Napier Port lifts profit 24%, ups dividend

Napier Port produced a strong result for the 2025 year. Photo / NZME

Napier Port has reported a 24.4% increase in its net profit for the September year while lifting its dividend and painting a favourable earnings outlook for 2026.

The port, which describes itself as the premier freight gateway for the central and lower North Island, said its result was underpinned by strong container cargo volume increases.

However, cruise ship visits were down – a trend that was expected to continue into the 2026 financial year.

The company said it was positioned for further growth with continued investment into developing its operating capability and capacity.

Napier Port’s net profit rose 24.4% to $30.9 million.

Revenue rose by 11.6% to $157.7m, led by strong container services volume growth and yield improvements across all trade areas.

The port’s result from operating activities increased 23.5% to $64.2m.

Looking ahead to 2026, Napier Port forecasts an underlying result in the range of $70m to $74m.

The final dividend came to 8 cents per share, taking total dividends for the 2025 financial year to 14.5 cents per share, up from 9c for the prior year, and representing a gross dividend yield of 5.9%.

Chair Blair O’Keeffe said it was another step-up in the port’s financial performance.

“As the region’s post-Cyclone Gabrielle recovery continued during the year, together with a favourable growing season, container cargo volumes have grown, and the operating leverage developed over recent challenging years saw a set of milestone financial results achieved,” he said.

Chief executive Todd Dawson said the team responded dynamically to increased container activity and met the challenge of limitations on crane availability during some of the busiest months.

Napier Port is increasing investment in its existing mobile harbour crane fleet and mobile plant replacements.

Container volumes increased by 9.1% to 250k TEU (twenty foot equivalent units) from 230k TEU.

The increase was driven by higher export timber on Pan Pac’s return to full operations, a stronger apple season and higher transhipment activity following service changes among shipping lines.

Log export volumes fell 5.8% to 2.7 million tonnes as the prior year contained logs sourced from central North Island windthrown forests.

Bulk imports increased 23% to 0.63 million tonnes because of increased fertiliser and oil product imports.

Cruise vessel visits to Napier Port decreased to 78, from 89 vessel calls in the prior year, and contributed $8.3m in revenue – down 9% on the prior year.

Looking ahead, the 2026 cruise season is set to see fewer cruise vessel visits with 60 current bookings.

The final settlement of the Cyclone Gabrielle business interruption insurance claim contributed a further $7.5m to earnings in the period, which was partly offset by valuation write-downs of property, plant and equipment.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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