Port Nelson’s 2024 financial year results show a dividend of $4.5 million and initiatives that reinforce its commitment to sustainable growth and regional prosperity amidst challenging national and international trading conditions, says Chief Executive, Hugh Morrison.

“Port Nelson’s purpose is to facilitate regional prosperity. Delivering a $4.5 million dividend for the benefit of our local community is a priority here at the Port, considering the positive impact it has on reducing rates for local ratepayers.”

The Port’s underlying (excluding one-off non-cash adjustments) Net Profit After Tax (NPAT) result was $6.2 million, down $1.5 million on last year. Cargo volumes ended at similar levels to last year, 3.2 million tonnes.

Mr Morrison says that changes in the mix of cargo contributed to the lower profit result. “The Port saw three of its larger cargo types: logs, wine, and processed timber, experience lower volumes than the previous year. These reductions reflected the global pressures felt in the markets that Te Tauihu exports to.”

The Port was also impacted by changes in the operations of shipping lines with the use of larger but fewer vessels and a reduction in equipment stored in Nelson, which had a negative impact on revenue. On the cost side, increased interest, foreign exchange movements, insurance and payroll costs had an impact.

Headline NPAT was $0.8 million, reflecting the impact of a non-cash $5 million depreciation adjustment resulting from a change in legislation related to the depreciation treatment of long-term assets. In addition, there was a $0.4 million devaluation of the property portfolio.

Despite the economic challenges, Mr Morrison says there have been many strong achievements: “Improvement initiatives have been delivered across all aspects of our business, including increased customer engagement and data sharing, improved safety systems, enhanced team engagement, strengthened community and iwi engagement, and the advancement of asset replacement and development projects that contribute to the resilience and growth of the Port.

“Good progress was made within the environmental space. The Port is on track to reduce carbon emissions by 67% by 2035, with emissions down 25% from 2019 levels. The Port also produced its first Climate-Related Disclosures report based on the NZ CS 1 Standard.”

In the upcoming 2025FY, Port Nelson will welcome a new CEO to the team, following Mr Morrison’s retirement this month.