Port of Auckland keeps its financial game up, on track to deliver forecast profit and dividend

Port of Auckland CEO Roger Gray says the business has made "significant" improvements. Photo / Dean Purcell

Port of Auckland will pay an improved dividend of $20 million to the city’s ratepayers, as its half-year financial result shows it steering into smoother waters.

That is a $5m improvement on the return to the city in the same six months last year, with the Auckland Council-owned port saying it is on track to meet its expectation of a full 2024 financial year dividend of at least $35m and net profit after tax of $52m.

Underlying net profit after tax was $21.2m, up $400,000 on the previous period’s $20.8m.

The port company said this was a notable achievement given demurrage or cargo-holding income fell $15m in the six months as supply chain congestion eased.

Revenue increased to $162.5m from $159.5m, with total container imports and exports lifting from 204,088 TEU (twenty foot equivalent) to 225,088 TEU.

The port said this marked an 8 per cent increase in the port’s upper North Island market share on the previous period.

The country’s main gateway for imports also cut its debt by nearly $10m to $397.6m in the first half of FY24.

Its focus on improving its poor safety record resulted in lost time injuries reducing by 85 per cent on the previous period, with a recent survey showing worker confidence in speaking out about safety concerns was up 13 per cent.

Chair Jan Dawson said the overall improvement in performance was recognised outside the business when it won the Deloitte Top 200 most improved performance award in December.

Chief executive Roger Gray, who took over the troubled port company nearly two years ago, said the turnaround strategy was working.

“We have made significant improvements across the business and remain focused on safety-lifting performance, delivering returns to our owner Auckland Council, and improving how we support and engage with our customers and the people of Auckland,” Gray said.

The port was enjoying a record cruise ship season, with more than 350,000 passengers visiting this year. Next year’s cruise ship season was shaping up to be even bigger.

Work had started to convert a fleet of automated straddles to manual machines, Gray said.

The automated carriers were ordered during the port’s botched attempt to introduce automation to its container terminal.

The costly six-year conversion project, taken on by former senior management and directors while the terminal was operating manually, was dogged with problems and delays and axed after Gray came into the job and an almost new board had taken over.

Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the dairy industry, agribusiness, exporting and the logistics sector and supply chains.