In a statement, Port Otago chairman Tim Gibson said the figure included $6.4m from the sale of property assets, masking a lower operating result which was $15.5m compared to $19m for the same period last year.
The impact of 26 cruise ships arriving during the first six months of the financial year, compared to 33 vessels over the same period last year, had a material impact on port earnings and the regional economy, he said.
Bulk cargo volumes and container throughput were also down.
Log volumes dropped 8% to 462,000 tonnes while container volumes were down to 113,200 TEU, reflecting the region’s wet spring which delayed the export flow of dairy and meat products.
Transship container volumes offset the export drop and the overall decrease in container throughput was only 3% less than last year’s comparable period.
Labour and direct material costs were up $4.4m, a 13% increase compared to the same period last year, reflecting the inflationary pressures being felt across the New Zealand economy and six months of the new 10-hour-shifts model which included a wage increase for container terminal staff.
Property rental income increased 5% to $19.9m, on the back of regular rental reviews and completed projects now generating positive rental cashflow.
Significant highlights included the 150 years celebration of port in Otago in October which culminated in the opening of the new Port Chalmers Maritime Museum, partnering with Napier Port to acquire a new Damen trailing suction dredge at a cost of $37m,
and December’s announcement of Southern Link, a joint venture with Dynes Transport to develop and operate an inland logistics hub in Mosgiel.
Looking ahead at the six months to June 30, overall export volumes were unlikely to catch up to last year’s levels, after the poor spring, Mr Gibson said.
Global trading conditions remained uncertain due to geopolitical changes and potential impacts on global shipping routes and capacity could provide risk or opportunity, it was too early to know which way, he said.
Within the property arm of the business, industrial development activity in its key property markets was still subdued as higher building costs had yet to be matched by higher rentals.
“With lower long-term interest rates signalled, we expect development opportunities should begin appearing later this year and into early 2026,” he said.
An interim dividend of $9m, up from $7.5m last year, was paid on February 7. — APL
