Announcement
HALFYR: NPH: 2021 Half Year Results
08:30am
NPH
25/05/2021 08:30
HALFYR
PRICE SENSITIVE
REL: 0830 HRS Napier Port Holdings Limited
HALFYR: NPH: 2021 Half Year Results
UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR TO 31 MARCH 2021
TRADE DIVERSITY MITIGATES ONGOING PANDEMIC EFFECTS
HIGHLIGHTS
- Revenue rose 0.6% to $52.6 million from $52.3 million in the same period
last year, despite Covid-19 preventing cruise vessel visits, which generated
$4.2 million in the same period last year
- Bulk cargo revenue increased $4.2 million, or 26.5%, to $20.2 million
driven by a 20.6% increase in log exports to 1.43 million tonnes
- Container volumes of 135,000 TEU were in line with the prior period
- Result from operating activities decreased 2% to $21.3 million due to a
2.4% increase in operating expenses
- Underlying net profit after tax decreased 5.2% to $10.6 million. Reported
net profit after tax decreased 14.9% to $10.6 million due to the
reinstatement of tax depreciation on commercial buildings in the prior year
- Demand for the region's food and fibre exports remains robust, however the
impact of labour shortages and supply chains disruption on trade remains
uncertain
- Board resolved to pay a fully imputed interim dividend of 2.8 cents per
share, increased from no interim dividend in the prior year
- Expected underlying result from operating activities for the year to 30
September 2021 remains at between $39 million and $42 million, assuming a
continuation of current market conditions
Napier Port (NZX.NPH) today reports resilient half year revenue and earnings
as the diversity of the Napier Port trade portfolio mitigates the ongoing
effects of the Covid-19 pandemic.
Sustained strong log export market conditions resulted in a record log export
volume for the first half of the financial year.
FINANCIAL RESULTS
Revenue for the half year to 31 March 2021 rose 0.6% to $52.6 million from
$52.3 million in the same period a year ago. Napier Port's total container
trade of 135,000 twenty-foot equivalent units (TEU) was in line with the
prior period, while bulk cargo volumes increased 17.1% to 1.87 million tonnes
from 1.6 million tonnes.
Bulk cargo revenue increased $4.2 million or 26.5%, to $20.2 million driven
by growth in log export volumes. Log exports increased 20.6% to 1.43 million
tonnes due to sustained strong log export market conditions. No cruise
revenue was earned in the half year, due to closed international borders,
compared to $4.2 million in the same period last year.
The result from operating activities of $21.3 million decreased by 2% from
$21.7 million in the prior year as a result of a 2.4% increase in total
operating expenses, the principal components of which were increased
insurance and employee benefit expenses.
Underlying net profit after tax, after adjusting for non-recurring net gains
in the prior year, decreased 5.2% to $10.6 million from $11.1 million in the
prior year as a result of the decrease in the result from operating
activities and increases in depreciation and amortisation expenses.
Reported net profit after tax decreased 14.9% from $12.4 million to $10.6
million as the prior year benefited from one-off tax income of $1.5 million
due to the reinstatement of tax depreciation on commercial buildings.
Napier Port Chair Alasdair MacLeod said: "A key strength of Napier Port is
the diversity of trades that pass across our wharves.
"In the half year to the end of March 2021, strong growth in bulk exports,
and a 20.6% increase in log exports in particular, have offset the absence of
cruise ships, which, prior to the Covid-19 pandemic, were a welcome source of
business for both Napier Port and the region.
"Over the last half year, that diversity was also apparent in our container
trade. Volumes were steady at 135,000 TEU, but with changes in mix between
trades with higher exports of meat and apples and other container movements
offsetting falls in containerised wood pulp and timber and lower import
volumes.
"The diversification of trades and relative stability of earnings this
provides to Napier Port are a key reason why we have been able to look
through the current Covid-19 turmoil and continue to invest in the
infrastructure that will support our region for the longer term.
"The centre piece of this investment is 6 Wharf, an inter-generational asset
that will extend our capacity and our region's access to global markets. The
project remains within budget and on track to open in late 2022."
Napier Port Chief Executive Todd Dawson said: "The disruption we have seen to
global shipping over the last year has presented considerable challenges to
Napier Port and our customers.
"Solid log flows across Napier Port have been sustained in response to the
strong export market conditions.
"At the same time, congestion - particularly in the upper North Island - has
seen 26 container ships miss their scheduled calls. Schedule changes and
interruptions have resulted in volatile container flows and cargo owners
struggling with shipping container equipment and space availability. On port,
containers have dwelled longer, limiting operational space, while we have
seen a 67%, or an 11k TEU, increase in other container movements, including
DLRs and transhipments.
"Throughout this period, clear communication with all our stakeholders and
responding to the container shipping challenges with the flexibility
available to us has been fundamental to meeting our customers' needs.
"I am proud of the way the Napier Port team has risen to the challenge. Our
people responded with the determination and the can-do attitude that is at
the heart of Napier Port's culture."
BALANCE SHEET AND DIVIDEND
Mr MacLeod said Napier Port would maintain a prudent approach to its balance
sheet, considering its existing commitments related to the 6 Wharf
construction project and ongoing trade uncertainties.
"In the first half we have spent $45.8 million on capital expenditure,
further progressing our strategic infrastructure development programme, led
by the 6 Wharf development project," Mr MacLeod said.
"We ended the half year with drawn bank debt of $36.0 million and with
balance sheet net debt of $32.1 million, having commenced drawing on our
banking facilities during the first half of the current financial year to
fund the 6 Wharf project. In addition, we have undrawn bank facilities of
$144 million.
"Whilst the immediate challenges of COVID-19 necessitated caution and no
interim dividend during 2020, the Board has resolved in the current financial
year to pay a fully imputed interim dividend of 2.8 cents per share, in line
with its dividend policy. The dividend record date will be 11 June and the
payment date will be 25 June."
OUTLOOK
"Demand for the region's food and fibre exports remains robust. However,
notwithstanding the Government's recent moves to increase the availability of
seasonal labour in the future, the impact of worker shortages on seasonal
export industries remains uncertain," Mr MacLeod said.
"Pipfruit exports are tracking in line with the prior year, but it is not
clear what the eventual export crop size for this year will be as a result of
the seasonal labour shortages. Similar dynamics are at play across all fresh
produce sectors.
"Meanwhile, the continued challenges to container-based supply chains from
regional and global shipping disruptions continue to impact on the free flow
of cargo.
"Noting continued uncertainties and assuming a continuation of current market
conditions, Napier Port reaffirms the earnings guidance provided in April for
the underlying result from operating activities for the year to range between
$39 million and $42 million.
"We intend to provide a further interim update to the NZX market regarding
our June quarter trading results during August."
Further detail on Napier Port's financial performance for the half year to 31
March 2021 is included in the half year report and investor presentation
released to the NZX today and available on the company's investor website at:
https://www.napierport.co.nz/investor-centre/
ENDS
For more information:
Investors
Kristen Lie
Chief Financial Officer
DDI: +64 6 833 4405
E: kristenl@napierport.co.nz
Media
Jo-Ann Young
Communications Manager
DDI: +64 6 833 4521
E: jo-anny@napierport.co.nz
About Napier Port
Napier Port is New Zealand's fourth largest port by container volume. We are
the gateway for Hawke's Bay and lower North Island's exports and operate a
long-term regional infrastructure asset that supports the regional economy.
Our strategic purpose is to collaborate with the people and organisations
that have a stake in helping our region grow. View Napier Port's investor
centre: www.napierport.co.nz/investor-centre/
Conference Call
Napier Port will hold a conference at 11.00am (NZT) (9.00am, AEDT) today. To
attend the conference call participants must pre-register at the following
link:
https://s1.c-conf.com/diamondpass/10012695-fr46y3.html
Registrations can be taken right up to the commencement of the call.
End CA:00372736 For:NPH Type:HALFYR Time:2021-05-25 08:30:15
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