Announcement
FLLYR: NPH: 2020 Full Year Results
08:30am
NPH
18/11/2020 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Napier Port Holdings Limited
FLLYR: NPH: 2020 Full Year Results
FINANCIAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2020
HIGHLIGHTS
o Annual revenue rose 0.8% to $100.4 million from $99.6 million in the same
period last year
o Container volumes were down 1.1% to 268,000 TEU and bulk cargo volumes were
down 8.3% to 3.1 million tonnes due principally to COVID-19 disruptions
o Pro forma EBITDA rose 1.3% to $41.0 million
o Result from operating activities decreased 2% to $41.2 million
o Pro forma net profit after tax rose by 4.2% to $20.4 million in line with
IPO forecasts
o Audited net profit after tax rose from $6.8 million to $22.0 million
o Trade sentiment is buoyant, but the outlook remains uncertain due to the
impact of COVID-19 and broader economic conditions
o No cruise ship visits expected in the FY2021 cruise season
o Board resolved to pay a final dividend of 5 cents per share.
o Guidance for 2021 of underlying EBITDA of between $34 million and $38
million
Napier Port (NZX.NPH), the premier freight gateway for Hawke's Bay and the
lower North Island, today reports resilient regional cargo flows have
underpinned annual revenue and earnings, despite the challenges of the
COVID-19 pandemic.
It reports continued investment in its infrastructure - including its new
multi-purpose 6 Wharf - reflecting its confidence in the long-term economic
prospects for its region and the service proposition it offers regional cargo
owners. However, due to the new economic realities the company faces in the
wake of the pandemic, Napier Port also notes that earnings for the new
financial year are expected to be reduced.
FINANCIAL RESULTS
Revenue for the year to 30 September 2020 rose 0.8% to $100.4 million from
$99.6 million in the same period a year ago. Napier Port's total container
trade was down just 1.1% to 268,000 twenty-foot equivalent units (TEU) from
271,000 TEU, while bulk cargo volumes fell 8.3% to 3.1 million tonnes from
3.4 million tonnes, principally reflecting the impact of the pandemic
lockdown on the log export trade. Although the pandemic brought the cruise
ship season to a premature end the port hosted 76 cruise lines, up from 70 in
the prior year. Revenues were also underpinned by increased revenues per
trade unit.
The result from operating activities of $41.2 million decreased by 2% from
$42.0 million in the prior year. Audited net profit after tax rose from $6.8
million to $22.0 million. The result for the prior year included several
one-off charges, including the costs related to the IPO and capital
restructuring. Stripping out these adjustments, pro forma net profit after
tax rose to $20.4 million from $19.6 million in the prior year, a figure
above the guidance given at the time of the IPO.
Napier Port Chair Alasdair MacLeod said: "Napier Port's first year of
operation as a listed entity was significantly more challenging than we
anticipated at listing as we navigated the uncharted territory of COVID-19.
"Despite all the uncertainties associated with the pandemic, our management
and people have worked through these unique challenges with commitment and
calm. This resilience operationally, backed up by tight financial controls,
has left Napier Port in a stronger position than we anticipated at the outset
of COVID-19. It has further cemented our position as the major freight
gateway for our region and the lower North Island.
"The recovery was so strong that the Board moved to repay the Government wage
subsidy for which we qualified and accepted in the early stages of the health
crisis.
"Our confidence in the region and in the quality of our offering is such that
through this period we have never hesitated with continuing to construct our
new wharf - 6 Wharf.
"This vital piece of infrastructure remains within budget, is scheduled to
be completed by late 2022, and when finished will give us the ability to
handle bigger ships, more shipping lines, and the ever-increasing volume of
cargo generated by the region, or attracted to Napier Port by our superior
service."
Chief Executive Todd Dawson said: "In the face of the significant challenges
we saw as a result of COVID-19, we have continued to deliver on our strategic
purpose to work for our region. We have done this by maintaining and
strengthening the global connections that are fundamental to linking Hawke's
Bay and New Zealand's central and lower North Island supply chains to the
world.
"In any other year, Napier Port would treat this all as business as usual.
What makes this year stand out is that we achieved all of this, as well as an
outstanding financial result, when - more than ever - the health, safety and
the economic wellbeing of our people and our region were at stake."
DIVIDEND AND OUTLOOK
Mr MacLeod said the IPO has given Napier Port a sound balance sheet.
"We ended the financial year with net cash of $7.9 million, compared to $31.2
million at the same time a year ago, and retained undrawn borrowing
facilities of $180 million.
"While this is a stronger liquidity position than we envisaged at the time of
the IPO, we now face a more uncertain outlook. This uncertainty comes at a
time when we are investing in a once-in-a-generation upgrade to our core
infrastructure.
"Sentiment amongst our customers remains upbeat and positive, particularly in
the meat and forest products sectors, however significant uncertainty remains
for our cruise industry customers entering into the new year. Neither Napier
Port nor its customers are complacent about the risks to both the global,
national and regional economy as we look to the future.
"In addition to these uncertainties, there are secondary effects which have a
direct bearing on the region and cargo flows through Napier Port, including
access to labour to harvest our region's primary produce and ongoing
congestion in supply chains in the upper North Island.
"As we signalled earlier in the year, we do not expect a resumption of cruise
ship visits this cruise season and we are conscious of the uncertainty
regarding the timing and eventual extent of this industry's revival. We
continue to exercise a disciplined approach to operating and capital
expenditure and are pursuing efficiencies, however, several of the cost
saving measures introduced in response to COVID-19, including the already
signalled deferrals of operational and capital expenditure, cannot be
sustained in the new financial year.
"Finally, the board believes Napier Port should configure itself for the long
term not only in terms of infrastructure, but also in terms of people and
capability. All these factors translate into an expectation for underlying
EBITDA for the year to 30 September to range between $34 million and $38
million. "For many of these reasons, the Board cancelled the interim
dividend and Directors still believe protecting Napier Port's balance sheet
remains a prudent stance.
"We have therefore declared a final dividend of 5 cents per share cents per
share, up from the 2.5 cents per share paid at the same time a year ago but
less than forecast at the time of the IPO. The dividend has a record date of
4 December and a payment date of 18 December.
"Napier Port is standing strong for our region. Over many years we have
established a record of working with our customers and our broader community
of stakeholders to ensure an efficient, agile and resilient supply chain for
our region," Mr MacLeod said.
"Our focus for the current year - despite the uncertainty - is to continue to
build on this success. We are looking forward to providing an update on our
progress at our annual shareholders meeting in December."
Further detail on Napier Port's financial performance for the year to 30
September 2020 is included in the annual 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
Richard Inder
The Project
DDI: 021 645 643
E: richard@theproject.co.nz
About Napier Port
Napier Port is New Zealand's fourth largest port by container volume. We are
the main gateway for exports from Hawke's Bay and the lower North Island 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. On the web:
www.napierport.co.nz
Conference Call
Napier Port will hold a conference at 11.00am (NZT) (9.00am, AEDT) today. To
attend to the conference call participants must pre-register at the following
link:
https://s1.c-conf.com/DiamondPass/10010358-by78Ft.html
Registrations can be taken right up to the commencement of the call.
End CA:00363388 For:NPH Type:FLLYR Time:2020-11-18 08:30:15
Click here
to view related attachments.
