Port of Tauranga stock faces capacity hurdle after profit rise

Port of Tauranga reported a record underlying result for the financial year ended June 30 at its annual meeting on Thursday, October 29. In its NZX announcement, the company said underlying group net profit after tax rose 23% to NZD 155.3 million despite lower cargo volumes.

Profit rose as volumes weakened

Revenue increased 4.7% to NZD 486.5 million, while operating costs fell 6.2% to NZD 221.7 million. Total trade volumes declined 3% to 24.6 million tonnes, mainly because of lower log and coal volumes, while container throughput remained resilient at just over 1.2 million TEUs.

The board declared a final dividend of 12.5 cents per share, taking the ordinary dividend for the year to 20.5 cents. The total dividend increased 22.8% from the previous year, according to the company.

Expansion remains in legal process

Port of Tauranga said the Stella Passage project remains central to relieving capacity constraints at its container terminal. The plan would extend the Sulphur Point container berth by 385 metres in two stages and the Mount Maunganui wharves by 315 metres within the port's existing footprint.

The September 7 consent is facing three appeals and two judicial review applications. Port of Tauranga expects the challenges to be heard together and is seeking an urgent hearing, while capital dredging and preparations for electric automated stacking cranes continue.

Guidance points to resilient earnings

For the three months ended September 30, total trade volumes fell 4.8% to 6.25 million tonnes and container volumes declined 2.6% to 311,000 TEUs. Management nevertheless expects fiscal 2027 underlying group net profit after tax of NZD 160 million to NZD 175 million, subject to trading conditions and other external events.

Port operator serves New Zealand trade

Port of Tauranga operates port services and cargo-handling infrastructure in New Zealand, including facilities at the Port of Tauranga, MetroPort and the Timaru Container Terminal. Its activities include berthing, cranes, tugs, pilotage, storage, cargo marshalling and contracted terminal management. Headquartered in Tauranga, the company serves import and export flows across key New Zealand markets.

New Zealand market conditions remain relevant for the port's cargo mix and investment outlook; see Current market reports.

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