 expected annually. For the next season, most bookings are locked in, and we might see a few additional ones, but not significantly more. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RNZ News
20-05-2025
- Business
- RNZ News
Napier port profits show recovery from Cyclone Gabrielle
A container ship at Napier Port. Photo: Supplied / Napier Port The port of Napier has had a strong profit rebound as the regional economy recovered from Cyclone Gabrielle lifting cargo volumes and revenue. Key numbers for the six months ended March compared with a year ago: The country's fourth biggest port benefited from the recovery of the broader regional economy from 2023's Cyclone Gabrielle, which disrupted horticulture, timber and wood products exports and damaged the port and transport links. Chief executive Todd Dawson said a return to regular and normal trading conditions, especially for key customers, was behind the profit lift. "The full resumption of Pan Pac's pulp and timber operations has driven a notable increase in dry export container volumes. Meanwhile, favourable growing conditions led to an earlier apple harvest, boosting refrigerated container throughput," Dawson said. The bottom line result was also boosted by a final insurance payment of $7.5 million. The gain in container volumes offset a fall in bulk cargo as fewer logs were exported, and revenue from cruise ships also fell as the number of visits decreased to 77 from 88, with 66 visits so far booked for the coming season. Dawson said the port's diverse cargo base along with tight control on costs allowed it to cope with the changing trading environment. "Demand for the region's food and fibre exports has been strong, and we expect to sustain healthy volume and earnings into the second half of the year." The company is forecasting a full year underlying profit of between $59m to $63m. Shareholders were rewarded with a special one-off dividend of 2.5 cents a share as it returned surplus cash arising from the final insurance payout. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
13-05-2025
- Business
- NZ Herald
Capital Markets: Why councils should embrace asset recycling for growth
Late last year Infrastructure New Zealand, in partnership with Aurecon, released a report that should be essential reading for those intending to stand for council at this year's local body elections that open for voting in September. Titled Unlocking Value: Recycling Our Infrastructure Assets To Grow New Zealand, the paper explores the topic of asset recycling; partnering with the private sector on existing public assets and 'recycling' cash back into infrastructure communities need. It explains that existing assets are monetised to release capital and recycled to better use infrastructure. New or upgraded infrastructure delivers on public outcomes needed without raising debt. Asset recycling differs from privatisation as it 'recycles' capital back into higher performing infrastructure. The New Zealand public markets can help with this by offering councils options that do not burden ratepayers in needing to pay for increased levels of debt. Napier Port – a funding success Utilising New Zealand's public markets provides another tool in a council's toolkit alongside rate hikes, increased levels of debt, selling ground leases, development contributions and user-pays. Our markets cater for a range of funding options to raise capital whether it be an equity listing or raising debt. In 2024, $15.8 billion of capital was listed or raised on the NZX. This highlights the value of being NZX-listed in a capital-constrained environment. Each council may have different requirements for why it needs to access capital. For Napier Port, which was fully owned by the Hawke's Bay Regional Council (HBRC), it was about how it could expand its physical operation, diversify its risk and increase profitability – all without increasing the amount ratepayers would have to pay. HBRC and Napier Port Holdings explored multiple options, including private investment, leasing to an international operator, and an Initial Public Offering (IPO). However, retaining majority public ownership was a key priority, making the IPO the preferred strategy. They consulted extensively with local stakeholders – including politicians, businesses, employees, local iwi, ratepayers, community groups, shareholders and media. In December 2019, Napier Port Holdings listed 45% of Napier Port on the NZX. The IPO unlocked $234 million of capital, enabling Napier Port to expand its berth capacity. Importantly, the Napier Port IPO has delivered substantial benefits, enabling critical infrastructure expansion, financial diversification for the Hawke's Bay Regional Council, and economic growth for the community. Dividends paid to shareholders are higher than before listing. The Napier Port example shows that asset recycling is not about selling down the family silver, it is actually about growing the family silver, freeing up capital that can be better used elsewhere, and all to the community's benefit. This was community leadership in action, creating a positive legacy where regional councillors should be applauded for their strong governance. In the past couple of years Auckland Council has demonstrated similar pragmatism with the sell down of its 9.71% stake in Auckland International Airport into a professionally run, council-controlled organisation (CCO), the Auckland Future Fund. That fund is expected to provide additional funding to Auckland Council of around $40m of cash returns per year – all without raising rates or increasing debt. Where else could asset recycling help? There are many councils throughout New Zealand that would benefit from asset recycling. The Bay of Plenty Regional Council is looking to reduce its 54.1% shareholding in the Port of Tauranga to ensure it better diversifies its investments through its commercial arm, Quayside Holdings. Christchurch last explored this in 2023 but councillors decided not to take the next step. The question for that city is: does the council through its investment subsidiary really need to own 100% of Lyttelton Port, 75% of Christchurch International Airport (the Crown owns the other 25%) and 89.3% of Orion Group (Selwyn Council owns 10.7%)? What direct benefits are the city and its residents gaining from this level of ownership at a time when the city will need additional capital for infrastructure to support 32,000 extra people in the next decade? Likewise, does Dunedin City Council need to keep 100% ownership of Aurora Energy? The sale proposal on the council table last year was aimed at reducing debt and creating an investment fund that could produce millions of dollars each year. That ultimately was not supported. The lines company has reported forecast debt level of $581m by the middle of this year. It is an asset that requires significant capital investment – money that may have to come directly from Dunedin ratepayers. A partial float could facilitate the growth capital Aurora requires without burdening ratepayers and, at the same time, retaining majority control for those who see it as a 'strategic asset'. Then there is Wellington International Airport. In October last year Wellington City Council was looking to sell its 34% stake in the airport to establish a new perpetual investment fund. That money ($492 million) was earmarked to help the city recover following a future natural disaster, address the council's insurance risk and reduce reliance on future borrowing. That too, narrowly failed to get the green light from councillors and now Wellington has a significant challenge on how to pay to improve its infrastructure. Without a solution, this financial burden could fall on ratepayers. The Wellington, Christchurch and Dunedin examples are in many ways a community communications and engagement challenge. Councils keen on exploring asset recycling need to ensure they achieve community stakeholder buy-in and goodwill. And that includes engaging with local stakeholders and media and being open with them on what the process is and the outcome that is being sought. It is all about context and councils should not be afraid of debate if they have done their homework. That is where HBRC succeeded in Napier: it specified exactly where – and how much – of the recycled capital would go into specific infrastructure. If councils do this, it then becomes a discussion of gaining something new from something existing. It needs to be that granular to ensure ratepayers and stakeholders understand what the outcome of the proposal will be. Just saying the money gained from partially listing an asset will go into a consolidated council fund is unlikely to pass the sniff test with ratepayers. Transparency and outlining the funding alternatives for paying for community infrastructure – either more debt or significantly higher rates – are key. Otherwise, the long-term effect will be intergenerational inequity – the grandchildren of ratepayers will be saddled with debt paying for facilities granny and grandad directly benefited from. Using public markets to raise capital to fund growth, or to recycle capital back into high priority infrastructure is a win-win. Also, once listed, councils have the option to allow these businesses to raise secondary capital through the market to fund further growth and opportunities. Councils are more than just rubbish, roads and rates. Arguably they play a more important role in our daily lives than central government. The water you use in the shower, the local roads or trains you use to get to work, the parks, pools, playgrounds and halls where families play and exercise – they are all the responsibility of a council. And that infrastructure has to be paid for. It is simply unaffordable and disingenuous to say that ratepayers should solely foot the bill. Councils also have a key role to ensure they create a town or city where people want to live and businesses want to invest, grow, hire more people and, in turn, create wealth and value for their community. There is no magic money tree to pay for all of this. Utilising public markets to raise and recycle capital provides practical options for council funding. It is transparent, democratic and, as we have seen with Napier Port, hugely successful for all.
NZ Herald
28-04-2025
- General
- NZ Herald
Memorial buoy monument unveiled in Napier as port victims recalled on Workers Memorial Day
Among his roles, Taana has since been involved in many discussions with Maritime NZ, which now oversees portside health and safety. 'I guess you can call me a consultant,' he said. Baker had been working in sawmilling for about five years before he started at the port, and said at first it was 'a bit overwhelming' being on the wharves where his father died the day before his 50th birthday. He said he soon overcame the trepidation, pleased to see the commitment at the port to safer conditions and realising the changes that had been made over the years. Napier Port CEO Todd Dawson said Workers Memorial Day is a reminder that everyone in the workplace needs to remain vigilant about risks to health and safety, and it is a 'collective responsibility everyone returns home safe at the end of the day'.
