The company announced yesterday a net profit after tax of $64.6 million for the 2024-25 year, compared with $30.4m in the previous year.
This net profit result included property re-evaluations of $33m, while the profit made from its four core business units — container, bulk, cruise and property — rose 7% to $36.9m.
It also paid an annual dividend of $18m to its shareholder, the Otago Regional Council (ORC).
Port Otago chief executive Kevin Winders said while it was a “good, solid result” the company was staying cautious amid challenges in the economy.
“We’ve got a strong balance sheet that we can weather any economic impacts.”
The lower cruise volumes for the coming season were disappointing for the company and the local economy, but Port Otago understood the reasons why and aimed to rebuild that business over the next three to four years.
Levels of about 80 vessels were expected for each of the next two years, Mr Winders said.
“Hopefully, in three years’ time, we’re returning back to numbers towards 100 and beyond.”
Port Otago chairman Tim Gibson said in a statement while the four business units recorded “mixed results”, the overall result reinforced the strength of its diverse business portfolio.
Container throughput decreased 7% to 249,000 twenty-foot equivalent units (TEUs), due to the loss of MSC’s Capricorn service in the first quarter of the financial year, along with Maersk’s Polaris service in November last year.
However, it had acquired Maersk’s new Northern Star service.
Cruise income also decreased, 91 vessels calling compared with 118 last season.
The coming season would be “leaner still” as only 80 vessels were booked.
The further reduction in cruise ship volumes for 2025-26 was disappointing, but recent government support for the cruise sector would help rebuild cruise numbers in the years ahead, Mr Gibson said.
Bulk cargo volumes remained similar to last year at 1.7m tonnes, while property rental income was $2.4m higher than last year.
Group revenue was almost identical at $132m, compared with $133m last year.
Operating expenses increased 8% to $94.4m — which included a $2.7m increase in the cost of materials and services, related to increased maintenance costs and higher IT costs.
More than $70m had been invested in long-term assets.
This included the joint-ordering of a new $36m dredge with Napier Port, a $15m Damen tug and the $14m rail pad project.
Early-stage development of Port Otago and Dynes Transport’s jointly proposed Southern Link Logistics Park, in Mosgiel, and development of the ORC’s new head office, Aonui, had also taken place.
“This is on top of investing $47m developing assets last financial year.”
Shipping reliability was expected to remain volatile due to ongoing global supply chain issues, Mr Gibson said.
Consenting and construction of stage 2 of the Southern Link Logistics Park was a “key project” for the next 12 months.
tim.scott@odt.co.nz
