NEW Zealand's Napier Port reported a tough first half of the financial year, which ended March 31, with a 3.6 per cent fall in revenue from NZD52.6 million (US$33.8 million) last year to NZD$50.7 million in the current financial year.
The New Zealand stock exchange-listed port said the fall reflected lower trade volumes and the reduction in vessel calls following supply chain and Covid disruptions, reports Australia's Daily Cargo News.
The result from operating activities decreased 22.8 per cent to NZD16.4 million from NZD21.3 million in the same period last year, due to the reduction in revenue alongside an increase in operating expenses.
And the port's underlying NPAT decreased 32.1 per cent to NZD7.2 million from NZD10.6 million in the same period last year.
In a statement, the port company said the trading environment and prices for key primary industry cargoes that cross Napier's wharves has continued to be positive. At the same time, the port said it had made exceptional progress putting in place the infrastructure that will underpin the prosperity of the region and Napier Port for the long term.
'These successes and the favourable trading environment have, however, been overshadowed by ongoing seasonal labour shortages and by an escalation in global shipping disruptions that have created challenges for all parts of the supply chain - customers, ports, shippers, carriers, and agents,' the port company said.
'As a direct result we saw a 16.6 per cent reduction in container volumes for the half-year period to 113,000 TEU from 135,000 TEU in the same period a year ago, with container ship visits falling to 102 from 133.'
Napier Port also saw an 8.7 per cent reduction in bulk cargo volumes to 1.7 million tonnes this past half financial year from 1.9 million tonnes the same period last year.
Napier Port chief executive Todd Dawson said shipping schedule reliability has continued to be unpredictable, resulting in missed or delayed vessel arrivals at Napier Port as well as at other ports throughout New Zealand and internationally.
'Ships arriving have required larger container exchanges for both us and cargo owners to manage. These factors have been compounded by pandemic-related absences across cargo owners' workforces and adverse local seasonal weather conditions. This created challenges for primary sector production and further disrupted the flow of cargo,' Mr Dawson said.
'While we do not expect any immediate easing in the global supply chain challenges, we are confident that - as Covid-19 becomes endemic and the shipping industry gradually adapts to the current trading environment - these pressures will lessen. Our focus therefore is working to keep the supply chain open and cargo flowing to minimise these disruptions.'
Mr Dawson said the trade outlook for the region remains positive, with primary sector commodity prices remaining high and a stronger second half anticipated for meat, forestry and horticulture exports.
'Even though there are signs the pandemic is abating, Napier Port still faces uncertainty in the supply chain, including shipping disruption, labour shortages and high-cost inflation,' he said.
'Noting these continuing uncertainties and assuming a continuation of the current market conditions, Napier Port reaffirms the earnings guidance provided in April for the underlying result from operating activities for the year to September 30, 2022, to range between NZD38 million and NZD42 million.'
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The New Zealand stock exchange-listed port said the fall reflected lower trade volumes and the reduction in vessel calls following supply chain and Covid disruptions, reports Australia's Daily Cargo News.
The result from operating activities decreased 22.8 per cent to NZD16.4 million from NZD21.3 million in the same period last year, due to the reduction in revenue alongside an increase in operating expenses.
And the port's underlying NPAT decreased 32.1 per cent to NZD7.2 million from NZD10.6 million in the same period last year.
In a statement, the port company said the trading environment and prices for key primary industry cargoes that cross Napier's wharves has continued to be positive. At the same time, the port said it had made exceptional progress putting in place the infrastructure that will underpin the prosperity of the region and Napier Port for the long term.
'These successes and the favourable trading environment have, however, been overshadowed by ongoing seasonal labour shortages and by an escalation in global shipping disruptions that have created challenges for all parts of the supply chain - customers, ports, shippers, carriers, and agents,' the port company said.
'As a direct result we saw a 16.6 per cent reduction in container volumes for the half-year period to 113,000 TEU from 135,000 TEU in the same period a year ago, with container ship visits falling to 102 from 133.'
Napier Port also saw an 8.7 per cent reduction in bulk cargo volumes to 1.7 million tonnes this past half financial year from 1.9 million tonnes the same period last year.
Napier Port chief executive Todd Dawson said shipping schedule reliability has continued to be unpredictable, resulting in missed or delayed vessel arrivals at Napier Port as well as at other ports throughout New Zealand and internationally.
'Ships arriving have required larger container exchanges for both us and cargo owners to manage. These factors have been compounded by pandemic-related absences across cargo owners' workforces and adverse local seasonal weather conditions. This created challenges for primary sector production and further disrupted the flow of cargo,' Mr Dawson said.
'While we do not expect any immediate easing in the global supply chain challenges, we are confident that - as Covid-19 becomes endemic and the shipping industry gradually adapts to the current trading environment - these pressures will lessen. Our focus therefore is working to keep the supply chain open and cargo flowing to minimise these disruptions.'
Mr Dawson said the trade outlook for the region remains positive, with primary sector commodity prices remaining high and a stronger second half anticipated for meat, forestry and horticulture exports.
'Even though there are signs the pandemic is abating, Napier Port still faces uncertainty in the supply chain, including shipping disruption, labour shortages and high-cost inflation,' he said.
'Noting these continuing uncertainties and assuming a continuation of the current market conditions, Napier Port reaffirms the earnings guidance provided in April for the underlying result from operating activities for the year to September 30, 2022, to range between NZD38 million and NZD42 million.'
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