2022 Half Year Trading Update

NZX AND MEDIA RELEASE
11 April 2022
Napier Port trading update
Napier Port (NZX.NPH) today announces reduced trade volumes for the first half of its financial year and
an update to its earnings guidance for the year to 30 September 2022.
For the six months to 31 March 2022, container volumes decreased by 16.6% and bulk cargo volumes
decreased by 8.7% compared to the same period a year ago.
The fall in cargo volumes over the period follows an escalation in global container-based supply chain
and shipping disruptions, ongoing seasonal labour shortages compounded by pandemic-related
absences across cargo-owners’ workforces, and adverse local seasonal weather conditions that have
impacted primary sector production.
Napier Port now expects to report a result from operating activities
1
for the half year to 31 March 2022
of approximately $16.4 million, which is less than the $21.3 million reported for the first half of the last
financial year. This provisional unaudited operating result is subject to further adjustments and the final
result will be reported in May.
Napier Port expects cargo volumes for the full financial year to 30 September 2022 to be lower than
previously forecast, with a corresponding reduction in its financial outlook for the 2022 financial year.
Assuming a continuation of the current market conditions, Napier Port now expects an underlying result
from operating activities for the year to 30 September 2022 to range between $38 million and $42 million,
which is less than the previously forecast increase of approximately 10% on the result for 2021 of $43.8
million.
Chief Executive Todd Dawson said Napier Port, along with its region, has faced a challenging half year
period.
“There has been an escalation in regional and global container shipping schedule disruption and we
continue to work with vessel omissions, delays, and inconsistent schedules across fewer vessel calls.
This has been accompanied by larger container exchanges for both the port and cargo-owners to
manage.”
Omicron outbreaks and pandemic-related port lockdowns in China have put additional pressure on
global supply chains and flow on effects to shipping reliability into New Zealand, Mr Dawson said.
“The continuation of seasonal labour shortages in New Zealand’s primary sector has compounded the
impact of Omicron across Napier Port’s second quarter, with labour shortages creating delays to
production within customer operations and reduced overall production, contributing to the delay in
processing of seasonal harvests and lower volumes of meat into the port” he said.
Extreme weather conditions have also contributed to delays in cargo arriving on port and caused several
port shipping closures in the second quarter. Swell has been significant, and February and March were

1
Result from operating activities is an alternative non-NZ GAAP measure and represents core operating earnings
excluding interest, taxes, depreciation, amortisation and impairments, amongst other exclusions. For further
information please refer to Note 24 of the 2021 Annual Consolidated Financial Statements.

two of the heaviest rainfall periods on record for Hawke’s Bay, with the quarter ending with the East
Coast storm over the last week in March.
Mr Dawson said Napier Port is optimistic the environmental factors that delayed product getting to port
in February and March are easing, with cargoes moving more normally during April to date.
“The trade environment for key cargoes remains positive with primary sector commodity prices
remaining high across New Zealand. We are expecting a stronger second half for meat, forestry and
horticulture exports, assuming industry labour is available.
“These positive factors are tempered however, by inflationary and other economic pressures we have
highlighted previously. Cargo customers are concerned by ongoing shipping disruption, increasing
supply chain costs, and ongoing labour shortages.
“We look forward to providing a further update when we release our financial results for the 2022 half year
towards the end of May” Mr Dawson said.

TRADE VOLUMES FOR THE HALF YEAR TO 31 MARCH
Container Services
Total container volumes for the second quarter of the 2022 financial year decreased 23.1% to 60k TEU
from 78k TEU in the same period a year ago. For the half year, total container volumes of 113k TEU
decreased 16.6% from 135k TEU in the prior period.
Full container volumes (i.e. excluding empties and other container movements) decreased 11.9% and
empty and other container movements decreased 22.3% during the half year period, compared to the
same period a year ago.
Dry export cargo for the half year reduced 12.7% to 31k TEU. Both wood pulp and timber exports continue
to be impacted by shipping schedule disruptions and shipping capacity constraints.
Reefer export cargo for the half year decreased 20% to 18k TEU. The decrease was driven by lower
volumes of export meat and apples due to delayed export seasons and industry labour shortages.
Containerised imports for the half year decreased by 16.6% from 65k TEU to 54k TEU as empty volumes
were 22.6% below the same period last year due to container equipment shortages, while dry imports
increased by 2.3%.
Other container movements for the half year, including DLRs and transhipped containers, decreased
48.6% from 11k TEU to 6k TEU due to decreased transhipment and restow activity.
Container vessel calls for the half year were 102, down from 133 calls in the prior year. The reconfigured
Maersk OC1 Trident service ceased calling Napier Port during the first quarter, while the ZIM Integrated
Shipping Service’s trans-Tasman service commenced calling Napier Port from January.
Bulk Cargo
Total bulk cargo volume, compared to the same periods a year ago, decreased 21.3% for the second
quarter to 0.72 million tonnes, and 8.7% for the half year to 1.71 million tonnes.
Log export volumes decreased 20.5% for the second quarter and 7.9% for the half year mainly due to
weaker export market conditions, higher shipping costs, an expected slowdown during Chinese New Year
celebrations, as well as Covid related disruptions at major Chinese ports and within our log export
supply chain.
Charter vessel calls decreased to 155 from 167 in the same half year period a year ago, as a result of the
decrease in bulk cargo volume.
Cruise Services

One domestic cruise vessel called during the half year. Border restrictions continue to prevent a
resumption of international cruise vessel visits.
ENDS
For more information:

Investors Media
Kristen Lie Jo-Ann Young
Chief Financial Officer Communications Manager
DDI: +64 6 833 4405 DDI: +64 6 833 4521
E: kristenl@napierport.co.nz E: jo-anny@napierport.co.nz


About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the gateway for Hawke’s Bay and
lower North Island’s 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/

Napier Port Half Year 2022 Trade Volume Data
The below trade volume data provides a summary of second quarter and half year ended 31 March 2022
results compared to the prior period.
Container Services
TEU (000s)^
Q2
FY2022
Actual
Q2
FY2021
Actual
HY2022
Actual
HY2021
Actual
Exports



Wood pulp & timber 11 13 22 25

Canned food / other food & beverage 2 2 3 4

Other dry 2 3 5 6

Total dry 14 17 31 35


Apples & pears 3 5 3 5

Meat 4 5 8 10

Fresh & other chilled produce 5 6 7 7

Total reefer 12 16 18 22


Empty 2 1 5 2

Total exports 28 34 53 59

Imports



Dry 7 7 15 15

Reefer 1 1 2 2

Empty 21 30 37 48

Total imports 28 38 54 65


Other container movements (‘DLRs
and Tranships’)
3 6 6 11

Total Container Services volume 60 78 113 135

Vessels



Container ship calls 49 68 102 133

^Rounded to nearest thousand TEU


Bulk Cargo
Kilotonnes
Q2
FY2022
Actual
Q2
FY2021
Actual
HY2022
Actual
HY2021
Actual

Log exports 581 731 1,316 1,428

Other exports 26 45 81 98

Imports 117 144 311 344

Total Bulk Cargo volume 724 920 1,707 1,870

Vessels

Charter vessel calls 68 85 155 167

Cruise Services

Q2
FY2022
Actual
Q2
FY2021
Actual
HY2022
Actual
HY2021
Actual
Vessels



Cruise vessel calls 1 - 1 -