Announcement
FLLYR: NPH: 2021 Full Year Results
08:30am
NPH
16/11/2021 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Napier Port Holdings Limited
FLLYR: NPH: 2021 Full Year Results
FINANCIAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2021
Napier Port reports record revenue and earnings
Napier Port (NZX.NPH) today reports record revenue and earnings for the
financial year ended 30 September 2021, as the resilience and diversity of
its trade portfolio continues to mitigate the effect of container shipping
disruptions and the absence of cruise ship visits caused by the ongoing
effects of the COVID-19 pandemic.
HIGHLIGHTS
o Revenue rose 9% to $109.5 million from $100.4 million in the prior year,
driven by record log exports of 3.02 million tonnes
o Result from operating activities increased 6.4% to $43.8 million from
$41.2 million with higher revenue, offset partially by higher operating
expenses including from the unwinding of 2020 cost savings to protect Napier
Port from COVID-19 uncertainty
o Underlying net profit after tax increased 7% to $22.0 million from $20.5
million, and reported net profit after tax increased 5.2% to $23.2 million
o 6 Wharf more advanced than original timeline, now expected to be
operational in the second half of the 2022 financial year and the expected
cost range has reduced to $173 million to $179 million from $173 million to
$190 million
o Final dividend of 4.7 cents per share, totalling 7.5 cps for the 2021
financial year, up from 5 cps for the prior year
o Continuation of container-based supply chain and shipping disruptions
expected and potential for log export market driven volume volatility during
2022
o Growth in underlying result from operating activities of approximately 10%
expected for 2022, assuming a continuation of current market conditions and
log export volume that is similar to 2021
FINANCIAL RESULTS
Napier Port's revenue for the year to 30 September 2021 rose 9% to a record
$109.5 million from $100.4 million in the same period a year ago, driven by
increases in bulk cargo volumes and record log exports in particular.
Napier Port, which operates the leading freight gateway for the central and
lower North Island, achieved the record despite the challenges from global
container shipping disruptions and the absence of cruise ship visits to the
region.
Bulk cargo revenue rose 32.7% to $41.5 million from $31.3 million principally
due to higher log volumes, which increased 27.6% to a record 3.02 million
tonnes. Average revenue per tonne improved due to tariff increases, one off
cost recoveries, and an improved cargo mix.
Container services revenue increased by 4.8% to $65.3 million from $62.3
million, thanks to a 2.9% increase in container volumes to 276k TEU and
improved average revenue per TEU.
Napier Port's result from operating activities rose 6.4% to $43.8 million
from $41.2 million, with the unwinding of the protective cost saving measures
introduced at the start of the pandemic in 2020 and ongoing investment in
capability to drive growth, together with costs associated with increased
activity, partially offsetting the impact of revenue growth.
Underlying net profit after tax, after adjusting for non-recurring reported
net gains, increased by 7% to $22.0 million from $20.5 million, while
reported net profit after tax increased 5.2% from $22.0 million to $23.2
million.
Chair Alasdair MacLeod said: "In the face of a global pandemic, lockdowns,
global shipping congestion, disrupted shipping schedules and supply chains,
Napier Port has over the last year again delivered on its commitments to its
customers, its shareholders, and its region.
"We have kept the cargo flowing and have moved record volumes, the majority
of which was the food and fibre exports that underpin the prosperity of our
region. Meanwhile, we have continued to invest in the infrastructure that
will support our region and our customers for the long term.
"Our new 350m-long 6 Wharf is the centre piece of this investment and we are
very pleased with the progress we are making on this once-in-a-generation
project. We are now pleased to report that we expect it to be operational in
the second half of the 2022 financial year, earlier than the contractual
completion date in the first quarter of the 2023 financial year.
"Risks remain, but thanks largely to the more advanced stage of the project
and the associated reduction in construction risk, we now expect the final
cost to range between $173 million and $179 million, lower than our earlier
estimate of $173 million to $190 million.
"Napier Port, our people and our region have weathered the challenges of the
last year very well."
Chief Executive Todd Dawson said: "Napier Port has been more than resilient
this year, it has performed incredibly well under very challenging
circumstances.
"I am immensely proud of the Napier Port team. Once again, they moved record
volumes of cargo, working with customers to deliver supply chain solutions
tailored to their needs and generated a strong financial result for
shareholders. They did all of this while keeping each other and our community
safe from the pandemic.
"Our success in attracting cargo from outside Hawke's Bay has been a factor
in driving increased volumes, with cargo owners valuing our ability to meet
and secure their supply chain requirements with access to global markets and
a port operation that continues to provide efficient, reliable, and resilient
services.
"This result is pleasing when it is considered against the challenges we
faced within the global supply chain and container shipping trade. Charter
vessel visits for the bulk trade increased to 343 up from 304 the previous
year. In contrast, container ship visits fell to 242 compared to 293 in the
year before resulting from the ongoing volatility in global shipping.
"Significantly, we hosted all these vessels while operating with reduced
space on port due to the construction of 6 Wharf.
"We are delighted with the progress we have made on 6 Wharf. Cargo owners,
and our regional economy, will benefit immediately from 6 Wharf. It will
offer increased shipping capacity, the ability to handle more and larger
vessels and improved availability across all our wharves, which will allow
Napier Port to support the demands of our region today and the growth we see
coming into the future."
BALANCE SHEET AND CAPITAL EXPENDITURE
Napier Port remains well funded. Over the last year it has invested $103.7
million in capital assets during the year, further progressing its strategic
infrastructure development programme, led by the 6 Wharf development project.
It has also invested to improve services to customers including work to
deploy an on-port log debarker, which will allow the company to cease on-port
log fumigation.
The company ended the year with drawn bank debt of $78.0 million, having
commenced drawing on its banking facilities earlier in the current financial
year to fund 6 Wharf, and has undrawn bank facilities of $102 million.
DIVIDEND AND OUTLOOK
"The diversity of trades that pass across Napier Port's wharves have
protected the company from container-based supply chain and COVID-19
disruptions we have seen over the last year," Mr MacLeod said.
"It is clear however that these disruptions will continue in the new
financial year. We are living with COVID-19 in the community. To protect our
people and our region we have implemented a mandatory vaccination policy for
staff, moving towards mandatory vaccination for port access by end of the
year.
"Meanwhile, inflationary pressures are building in the economy, while our
customers are facing a broad range of additional pressures, including the
availability of shipping equipment, space on ships, and labour availability.
"Nevertheless, we see continuing global demand for the food and fibre exports
that underpin the economy of our region and the trade across our wharves.
"Our base-case volume forecast for log exports in FY2022 is in-line with
FY2021. We have been a beneficiary of buoyant log export markets for the past
year, but we are not complacent about the potential for a cooling in these
favourable conditions to impact volumes through Napier Port.
"We are looking forward to delivering on our strategic capital investments in
the current financial year, including the earlier than contracted completion
of 6 Wharf in 2H FY2022, and we expect them to contribute to the group result
in the new financial year. Taking into account this contribution, our
base-case forecast for log volumes, and assuming a continuation of current
market conditions, we expect our underlying result from operating activities
to increase by approximately 10% for the new financial year.
"In short, Napier Port is well positioned to deliver for our customers, our
region and our shareholders and it is for these reasons the Board has
declared a final dividend of $9.4 million, or 4.7 cents per share, bringing
total dividends to 7.5 cents per share for the 2021 financial year. The final
dividend will be fully imputed, has a record date of 6 December, and a
payment date of 16 December. We look forward to providing a further update to
shareholders at our Annual Shareholders Meeting in December."
Further detail on Napier Port's financial performance for the year ended 30
September 2021 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
Jo-Ann Young
Communications Manager
DDI: +64 6 833 4521
E: jo-anny@napierport.co.nz
Conference Call
Napier Port Chair Alasdair MacLeod, Chief Executive Todd Dawson and Chief
Financial Officer Kristen Lie will host a conference call at 11.00am (NZT)
(9.00am, AEST) today to discuss the results. The presentation material to
which Napier Port will refer during the call has this morning been released
to the NZX and posted on Napier Port's investor centre.
To attend the conference call participants must pre-register at the following
link:
https://s1.c-conf.com/diamondpass/10017377-ah48ke.html
Registrations can be taken right up to the commencement of the call.
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.
End CA:00382876 For:NPH Type:FLLYR Time:2021-11-16 08:30:09
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