Record Cargo Volumes Boost Centreport Profit
Strong cargo volumes have helped drive up CentrePort’s underlying profit for the 2017/18 financial year.
CentrePort recorded an underlying net profit after tax and before fair value and earthquake impact adjustments of $11.8m, a 37 percent increase from $8.6m the previous year. Strong trade volumes saw revenue increase by 16 percent from $63.7m to $73.8m.
CentrePort achieved these increases despite ongoing operational constraints as a result of the 2016 Kaikoura earthquake. These included the two ship-to-shore cranes being out of action for first twoa-half months of the financial year, and significant ongoing remediation and repair work.
The port achieved several record cargo volumes. Log volumes continued to grow, up 23 percent with 1.34 million JAS exported - the largest amount moved by the port in a single year. Vehicle volumes hit a new high of 28,099 units while for the first time CentrePort achieved back-to back handling of one million tonnes of petroleum in successive years. Container volumes rebounded strongly, up 64 percent as exporters/importers and shipping lines returned following the quake disruptions.
Chairman Lachie Johnstone said the result shows the business is recovering strongly from the impacts of the Kaikoura earthquake.
A dividend of $2m to shareholders was announced in June, the first since 2016 due to capital requirements as a result of the quake the previous year.
“The strategies put in place to get the business up to speed have worked. While remediation and repairs continue, operationally the port is in most instances exceeding pre-quake levels. CentrePort is back in growth mode,” he said.
Chief Executive Derek Nind said the result is reward for a year of hard work by staff and contractors.
“It’s been a huge effort by our people and suppliers to get the business performing so well, so quickly. We haven’t just got back on track – we’re performing better than before the quake interruption. For example we had the best January container volumes in the port’s history.
“We appreciate the exporters and importers across central New Zealand making CentrePort their port of choice. The support of our shareholders is also appreciated.
“The focus has shifted from recovery to regeneration. Our strategic priorities are designed to build resilience into the business including technology and logistics infrastructure, and continue growth such as the CentreRail network.
“We are also investing in the port’s long term future, accessing world class expertise such as Hamburg Port Consulting to ensure a 21st century strategic logistics asset for the central New Zealand economy,” he said.