Announcement

FLLYR: NPH: 2019 Full Year Results 08:30a.m. 
NPH  
19/11/2019 08:30  
FLLYR  
PRICE SENSITIVE  
REL: 0830 HRS Napier Port Holdings Limited  
 
FLLYR: NPH: 2019 Full Year Results  
 
19 November 2019  
FINANCIAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2019  
 
NAPIER PORT FY2019 SETS PLATFORM FOR GROWTH  
 
HIGHLIGHTS  
FY2019 results ahead of Initial Public Offering (IPO) forecast  
o Revenue 2.3% above forecast  
o Pro forma EBITDA 2.1% above forecast  
o Pro forma NPAT 3.2% above forecast  
o Container and bulk cargo volumes ahead of forecast  
o Container volume up 1.9% on prior year to 271,000 TEU  
o Bulk cargo volumes up 10.9% on prior year to 3.4m tonnes  
o Revenue of $99.6 million, up 8.6% on prior year  
o Results from operating activities , which excludes one-off items, rose by  
$3.1m or 7.9% from $38.9 million in the prior year to $42.0 million  
o Pro forma EBITDA of $40.5 million, up 9.0% on the prior year  
o Final dividend of 2.5 cents per share declared  
 
Napier Port (NZX.NPH) today announces its results for the year ended 30  
September 2019 with revenue and earnings ahead of the forecast prepared for  
the Initial Public Offering (IPO), as growth in Hawke's Bay exports lifted  
both container and bulk cargo volumes.  
 
Revenue for FY2019 increased 8.6% from $91.7 million in the prior year to  
$99.6 million, and ahead of the $97.4 million forecast when Napier Port  
launched its IPO in July. Strong revenue growth has been experienced across  
all three service areas of Container Services, Bulk Cargo and Cruise  
Services.  
 
Results from operating activities, which excludes one-off items such as the  
costs of the IPO and fair value gains, rose by $3.1m or 7.9% from $38.9  
million in the prior year to $42.0 million.  
 
Pro forma EBITDA, including an estimate of a full year of incremental listed  
company costs, increased 9.0% from $37.2 million in the prior year to $40.5  
million.  
 
Pro forma NPAT of $19.8 million was 3.2% higher than forecast. The reported  
statutory lower net profit result reflects the costs incurred during the IPO  
and the associated capital restructuring, including the closing out of the  
interest swap hedging portfolio. It also reflects higher expenses as Napier  
Port invests for growth and builds operational resilience.  
 
Chairman Alasdair MacLeod says Napier Port has had a transformative year,  
through listing on the New Zealand Stock Exchange, recapitalising the balance  
sheet for capacity expansion and delivering results demonstrating strong  
volume growth.  
 
"We achieved these results while successfully completing our capital raising  
and sharemarket listing. This move has seen us welcome more than 9,000 new  
investors to the Napier Port share register, including 97% of our employees,  
and will allow us to extend our near 150-year record of connecting Hawke's  
Bay and the surrounding regions with the people and the markets of the  
world."  
 
"We are now well-placed to commence work on the centrepiece of our strategic  
investment programme, the new multi-purpose wharf, '6 Wharf' early next year.  
6 Wharf will give us the capacity we need to grow with the region and deliver  
our customers the efficient and networked supply chain infrastructure they  
have come to expect from us," Mr MacLeod says.  
 
Napier Port Chief Executive Todd Dawson says in Napier Port's first period as  
a listed company, the company has delivered a strong financial performance  
with cargo volumes and revenue up on the forecasts set at the time of the  
IPO.  
 
"Another record apple crop drove an 8.6% increase in apple container volumes,  
and 1.9% for all containers, on last year, with the pipfruit industry per  
hectare production well above the global average and continuing to intensify.  
Meanwhile, despite a correction in export log prices in the last quarter of  
the year, a record 2.6 million tonnes of logs were handled in the 2019  
financial year; which represents a doubling of log volume over the last three  
years," Mr Dawson says.  
 
"As forecast, a strong cruise season saw 22.8% growth in the number of visits  
in the 2018/2019 season, with 70 ship calls. This is a major contributor to  
the regional economy, with Statistics New Zealand estimating that cruise  
passengers spent $28.4 million in Hawke's Bay in the year to June 2019."  
 
"Container services revenue rose 5.5% from $58.0 million to $61.2 million,  
while bulk cargo revenue increased 11.4% from $29.0 million to $32.3 million.  
Cruise revenue increased from $2.6 million last year to $3.7 million."  
 
"In addition to trade volume growth, average revenue per TEU increased by  
3.4% in the year from $218 to $226 per TEU, compared to the forecast of $221  
per TEU. This includes tariff increases, income from additional container  
services, and charges introduced to recover the costs of infrastructure  
investments made to extend capacity and support growth."  
 
"Other container services - including our Port Pack and off-port depot  
services - performed ahead of forecast, albeit down on the prior year due to  
the loss of a significant depot customer early in the year. Our team provided  
exceptional container servicing turnarounds, assisting our container depot  
customers to gain market share during the peak export season."  
 
Bulk cargo revenue growth of 11.4% was driven by the 16.9% year-on-year  
increase in log export volumes.  
 
"Operating expenses as a percentage of revenue increased during the year,  
from 57.6% to 57.9%. This reflects a boost in staff numbers to build  
resilience and support growth, however these were higher than forecast due to  
the higher cargo volume and higher employee and site entrance safety  
improvement costs."  
 
CAPITAL INVESTMENT AND BALANCE SHEET  
The IPO has recapitalised Napier Port's balance sheet with $110 million of  
new proceeds raised used to retire Napier Port's debt and allow it to fund  
its strategic investment plan, including 6 Wharf.  
 
In the 2019 financial year, Napier Port invested $17.6 million in capital  
projects, including additional refrigerated container capacity and deposit  
payments on a third tug, Kaweka, which arrived earlier this month. It also  
commenced development of its depot services relocation to the off-port  
container hub in Thames Street, Napier, and further invested in the detailed  
design and pre-construction phase for the 6 Wharf development. Napier Port  
also invested in replacement paving works, wharf fender replacements, and  
container handling equipment.  
 
Napier Port ended the financial year with cash and cash equivalents of $31.2  
million, higher than estimated at the time of the IPO due to spend on a  
number of capital investment projects being deferred into the 2020 financial  
year and working capital gains.  
 
"Supported by these reserves and the new debt facilities we have secured, we  
believe Napier Port is well-positioned to execute our development plans. In  
line with our forecast, the board has declared a dividend of 2.5 cents per  
share," Mr MacLeod says.  
 
The dividend will be fully imputed. The record date for dividend entitlement  
is 2 December 2019 and the payment date is scheduled for 20 December 2019.  
 
OUTLOOK  
Mr MacLeod says Napier Port's focus for the new financial year continues to  
be building a thriving region through connections with its customers, its  
people and its community. These efforts will include the development of a  
sustainability strategy to respond to global challenges like climate change,  
equality and ocean conservation.  
 
"Napier Port remains confident we can deliver on the forecasts we have made  
for the 2020 financial year. As we set out at the time of the IPO, we expect  
our financial results to be underpinned by container volume growth, log  
export volumes in line with the results we achieved in the 2019 financial  
year, and continued growth in cruise ship visits," Mr MacLeod says.  
 
Further detail on Napier Port's financial performance is included in the  
Annual Report published today, on the Napier Port website  
www.napierport.co.nz and on the NZX company announcements reporting platform  
(www.nzx.com/companies/NPH/announcements).  
 
ENDS  
 
For more information:  
 
Erin Harford-Wright  
Senior Communications Advisor  
DD: 06 833 4643 M: 027 870 4884  
erinh@napierport.co.nz  
 
About Napier Port  
Napier Port is New Zealand's fourth largest port by container volume. We are  
the main gateway for Hawke's Bay 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) today. Those who have not  
registered for the call can dial the following numbers and quote the  
Conference ID number to the operator who will connect you to the call.  
However, please allow time for registration for the call with the operator.  
Conference ID: 10002510  
Conference call numbers:  
New Zealand 0800 453 055 Australia 1 800  
870 643  
Hong Kong 800 966 806 Canada/US 1  
855 881 1339  
China 4001 200 659 Singapore  
800 1012 785  
United Kingdom 0800 051 8245 Japan 005 3116 1281  
End CA:00344465 For:NPH Type:FLLYR Time:2019-11-19 08:30:47  

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