Napier Port Trading Update

NZX AND MEDIA RELEASE
6 March 2020
NAPIER PORT TRADING UPDATE
Napier Port (NZX.NPH) today reports on trading conditions disrupted by the COVID-19 virus.
Financial year to date trading has been in line with expectations. In particular, log export volumes
have increased by 2.9% on the prior year comparable period. However, given the current market
conditions and uncertainty regarding its duration, we expect a slowdown in log exports from levels
seen for the financial year to date and possible impacts on other cargo trades. While we are unable
to quantify the potential financial impact at this time, these conditions represent a materially
increased risk to the achievement of previous earnings forecasts.
Napier Port is closely monitoring changes to trading patterns, particularly as it affects our log export
customers and the key Chinese destination market. The impact on global trade and supply chains
from the coronavirus outbreak is uncertain and we continue to engage with our customers to
understand the possible impacts which will vary by cargo type.
Log exports continue to sail from Napier Port however there have been reductions in log harvesting
and current log inventory levels on Chinese ports remain high. Export log prices have reduced to
levels seen during the sharp price correction during 2019.
We understand port operations in China are rebuilding towards normal operating capacity but it is
uncertain how quickly this will occur. The trade outlook remains uncertain, and dependant on the
speed of recovery in China, and other countries taking measures to manage the coronavirus risk and
any resulting supply chain impacts.
Napier Port is committed to keeping the market informed, and expects to provide further
information to the market when announcing its half-year to 31 March trade data during April and its
half-year financial results in late May.
ENDS
For more information:
Erin Harford-Wright
Senior Communications Advisor
DD: 06 833 4643 M: 027 870 4884
erinh@napierport.co.nz
About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the main gateway for
Hawke’s Bay exports and operate a long-term regional infrastructure asset that supports the regional
economy. Our strategic purpose is to collaborate with the people and organisations that have a stake
in helping our region grow. View Napier Port’s investor centre: www.napierport.co.nz/investor-
centre/