Solid Half Year Result Shows CentrePort Focus On Efficiency And Customers Paying Off

CentrePort has continued to perform strongly across all our business functions, including positively navigating ongoing economic challenges to report an unaudited underlying half year profit of $8.2m, representing a 22% increase on last year’s half year result.

According to CentrePort Board Chair Lachie Johnstone, the result affirms that the port’s efforts on efficiency and our customers over the past two years has resulted in it delivering our plans for the business amidst a difficult trade environment.

“It’s tough out there for us and many others in business. So, to come through the first six months in this position is a testament to CentrePort’s efforts and approach and commitment to productivity.”

He said an enduring reputation for efficiency and strong customer focus alongside doing things that can benefit the city and our regions are central to CentrePort’s success.

“There is a reason CentrePort continues to be considered the most efficient container port by the World Bank’s CPPI across a growing geographic area of Oceania each year. It’s also why we have loyal customers and how we demonstrate that we’re a critical link in the freight and supply chain, supporting New Zealand Inc to succeed.”

Key highlights for the six months ending 31 December 2024 include:

• Group Underlying Net Profit After Tax(*1): $8.2m up 22% from $6.7m in the previous half year

• Revenue: $55.0m, up 8% on the prior half year

• Interim dividend - $4m, $0.5m higher than the previous year half year

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CentrePort Chief Executive Anthony Delaney said he was proud of the port’s achievements given the circumstances and was thankful for the on-going support of it’s customers in the challenging environment.

“It highlights the benefits of CentrePort’s focus on minimising waste and focusing on efficiency over the past two years, whilst mitigating impacts to our customers.”

He said a positive performance and solid reputation for efficiency, and our relationships meant the port had secured new business in a highly competitive market.

“At the end of last year, we started working with new customers Oji Fibre Solutions and Zindia Forestry, along with continuing to support our existing clients.”

CentrePort continued to invest into all its operations, with on-going work to complete the $60M investment into the Seaview Wharf Renewal progressing with targeted completion for the critical main wharf head in the middle of 2025. This significantly improves the resilience of the berth which is a critical lifeline asset for the lower North Island. The port also committed to the installation of a BESS scheme, including further embedded energy as part of its energy transition and the establishment of a private 5G network both which are targeted to be operational in 2025.

Delaney said that the partnerships formed with the likes of Tu Atea for the private 5G and Ara Ake for the BESS scheme show the ability of the port to attract partnerships, this is something which we are proud of. We’re looking forward to working with both Ara Ake and Tū Ātea and being able to lead the way with New Zealand’s first private 5G network, showing others how it can be done.

“Plus, it shows there is ample potential the port can unlock which can support future growth in the business. The private 5G network has the potential to enable significant improvement in safety, efficiency, and productivity, allowing us to manage and optimise our operations.”

The port also invested in cruise passenger shelters outside Old Parliament Buildings, offering visitors somewhere to wait or rest until they can return to their ship during the cruise season. These temporary shelters will be removed at the conclusion of the cruise season in May, with plans to reuse them for the following 2026 cruise season.

Cook Strait Ferries – Interislander Terminal

We continue to proactively work with both Treasury and KiwiRail officials following the recent Government announcement at the end of 2024. This work is focusing on options to accommodate any proposed new vessels to support the Interislander operation.

“We are proactively providing the necessary information to inform the Minister for Rail, Winston Peters’ investigations as he considers all options available to meet the Interislander’s needs in the timeframe required,” Delaney said.

This means any decisions about port associated works to its infrastructure will be waiting as ship specifications are clearly understood and articulated in order to inform infrastructure requirements. We will work through those infrastructure requirements to seek to provide a safe, reliable and affordable solution.

Outlook

CentrePort anticipates in the short term that trade will continue to be affected by the current ‘headwinds’ that business is facing across all trades but believe opportunities to support trade growth are becoming increasingly evident. The business will need to continue to remain agile, adjusting to local, domestic and international challenges.

Fortunately, Johnstone says there are more opportunities emerging than this time last year, which is a positive balance to the uncertainty the market is managing.

“Other opportunities may also present themselves, so we are cautiously optimistic as we look at the future. This is good news as a council-owned business because the port benefits the people the councils serve, which in turn meets the needs of the regions the port serves.

Delaney agreed, saying CentrePort would continue to maintain its ‘can do and solution orientated’ attitude and focus on consistent quality operations with a team that had the capacity and capability, whilst ensuring the business focused on sticking to our financial plan.

*1) The Underlying NPAT is Management’s view of the underlying performance of the Group. The Underlying NPAT removes Changes in Fair Value, Abnormal Items and the tax impact of these items from the Total Comprehensive Income for the year net of Tax

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