Centreport Builds Momentum for the Future
CentrePort has achieved an underlying net profit after tax of $11.9 million for the six months to 31 December 2018 and has declared an interim dividend of $2.0 million, which compares to a full year dividend of $2.0 million last year.
The result is $7.2 million more than the corresponding period in Financial Year 2018 (FY18), and significantly in advance of budget, reflecting continued strong growth in trades and finalisation of earthquake-related insurance settlements.
Operating revenue of $41.3 million was 21 percent up from the corresponding period in FY18.
The 22 percent increase in container volumes reflects the return to full service of the ship-to-shore cranes which were out of action for half the corresponding period in FY18 due to disruption caused by the Kaikoura earthquake.
Log volumes continued strong year-on-year growth, jumping by 36 percent. Petroleum volumes were healthy with six percent growth, while the current record cruise ship season saw a 58 percent increase in calls to CentrePort.
Chairman Lachie Johnstone said the result reflected the hard work of staff and great support of importers and exporters throughout central New Zealand as CentrePort positions itself for the future.
“CentrePort has moved through the recovery phase from the Kaikoura earthquake and is now shaping the future of the Port. We are working with international experts, customers and other stakeholders to deliver a regeneration plan later this year.
“The strong operational and financial performance of the business as reflected in this result, provides the base from which we are forming strategies and implementation plans to take CentrePort forward,” he said.
CEO Derek Nind said the business continued to make good progress in growth of trades and improving operational performance while maintaining a continuous improvement in health and safety metrics.
“A busy six months has seen the continued expansion of the inland hub network including works underway to increase log throughput at Waingawa hub in the Wairarapa by 100,000 tonnes per annum. That will remove another 6000-plus truck movements off the road, which totals 24,000 truck movements saved by the Waingawa site alone.
“Other developments include resilience works on Kings Wharf, and the removal of several redundant and/or damaged structures to increase capacity and throughput for various trades. Good progress was made on the three earthquake insurance claims.”
Environmental management has been a strong focus. The waste minimisation project that commenced in 2017 has seen nearly 25,000 cubic metres of waste concrete (enough to fill 10 Olympic-sized swimming pools) recycled and the fill used on Port.
“CentrePort has transitioned from earthquake recovery to long-term development. The business is operating strongly and growing, which has it well placed as we develop plans for the future,” said Mr Nind.
CentrePort Cargo Trade Volumes
Six months to 31 Dec
2018 Six months to 31 Dec
Containers 20-foot equivalent (TEU) 45,785 37,382 + 22%
Logs JAS* 891,551 653,383 + 36%
Petroleum Tonne 540,854 511,806 + 6%
Cruise Ship calls 38 24 + 58%
*JAS – Japanese Agricultural Standard is a global measure of log volumes. One JAS is approximately one tonne.