Lyttelton Port Company Delivers Mixed Interim Results With Marketslowdown

Lyttelton Port Company (LPC) lifted its operating revenue by 2.3% for the six months to 31 December 2023, but revenue remained well behind forecast.

LPC reported operating revenue of $93.14 million for the interim period to the end of 2023, up $2.1 million from last year ($91.03 million).

LPC Chief Executive Graeme Sumner said the revenue result was lower than expected and reflected a downturn in market conditions.

“Container volumes continue to be well down at 225,816 TEU (twenty-foot equivalent unit), eleven per cent down on last year.

“A drop in imported and transhipped containers reflected a slowdown in the market, lower consumer demand and a tightening of the economy,” said Graeme Sumner.

“This, coupled with higher operating costs, resulted in a fall in profit for the half year,” said Sumner.

LPC’s net profit after tax (NPAT) for the six months at the end of December 2023 was $8.08 million, 33% down on the equivalent period last year ($12.1 million).

Expenses for the same period rose by 6.3% to $69.23 million compared to $65.15 million for the same period, reflecting increased labour, insurance, dredging and consumables costs.

“Given the general conditions of the New Zealand economy, reduced container numbers and below-budget revenue, LPC has cut costs to make savings,” said Graeme Sumner.

“A number of capital expenditure projects have been delayed or cancelled with the focus on improving financial performance and delivering a dividend.”

“We have also focused on operating expenses, including reducing staff numbers in some areas.”

LPC paid a final dividend for the 30 June 2023 year of $6.46m in November 2023 to Christchurch City Holdings Limited (CCHL), 100% owner of LPC, the wholly-owned investment arm of the Christchurch City Council.

This brought the total dividends paid for the 30 June 2023 year to $10.0m.

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