CentrePort half-year result shows strong recovery

CentrePort half-year result shows strong recovery

CentrePort has achieved net profit after tax of $4.9 million for the six months to 31 December 2017
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The result is in line with budget and demonstrates the Port’s strong recovery from the impacts of the November 2016 earthquake and establishes a platform for growth.

Gross revenue of $34.0 million for the six months was ahead of plan, largely because of the faster than expected recovery in container trade, which has returned to pre-earthquake levels.

The Port also achieved strong growth in all its key trades with break bulk revenues 4% ahead of budget and logs up 5% with 653,000 JAS (Japanese Agricultural Standard) tonnes exported, together with a strong cruise ship season.
Chairman Lachie Johnstone said the company had bounced back from the worst impacts of the earthquake and was investing in resilience and regeneration of the business for future growth.

“It’s been a case of sure and steady as we realise further insurance income to help us plan for our long-term future.

“We provisioned $63 million last financial year for strengthening Port land and are continuing to develop our Port Master Plan, while also managing environmental impacts through recycling of demolition materials.”

Acting Chief Executive Anthony Delaney said it was pleasing to get the business back to pre-earthquake levels, while working in a changing and demanding environment.

“We’ve had to adjust to a lot of change and disruption. Our team and partners have embraced the challenge to keep people and freight moving safely and efficiently through the Port.”

In September 2017, the Port restarted its two ship-to-shore cranes after $28 million of temporary works to stabilise the container wharf and get container trade flowing again.

In the past year, the company has removed earthquake-prone and affected buildings including Statistics House and Shed 37 and commenced deconstruction of the Thorndon Container Wharf.

The company is in the process of undertaking works to facilitate two break bulk/log berths following the re-introduction of Aotea Quay 1 back into operational service.

Mr Delaney said the impact of the Kaikoura earthquake had underlined the importance of the Port as a strategic asset for the country, particularly in a natural disaster.

“The importance of the need to build resilience into our business and assets so we can keep essential goods and services flowing into the Capital and central region continues to be highlighted.”

The results for the 6 months ended 31 December 2017 follow.

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