Napier Port said the diversity of its portfolio allowed the company to overcome industry disruption and raise its net profit by 5.2 per cent to a record $23.2 million in the September year.
Revenue rose by 9 per cent to $109.5m, driven by record log exports of 3.02 million tonnes. The company's underlying net profit rose by 7 per cent to $22m.
The company expects its underlying result from operating activities to increase by about 10 per cent in the new financial year.
Construction of Napier Port's "6 Wharf" - seen as a big game changer for the company - was more advanced than the original timeline and the facility is now expected to be operational in the second half of the 2022 financial year.
The expected cost of 6 Wharf has reduced to a range of $173m to $179m from $173m-$190m.
Napier Port declared a final dividend of 4.7 cents per share, totalling 7.5 cps for the 2021 financial year, up from 5 cps for the prior year.
Bulk cargo revenue rose 32.7 per cent to $41.5m, mainly due to a 27.6 per cent in cease in log volumes to a record 3.02m tonnes.
The average revenue per tonne improved due to tariff increases, one-off cost recoveries, and an improved cargo mix.
Container services revenue increased by 4.8 per cent to $65.3m, thanks to a 2.9 per cent increase in container volumes.
Chief executive Todd Dawson said the port had performed well in challenging circumstances.
"Our success in attracting cargo from outside Hawke's Bay has been a factor in driving increased volumes, with cargo owners valuing our ability to meet and secure their supply chain requirements with access to global markets and a port operation that continues to provide efficient, reliable, and resilient services," he said.
The port had also had benefited to some degree from disruption at Ports of Auckland and the Port of Tauranga, particular in the DLR (discharging, loading and repositioning) trade.
Underpinning the result was a stable log trade - mostly to China.
At the moment there were signs that log pricing was starting to soften and the trade was starting to encounter headwinds with port congestion in China, higher ship charter rates, nervousness in the China's construction market over the collapse of Evergrande, and power shortages in the PRC.
"Right here and now, there is some nervousness across the log market," Dawson told the Herald.
The early commissioning of 6 Wharf will be a big game changer for the company.
"It will be huge," he said. "It is a once in a generation project for something like Napier Port," he said.
"It opens up capacity for the port across all the trades," he said.
On completion, 6 Wharf will mean Napier Port will be able to receive more vessels, larger vessels, enable it to cope with growth in the region, and unlock congestion at the port.
Chairman Alasdair MacLeod said it was clear that disruptions would continue in the new financial year.
"We are living with Covid-19 in the community. To protect our people and our region we have implemented a mandatory vaccination policy for staff, moving towards mandatory vaccination for port access by end of the year," he said.
"Meanwhile, inflationary pressures are building in the economy, while our customers are facing a broad range of additional pressures, including the availability of shipping equipment, space on ships, and labour availability."
The company's annual report shows that each Napier Port employee (excluding senior management) will receive $2,779 , consisting of cash and shares.
Shares in Napier Port, which listed on the NZX late in 2019, gained 8c to $3.06.