Lyttelton Port Company Delivers A Strong Interim Result Despite Market Slow-down

Lyttelton Port Company lifted its operating revenue by 9.7% for the six months to 31 December 2022 despite a slowdown in the market.

LPC reported operating revenue of $91.03 million for the interim period to the end of 2022, up $8.07 million from last year ($82.96 million).

LPC Chief Executive Officer Kirstie Gardener said the strong revenue result is pleasing given the challenging economic environment.

“While certain trades have been negatively impacted, and we have seen increasing inflation pressures, the overall result reflects positively on our diversified revenue streams, including the return of Cruise vessels,” said Kirstie Gardener.

LPC’s net profit after tax (NPAT) for the six months at the end of December 2022 was $12.1 million, ahead of budget, but down 2.6% on the equivalent period last year ($12.4 million).

A market slowdown and the economy's tightening saw container imports fall while exports remained strong. Container volumes were lower than budgeted.

Marine, Cruise and Bulk revenue remained upbeat due to increased vessel visits, boosted by the return of large Cruise ships.

“We expect the second half of this year to be similar to the first half,” says Kirstie Gardener.

“Our focus remains on delivering key infrastructure projects, managing a challenging environment around increasing operating costs and playing our role in supporting the return to normality and schedule for the container side of our business,” Gardener said.

LPC delivered an interim dividend of $6.6 million to be paid to Christchurch City Holdings Limited (CCHL), 100% owner of LPC, the wholly-owned investment arm of the Christchurch City Council.

LPC was a proud supporter of New Zealand SailGP held on Whakarapō/Lyttelton Harbour in March 2023, based at Naval Point and the Inner Harbour.

LPC’s half-year highlights include:

• Large-scale Cruise vessels returned to Whakarapō/Lyttelton Harbour for the first time since the Christchurch earthquakes on October 27 2022. LPC received 27 Cruise ships in the six months to 31 December 2022 and is expected to receive another 55 Cruise ship visits total of 82 for the season.
• The Safety Reset was launched in July 2022 with eight Life Saving commitments.
• Continuing to deliver the Workplace Culture Action Plan enabling everyone to do their work while feeling safe and supported.
• The Eastern Development Programme to expand the container terminal continues with new truck lanes, refrigeration towers, and electrical work to be completed by April 2023.
• The new workshop project is progressing well and will be completed by the end of the 2022/23 financial year.
• Separate projects are about to get underway to improve the Inner Harbour and City Depot container hub in Woolston. These projects will provide better facilities for customers and enhance these sites' safety and environmental performance.

LPC’s critical achievements in comparison to previous years:

TEU = twenty-foot equivalent unit (container)

TRADE FY23 Half Year FY22 Half Year

VAR – variance to the previous year

© Scoop Media