Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — H1 FY2024 Earnings Presentation
42 slides from Port Of Tauranga's earnings presentation, Feb 23, 2024
Slide 1: Half Year Result to 31 December 2023
Half Year Result to 31 December 2023 23 February 2024
Slide 2: Disclaimer
Disclaimer The information in this presentation is for information purposes and has been prepared by Port of Tauranga Limited with due care and attention. However, neither the Company, nor any of its Directors, officers, employees, contractors or agents, shall have any liability whatsoever to any pe
Slide 3: Highlights and challenges
Highlights and challenges Six months ended 31 December 2023 Imports million tonnes 3.9 a 22.7% decrease from 5.0 million tonnes Group net profit after tax Exports million million tonnes $47.2 a 24.7% decrease from $62.7 million 7.8 a 0.6% increase from 7.7 million tonnes Total trade Log exports mill
Slide 4: Group Net Profit after tax
Group Net Profit after tax For the six months to ended December 2023 $70,000 $62,725 $56,341 $60,000 $48,746 $50,000 $47,241 $40,000 $000s $30,000 $20,000 $10,000 $0 FY21 FY22 FY23 FY24 4
Slide 5: Interim dividend
Interim dividend 8 6.8 6.5 6.0 6.0 6 Cents per share 4 2 0 FY21 FY22 FY23 FY24 5
Slide 6: Net debt / net debt + equity
Net debt / net debt + equity For the six months ended December 2023 35% 29.5% 30% 24.5% 25% 20% 18.0% 18.1% 15% 10% 5% 0% FY21 FY22 FY23 FY24 6
Slide 7: Total trade down 8.5%
Total trade down 8.5% For the six months ended December 2023 Total trade Six months ended December 2023 15,000 13,084 13,050 12,722 12,500 11,634 10,000 000s Tonnes 7,500 5,000 2,500 0 FY21 FY22 FY23 FY24 7
Slide 8: Total vessel calls down 3.8%
Total vessel calls down 3.8% For the six months to end December 2023 Total vessel calls Six months ended December 2023 800 600 373 328 338 373 400 200 323 311 328 346 0 FY21 FY22 FY23 FY24 Container Vessels All Other Vessels 8
Slide 9: Breakbulk volume up 5.3%
Breakbulk volume up 5.3% For the six months ended December 2023 Bulk cargoes volume Six months ended December 2023 7,500,000 5,880,701 5,965,208 5,925,983 6,000,000 5,626,658 4,500,000 Bulk Tonnes 3,000,000 1,500,000 0 FY21 FY22 FY23 FY24 9
Slide 10: Total bulk cargo by commodity
Total bulk cargo by commodity For six months ended December 2023 Total bulk cargo volume by commodity Six months ended December 2023 7,000,000 All Other Goods 6,000,000 Steel 5,000,000 Salt Liquid Bulk 4,000,000 Cement Tonnes Grain 3,000,000 Fertilisers 2,000,000 Other Wood Product KiwiFruit 1,000,0
Slide 11: Log exports up 19%
Log exports up 19% For the six months ended December 2023 Log exports Six months ended December 2023 4,000,000 3,581,007 3,246,787 3,087,334 3,004,664 3,000,000 JAS (tonnes) 2,000,000 1,000,000 0 FY21 FY22 FY23 FY24 11
Slide 12: Forestry outlook
Forestry outlook • Downturn in China continuing to weigh on the export market. • Optimism that log prices will hold around current levels. • 65% Tauranga export volume from forest estate owners who manage a sustainable cut to generate fixed income - as such less price sensitive. • CNI windthrow reco
Slide 13: Container volumes down 15%
Container volumes down 15% For the six months to end December 2023 Container volumes Six months ended December 2023 500,000 450,000 396,602 400,640 398,284 400,000 Containers 350,000 338,185 300,000 250,000 200,000 150,000 100,000 FY21 FY22 FY23 FY24 13
Slide 14: Transhipped TEUs down 25%
Transhipped TEUs down 25% For the six months to end December 2023 Transhipped TEUs Six months ended December 2023 200,000 172,021 160,100 150,000 132,400 119,848 TEUs 100,000 50,000 Coastal Connect service phased out February 2023 0 FY21 FY22 FY23 FY24 14
Slide 15: Import TEUs down 17.9%
Import TEUs down 17.9% For the six months ended December 2023 Import TEUs Six months ended December 2023 300,000 250,000 223,856 222,968 202,523 200,000 183,115 TEUs 150,000 100,000 50,000 0 FY21 FY22 FY23 FY24 15
Slide 16: MetroPort containers down 30.6%
MetroPort containers down 30.6 % Total MetroPort containers Six months ended December 2023 120,000 105,153 97,181 100,000 89,084 80,000 67,475 Containers 60,000 40,000 20,000 0 FY21 FY22 FY23 FY24 • Increased MetroPort rail cost from Q1 2023 • Reduced consumer demand, higher inventory levels in seco
Slide 17: Export TEUs down 8%
Export TEUs down 8% For the six months ended December 2023 Export TEUs Six months ended December 2023 300,000 266,016 254,661 250,000 238,444 233,967 200,000 TEUs 150,000 100,000 50,000 0 FY21 FY22 FY23 FY24 17
Slide 18: Total kiwifruit volume down 16.6%
Total kiwifruit volume down 16.6% For the six months ended December 2023 Kiwifruit volume Six months ended December 2023 • Kiwifruit has experienced two 1,000,000 difficult seasons (2022 fruit quality issues, 2023 low volumes). 816,667 750,000 735,599 • 2023 crop (135M trays) impacted by weather eve
Slide 19: Total direct dairy volume down 4.4%
Total direct dairy volume down 4.4% For the six months ended December 2023 Direct export dairy volume Six months ended December 2023 1,250,000 • Milk volumes continue to be in line 1,001,093 1,025,913 993,358 with previous season, slightly down 1,000,000 949,689 in the North Island, up in the South
Slide 20: Meat volumes up 17.4%
Meat volumes up 17.4 % For the six months ended December 2023 Export and transhipment meat volume up 17.4% Six months ended December 2023 300,000 • Strong demand in US and Canada offsetting softer 205,782 demand from China. 201,503 192,555 164,755 164,184 • South Island and Australian Tonnes 150,000
Slide 21: Kiwifruit outlook
Kiwifruit outlook • The February 2024 crop estimate is a gross crop of 197 million tray equivalents – this will be a record crop packed. • Significant increase on the 135 million trays packed in 2023. Kiwifruit export annual volume growth by variety (2024 = February forecast) 250 3% 3% • The return
Slide 22: Dairy outlook
Dairy outlook • Lift in demand primarily from the Middle East and South-East Asia has seen GDT prices up 10% over the last quarter, has offset reduced demand to China which is also impacting shipping profile. • Forecast range for the season continues to climb from season opening $6.62-$7.27 per kg/m
Slide 23: The return of cruise
The return of cruise Cruise vessel calls to December 2023 120 108 100 90 80 Visits 60 40 26 20 0 0 FY22 FY23 FY24 Actual 2024 Forecast 23
Slide 24: Container storage income
Container storage income For six months ended December 2023 Average TEU in yard 20,000 7 Terminal container storage income 18,000 6.5 $3,500 16,000 14,000 6 TEU 12,000 Dwell Days 10,000 5.5 $3,000 $2,792 8,000 5 6,000 4,000 4.5 $2,500 2,000 - 4 Mar-23 May-23 Oct-22 Nov-22 Jun-23 Oct-23 Nov-23 Jul-22
Slide 25: Our national network
Our national network By the numbers: Port of Tauranga is New Zealand's international hub port. It operates the country's largest container terminal ‘and handles around 42% of all shipping containers. Port of Tauranga handles 33% of all New Zealand Cargo and 37% of all New Zealand exports? Port of Ta
Slide 26: Subsidiaries and associates net profit after tax down 34.2%
Subsidiaries and associates net profit after tax down 34.2% For six months ended December 2023 $10,000 $8,263 $7,341 $7,383 $4,861 000s $5,000 $0 FY21 FY22 FY23 FY24 26
Slide 27: Profit down 6.3% to $3.673 million
• Profit down 6.3% to $3.673 million. • Breakbulk volumes down 4.5% to 1.280 million tonnes. • Log volumes down 4.5% to 0.916 million tonnes. • Container volumes down 43.5% to 5,860 TEU. • Strong contribution once again from NorthTugz. 27
Slide 28: Profit down 47.6% to $0.705 million
• Profit down 47.6% to $0.705 million. • Bulk trade volumes down 15.6% to 0.801 million tonnes. • Log volumes down 20.0% to 0.139 million tonnes. • Vessel calls flat at 212 including five cruise vessels. • Prudent capital management – have delayed their redevelopment of bulk berth. 28
Slide 29: Reported an operating loss of $0.642 million
• Reported an operating loss of - $0.642 million vs $0.492 million profit in the prior corresponding period. • Weakness in distribution centres and 3PL transport division. • Currently going through a major restructure of its operations. • Concentrating on simplifying and right sizing the business. •
Slide 30: Loss of $0.295 million vs prior year
• Loss of -$0.295 million compared to a loss of -$0.004 million in the prior year. • Container volumes up 1.2% to 37,393 TEU. • TCTL forecast to have a stronger second half. 30
Slide 31: Profit for the period flat at $1.575 million
• Profit for the period was flat at $1.575 million. • QM being impacted by lower TEU volumes at Tauranga. • QM should see a lift in reefer and generator income with stronger kiwifruit volumes in the second half. • Positive contribution from Ruakura operations. 31
Slide 32: Opened 1 August 2023; small loss for the period
• Opened on 1 August 2023. • Incurred a small loss of -$0.208 million for the period. • Forecast that the JV will be at break-even by year end as volumes ramp-up. • Maersk cool store expected to be fully operational and in use by end of Quarter 1, 2024. • 4,386 railed TEU through the site. 32
Slide 33: Berth extension resource consent - update
Berth extension resource consent - update • Environment Court three-week hearing March 2023. • Interim decision received 13 December 2023:- • Stage 1 Sulphur Point (285-metre berth extension) provisionally granted subject to further directions being addressed to the satisfaction of the Court 6- mont
Slide 34: Facilitating New Zealand's trade
Facilitating New Zealand’s trade Largest port both volume and value Total New Zealand tonnes by port FY2023 Total New Zealand cargo value by port FY2023 25,000,000 50 20,000,000 40 NZD (Bilions) 30 Tonnes (Millions) 15,000,000 20 Import Import 10,000,000 Export Export 10 5,000,000 - 0 24% of New Zea
Slide 35: Demographics – driving future growth
Demographics – driving future growth 35
Slide 36: Future upper North Island supply chain
Future upper North Island supply chain 36
Slide 37: Port of Tauranga – Terminal development
Port of Tauranga – Terminal development 37
Slide 38: Ruakura Inland Port
Ruakura Inland Port 3} Ruakura INLAND PORT 3S Ruakura > Port of 'e” Tauranga Port of Tauranga
Slide 39: Northport – Vision for Growth
Northport – Vision for Growth Northport holds an existing consent for 270-metre berth extension. Currently applying for future consent for container terminal development and reclamation. Marsden rail spur crucial to port development KiwiRail in process of detailed design. 39
Slide 40: Terminal automation project
Terminal automation project • Introduction of new electric Auto Stacking Cranes (ASC). • Down to shortlist of two potential vendors. • Detailed vendor evaluation and discussions nearing completion. • Expect to select provider mid 2024. • Deployment linked to timing of berth extension. • ~75% reducti
Slide 41: Parent capital expenditure 2019 - 2025
Parent capital expenditure 2019 - 2025 $100,000 $80,000 $60,000 21,450 $000s $40,000 3,650 70,000 44,322 $20,000 40,073 38,228 2,850 35,000 23,796 18,612 $0 2019 2020 2021 2022 2023 2024F 2025 Ruakura Inland Port 41
Slide 42: Outlook 2024
• Domestic consumption remains volatile impacting import demand. • Windthrown logs expected taper off second quarter 2024 full year forecast ~6.6M JAS. • Record kiwifruit season forecast -193M trays. Outlook 2024 • FY24 earnings guidance remains unchanged at $95 -$107 million. • Service delivery and