Chair's Report

Lachie Johnstone, Chair

The Board is pleased to report a year of strong growth in the business, continuous improvement in health and safety and good progress on developing the CentrePort regeneration plan.

Health and safety is the number one commitment through all levels of CentrePort. The ability to make continued gains as reflected in our Statement of Corporate Intent KPIs while also achieving operational advances and an improved financial performance has been a remarkable achievement.

CentrePort management and staff have driven these and are to be congratulated for their perseverance and dedication in the face of continued operational constraints and a challenging environment as the effects of the 2016 Kaikoura earthquake are still being dealt with.

This progress reflects the company’s investment in training and systems to strive towards being a zero-harm workplace.

Strong financial and operational performance

Growth strategies, the hard work and resourcefulness of staff and strong support of local and regional customers combined to deliver the strong financial and operational performance.

The underlying profit after tax and before earthquake impacts, changes in fair value and realisation of financial instruments was $16.6m reflecting a 40 per cent improvement on the previous year. Shareholders were paid a dividend of $4m, up from $2m in the previous year.

Most major trades showed significant growth helping drive a 15 per cent increase in revenue to $85m.

Log exports increased by 27 per cent, container volumes by 11 per cent and cruise showed continued strong growth with 110 ship visits – a 36 per cent increase.

Progress towards regeneration

CentrePort has continued to deliver on its strategy to grow freight capacity, and to increase resilience. That is putting the business in a strong position to progress the CentrePort regeneration plan to deliver a 21st century logistics asset which will benefit the economy and the community.

The underlying profit after tax and before earthquake impacts, changes in fair value and realisation of financial instruments was $16.6m reflecting a 41 per cent improvement on the previous year. Shareholders were paid a dividend of $4m, up from $2m.

There was continued work with international and New Zealand-based experts to advance the regeneration plan. Valuable insights were gained from a wide range of stakeholders including customers, the community, local and central government.

Good progress was made on the earthquake insurance claim and we continue to work closely with our engineers and insurers. Two other claims involving joint venture activities have already been finalised.

I would like to pay tribute to Director Richard Janes who departed after 15 years’ service on the board. His astute judgement and counsel were an asset to the company.

We welcomed Kerrie-Lee Magill as a new director and her experience across a range of senior roles in corporates in New Zealand and the UK, complement the board as it steers CentrePort through its regeneration plan with an exciting future ahead.

The Board thanks the CentrePort team, including Chief Executive Officer Derek Nind, for continuing to grow the business, drive health and safety improvement and progress the development of the regeneration plan.