Ports of Tauranga

[Sideshow Bob]

The share price is enjoying a wee surge with no news
It went up to 7.20 last night with a parcel of 30,071 shares and up another 7 cents today

A rising tide lifts all boats (sorry couldn't resist....)

Shipping companies making record profits. Maybe a little more flowing down to ports??

Maersk Sees Record $31 Billion Profit as Shipping Rates Surge - Bloomberg

[tango]

A rising tide lifts all boats (sorry couldn't resist....)

Shipping companies making record profits. Maybe a little more flowing down to ports??

Maersk Sees Record $31 Billion Profit as Shipping Rates Surge - Bloomberg

Haha!
Now up to $7.34

Often big price lifts like this are some sort of insider knowledge but I haven't seen any rumours. Maybe it's just a return to more optimism. With the wheat shipments leaving Ukraine people might think that the disruptions from the war in Ukraine and Russia are over.

[Sideshow Bob]

I would like to think that ports are sticking it to shipping companies where they can on all of their charges. Shipping companies have been sticking it to their customers with exhorbitant shipping rates, so a few shekels to port companies wouldn't really be missed......

Tauranga tarrifs are here - Principal-Tariffs-22-23-1.pdf (port-tauranga.co.nz) but don't know how they have changed over recent times....

[Sideshow Bob]

From Kingfish monthly update this morning:

Port of Tauranga (+12%) increased cargo pricing and introduced a container levy, providing protection against rising costs and highlighting the pricing power held by New Zealand ports. However, on a disappointing note, a court decision on proposed capacity expansion has been delayed until 2023. Port of Tauranga said New Zealand was looking at "severe" capacity constraints on exports within a few years if the extension is not built. Management expects to be able to meet demand over the next few years, but the delay in expansion will put extra pressure on resources at the port

[RTM]

From Kingfish monthly update this morning:

Port of Tauranga (+12%) increased cargo pricing and introduced a container levy, providing protection against rising costs and highlighting the pricing power held by New Zealand ports. However, on a disappointing note, a court decision on proposed capacity expansion has been delayed until 2023. Port of Tauranga said New Zealand was looking at "severe" capacity constraints on exports within a few years if the extension is not built. Management expects to be able to meet demand over the next few years, but the delay in expansion will put extra pressure on resources at the port

Time to look at NorthPort ! MMH.

[Sideshow Bob]

POT Financial Results for the Year to 30 June 2022 - NZX, New Zealand’s Exchange

Port of Tauranga, New Zealand’s largest port, today reported Group Net Profit After Tax of $111.3 million on 25.6 million tonnes of trade amid ongoing supply chain disruption.
The increase in revenue reflected the strong diversity of cargoes, resilient operational performance and ongoing storage revenues due to continued vessel schedule disruption. Total ship visits also increased for the first time in four years, boosting marine services income.
Results summary
• Total trade was steady at 25.6 million tonnes (down from 25.7 million tonnes)
• Container volumes increased 3.4% to 1,241,061 TEUs (from 1,200,831 TEUs)
• Group Net Profit After Tax increased 8.7% to $111.3 million (up from $102.4 million)
• Final dividend of 8.2 cents per share
• Total ordinary dividend of 14.7 cents per share (compared with 13.5 cents per share the previous year)
• Imports increased 3.0% to 9.7 million tonnes
• Exports decreased 2.5% to 15.9 million tonnes
• Subsidiary and Associate Companies’ earnings decreased 16.2%.
Port of Tauranga Chair, Julia Hoare, says the results are pleasing, but also reveal an extremely challenging time for the Port.

[Filthy]

https://www.nzx.com/announcements/407280

Port of Tauranga Limited (NZX:POT) today reported strong financial results for the first six months of the 2023 financial year, despite decreases in some cargo volumes.
Group Net Profit for the six months to December 2022 was $62.7 million, an increase of 11.3% from the same period last year. Total cargo volumes decreased 2.5% to 12.7 million tonnes.
The financial performance was driven by an increase in container volumes and transhipment, as well as the return of cruise ships to the Bay of Plenty. Container volumes increased 2.5% to 637,728 TEUs for the six month period, with transhipped containers (transferred from one vessel to another at Tauranga) increasing 21.7%.
Highlights and challenges
For the six months to 31 December 2022:
• Group Net Profit After Tax $62.7 million (an increase of 11.3% from the previous corresponding period)
• Total trade 12.7 million tonnes (a decrease of 2.5% from the previous corresponding period)
• Container volumes 637,728 TEUs (an increase of 2.5% from the previous corresponding period)
• Imports 5.0 million tonnes (a decrease of 0.9% from the previous corresponding period)
• Exports 7.7 million tonnes (a decrease of 3.5% from the previous corresponding period)
• Transhipped containers 21.7% increase to 174,444 TEUs
• Subsidiary and Associate Company earnings 0.6% increase compared with the previous corresponding period
• Log exports 3.0 million tonnes (a decrease of 2.6% from previous corresponding period)
• Direct dairy exports 0.9 million tonnes (a decrease of 3.2% from previous corresponding period)
• Ship visits 701 (an increase of 2.5% from the previous corresponding period)
• Cruise ship visits resumed in October 2022, with just under 100 vessels expected over the summer season
• Interim dividend of 6.8 cents per share (a 4.6% increase on the previous corresponding period).
Port of Tauranga Chair, Julia Hoare, expressed sympathy for all those impacted by Cyclone Gabrielle.
“The Port suspended port operations for 36 hours but we were fortunate to avoid any significant damage from the storm. We will support the disaster relief and recovery in any way we can,” she said.
Ms Hoare said the mid-year financial results announced today reflected the Port’s resilience amid fluctuations in cargo volumes and widespread port congestion.
“Our diverse portfolio of cargoes and varied income streams have allowed us to return a good result despite cargo volumes starting to decrease. Shipping schedule unreliability and increased operating costs have also been challenges,” said Ms Hoare.
“We have mitigated impacts of congestion through surcharges to incentivise smooth cargo flows and avoid excess dwell time for containers in the terminal,” she said.
Port of Tauranga is seeking to improve supply chain resilience by building capacity in the form of a berth extension at the container terminal. The resource consent hearing at the Environment Court is due to begin on 27 February.
“Without this development, New Zealand importers and exporters are facing severe capacity constraints,” said Ms Hoare.
“The development is critical to the New Zealand economy.
“The catastrophic weather events of the past few weeks have also demonstrated that New Zealand is in dire need of greater resilience and capacity in the national supply chain.”
The proposed container berth extension has been included in the Regional Coastal Environment Plan since 2003 and detailed planning began in 2019. It involves converting cargo storage land to the south of the existing wharves to create an additional berth.
Port of Tauranga Chief Executive, Leonard Sampson, said intermittent delays and congestion continued to plague the Tauranga Container Terminal as container vessels continue to arrive off schedule.
“Vessel bunching over the past few months has resulted in ships waiting at anchor and surges of container volumes, putting pressure on terminal capacity and efficiency.”
He said that a return to shipping schedule reliability over the coming months would alleviate terminal congestion and in turn improve productivity.
“By reinstating adherence to proforma windows, we will be able to accurately predict container volumes and match resources accordingly. This will allow us to deliver improved efficiency and avoid delays for shipping lines and shippers,” he said.
“We have been working with other New Zealand ports to ensure that the entire network can get back on time and allow us to better plan capacity, including labour, rail and road transport,” he said.
Financial results
Operating revenue increased 13.9% to $211.9 million for the six months to December 2022.
Operating expenses increased 17.6% due to increased labour, equipment and property maintenance and fuel costs.
Subsidiary and Associate Company earnings were flat compared with the same period last year, increasing 0.6%.
The country’s largest exporter, Kotahi, has reinforced its commitment to Timaru Container Terminal by renewing its export cargo volume agreement through to 2030. The 30,000-TEU a year agreement will enable further investment in maintenance and upgrades, giving exporters confidence in the capability of Timaru Container Terminal for the next eight years.
The Port of Tauranga Board of Directors has declared a fully imputed interim dividend of 6.8 cents per share, a 4.6% increase on the previous corresponding period.
Cargo trends
Log exports decreased by 2.6% to just over 3.0 million tonnes for the six month period as a result of soft international pricing and strong domestic demand.
Direct dairy exports decreased 3.2%, dipping to 993,360 tonnes. However, transhipped dairy exports increased significantly.
Direct kiwifruit export volumes were down significantly, by 30.7%, due to issues with fruit quality.
Ship visits increased 2.5% to 701 over the six month period.
Outlook for 2023
The outlook for the second half of the 2023 financial year remains uncertain, with predictions of a recession and the ongoing conflict in Ukraine causing widespread disruption.
A derailment on the train line between Kawerau and Port of Tauranga (during the storms of late January) may have an impact on annual log export volumes, depending on the timeframe for repairs. The recent weather events are also expected to impact annual volumes of primary produce, including kiwifruit.
Compliance costs continue to rise and, following the renegotiation of contracts with KiwiRail, Port of Tauranga is facing a significant increase in rail costs. However, the expected return to shipping schedule reliability is expected to have a positive impact on terminal efficiency and cargo throughput.
Based on the first half performance, we expect full year earnings to be between $117 million and $124 million (compared with $111.3 million in the 2022 financial year).

[bull....]

Port of Tauranga expansion bid: Iwi challenger calls for up to $100m mitigation to counter ‘adverse’ impacts

https://www.nzherald.co.nz/business/...AWDNEBXNBYTB4/

[Paint it Black]

Port of Tauranga expansion bid: Iwi challenger calls for up to $100m mitigation to counter ‘adverse’ impacts

https://www.nzherald.co.nz/business/...AWDNEBXNBYTB4/

A last day 'why not have a try' by an 'expert consultant' without any detailed justification. Hopefully the hearing sees through it and sends it packing. Very disappointing on many fronts for the overall good of NZ.

[Sideshow Bob]

https://www.nzx.com/announcements/417034

Port of Tauranga Limited (NZX:POT), New Zealand’s largest port, today reported a sound full year result, despite cargo volumes decreasing in the second half of the year.

The company reported Group Net Profit After Tax of $117.1 million, a 5.2% increase on the previous year. Total cargo volumes decreased 3.6% to 24.7 million tonnes, and container volumes decreased 5.1% to 1.18 million TEUs .

Highlights and challenges

For the year ended 30 June 2023 (compared with the previous financial year):
• Group Net Profit After Tax of $117.1 million (a 5.2% increase from $111.3 million)
• Parent earnings for the period were up 7.7%
• Subsidiary and associate company earnings for the period declined 10.7%
• Total trade 24.7 million tonnes (a 3.6% decrease from 25.6 million tonnes)
• Container volumes of 1.18 million TEUs (a 5.1% decrease from 1.24 million TEUs)
• Revenue $420.9 million (a 12.2% increase from $375.3 million)
• Imports 9.0 million tonnes (a 7.0% decrease from 9.7 million tonnes)
• Exports 15.7 million tonnes (a 1.5% decrease from 15.9 million tonnes)
• Transhipment 4.1 million tonnes (a 3.3% increase)
• Ship visits 1,432 (a 4.6% increase from 1,369)
• Final dividend 8.8 cents per share (compared with 8.2 cents per share in 2022)
• Total ordinary dividend 15.6 cents per share (compared with 14.7 cents per share in 2022).