Port Of Tauranga LimitedNZX: POT

Mid-year Market Update February 2025

Feb 27, 2025 at 8:00 PM UTC · Issued by Port of Tauranga Limited

Stand for the future.

Port of Tauranga Limited

Scroll down to view the reportMarket Update and Interim Consolidated Financial Statements February 2025

Lower emissions

Port of Tauranga intends to decarbonise its container operations by introducing automation. Electric auto stacking cranes will also enable increased throughput.

Greater efficiencies

The planned berth extension at Sulphur Point, together with automation, will allow Port of Tauranga to significantly increase container throughput.

Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Stand for

New Zealand.

Port of Tauranga is investing for the future to ensure New Zealand has a resilient, efficient and low carbon gateway to and from international markets.

Port of Tauranga is connecting

New Zealand and the world.

Expanded capacity

Future plans include development of the bulk cargo wharves at

Mount Maunganui to increase capacity and efficiency.

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Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Contents

03 Highlights and challenges

04 Chair and Chief Executive's review

06 Update: Stella Passage project progress

07 Update: New crane at container terminal

08 Interim consolidated financial statements

09 Consolidated income statement

Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of financial position
Consolidated statement of cash flows
Notes to the interim consolidated financial statements

Independent auditor's review report
Company directory

Highlights and challenges

Six months ended 31 December 2024

Group Net Profit After Tax	Imports	Subsidiary and associate
millions	million tonnes	company earnings

$60.2	4.4	1.1%
a 27.4% increase from $47.2 million	a 14.9% increase from 3.9 million tonnes	increase
Total trade	Exports	Interim dividend
million tonnes	million tonnes
12.4	8.0	7.0c
a 6.9% increase from 11.6 million tonnes	a 3.0% increase from 7.8 million tonnes	compared with 6.0 cents per share
Container volumes	Log exports
TEUs1	million tonnes
591,934	3.2
a 10.2% increase from 536,928	a 10.5% decrease from 3.6 million tonnes
Ship visits	Direct dairy exports
	million tonnes
690	0.96	1 TEUs = twenty foot equivalent units,
an increase of 2.4% from 674	a 1.2% increase	a standard measure of shipping containers

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Chair and Chief Executive's review to shareholders

Port of Tauranga Limited has delivered a strong performance for the six months ended 31 December 2024, with Group Net Profit After Tax of $60.2 million, a 27.4% increase on the same period last year.

Earnings and trade volumes recovered well after a particularly challenging start to the previous 2024 financial year.

Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Total trade volumes increased 6.9% to 12.4 million tonnes and containers increased 10.2% to 591,934 TEUs compared with the prior corresponding period.

Although log exports dropped relative to the high volume of wind-damaged logs in the previous year, international demand for other key export commodities saw steady export trade in the first half. Bulk cargo volumes increased, particularly for imports.

The Port's continuous focus on service delivery saw further reductions in vessel wait times, and productivity improvements across the port are being implemented. Further gains remain challenging due to vessels continuing to arrive off schedule and berth capacity shortages. The capacity constraints can be alleviated through our planned Stella Passage development.

Our financial results

Operating revenue was $225.0 million, a 12.5% increase from the $200.0 million reported in the six months to December 2024. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) increased

17.9% to $114.3 million. Operating costs increased 7.2% to $113.9 million.

Subsidiary and associate company earnings remained steady compared with the previous corresponding period.

The Port of Tauranga Board of Directors has declared a fully imputed interim dividend of 7.0 cents per share.

Our strategic projects

Port of Tauranga and its consortium partners (Northland Regional Council and Tupu Tonu - Ngāpuhi Investment Fund) have conditionally agreed to buy out minority shareholders in Marsden Maritime Holdings. Marsden Maritime Holdings currently owns 50% of Northport, with Port of Tauranga owning the other 50%.

The proposal would then merge Northport and Marsden Maritime Holdings, in which Port of Tauranga would own 50%. It is now subject to community consultation with Northland ratepayers and shareholder vote. Further details can be found on the Port of Tauranga website.

Julia Hoare	Leonard Sampson
Chair	Chief Executive

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Chair and Chief Executive's review to shareholders

Our long-running Stella Passage development resource consent application in the Environment Court is on hold pending an application under the new Fast-track Approvals Act. In December, we received a second interim decision from the Court confirming that consent would be granted for part of the Stella Passage project subject to revised conditions. However, that interim decision has been appealed to the High Court by three parties.

Given the urgency of the project, to protect the interests of New Zealand importers and exporters, we are preparing an application to be lodged under the new legislation. Read more on page 06.

Ruakura Inland Port, near central Hamilton, has been open for 18 months and played a critical role as part of a road bridge implemented by KiwiRail during the Auckland rail network shutdown in January.

The inland port, which is a joint venture with Tainui Group Holdings, has recently expanded to include a new empty container depot leased to ContainerCo.

Bulk cargo imported volumes were boosted by the return of coal shipments after several years' hiatus. Genesis Energy recommenced coal imports for Huntly Power Station following last winter's energy generation shortages.

Linked to favourable dairy commodity pricing, fertiliser imports increased 62.6% in volume and stock feed imports increased 35.6% in volume. Oil imports remained steady compared with the same period last year.

Our people

We launched a major project to modify the gantry access ways for our refrigerated storage areas, where powered containers are stacked up to three high, to mitigate working at height and straddle- versus-person risk for technicians.

Our environment

Port of Tauranga is one of 29 signatories to the new Mount Maunganui Industry Environmental Accord, which aims to improve air quality through a range of initiatives over and above

Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Port of Tauranga is one of 29 signatories to the new Mount Maunganui Industry Environmental Accord.

We have dismantled our two oldest ship-to-shore container cranes and commissioned a new crane that has just been put into service after being assembled on site. Read more on page 07.

Cargo trends

Export log volumes decreased 10.5% to 3.2 million tonnes. However, other forestry product exports including sawn timber increased in volume.

Direct dairy exports increased 1.2%, while transhipped dairy volumes rebounded strongly, increasing 81% compared with the first half of last financial year.

The reporting period covered the end of the record-breaking 2024 kiwifruit export season. Export volumes increased 71% compared with the previous corresponding period.

compliance measures.

Our community

In September we announced a new, long-term partnership with Mount Maunganui Lifeguard Service. The two organisations share a strong connection to the sea and the Mount Maunganui community.

The sponsorship complements our support of the Port of Tauranga Rescue Centre at Omanu Beach. The centre opened in 2022 and serves as a hub for the 19 surf life saving clubs in the eastern region, from Hot Water Beach through to Gisborne.

The outlook for 2025

Port of Tauranga is expected to continue to recover from the economic downturn, although domestic conditions remain challenging in the short-term and the international geopolitical situation remains unpredictable. We are, however, seeing steady demand for New Zealand exports.

Given the strong first half performance and steady export trading conditions, Port of Tauranga lifts its profit guidance range issued in October, with underlying1 Group earnings expected between $115 million and $125 million for the 2025 financial year, compared with underlying Group profit of $102.7 million ($90.8 million reported) for the 2024 financial year.

Port of Tauranga's annual results for the year ended 30 June 2025 will be announced on Friday, 29 August.

Julia Hoare

Chair

Leonard Sampson

Chief Executive

1 Underlying earnings excludes such items as revaluations, impairments and one-off non-operating items.

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Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Update

Stella Passage project progress

Port of Tauranga's proposed Stella Passage development will see current cargo storage land on both sides of the harbour converted into useable berths, with some associated dredging and reclamation.

In December, Port of Tauranga received

a second interim decision of the Environment Court confirming that resource consent would be granted for part of the project, involving up to 285 metres of additional berth to the south of the Port's existing container berths.

The Court decision required some specific amendments to the proposed conditions, however noted that the physical effects of the project are expected to be minor in the short term and negligible in the long-term.

The Court's decision has been appealed by three parties.

In the meantime, Port of Tauranga is preparing an application under the new Fast-track Approvals Act that commenced on 7 February. The entirety of the Stella Passage development, which includes a second stage to the container berth extension as well as proposed works at the Mount Maunganui wharves, has been listed in the legislation.

The extension is urgently required national infrastructure and Port of Tauranga remains keen to move as quickly as possible to commence construction.

Detailed planning and consultation began in 2019 and an application was filed with the Environment Court in 2021.

A three-week Environment Court hearing in March 2023 was followed by an interim decision released in December 2023 requiring Port of Tauranga to undertake further engagement with local iwi and hapū and the Bay of Plenty Regional Council.

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Update

Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

New crane at container terminal

A new crane has joined the line up at the Tauranga Container Terminal as part of Port of Tauranga's infrastructure renewal programme.

The oldest two cranes in our fleet have been dismantled - the first in July 2023 and the second in October 2024 - after more than 30 years' service and more than 1.8 million lifts each.

The new ship-to-shore gantry crane is the same size as the last crane commissioned, in 2020. It is Super Post Panamax in class, with an outreach of 50.5 metres to service ships up to 19 containers wide and a height of 105 metres boom up.

The $20 million crane came in parts from the Liebherr factory in Ireland, was assembled on site over 12 weeks, before being skidded out on to the berth in a 48-hour operation.

It is expected to make three million moves in the next 25-plus years.

Port of Tauranga now has a fleet of eight all-electric cranes and the next purchase will align with the construction of the new container berth.

(Left) The new crane arrived in parts from the Liebherr factory in Ireland.

(Right) The crane was assembled at the terminal before being moved on to the berth.

Port of Tauranga now has a fleet of eight all-electric cranes.

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Interim Consolidated

Financial Statements

for the six months ended 31 December 2024 Port of Tauranga Limited and Subsidiaries

Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Contents
Consolidated Income Statement	09
Consolidated Statement of Comprehensive Income	09
Consolidated Statement of Changes in Equity	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Cash Flows	12
Notes to the Interim Consolidated Financial Statements	13
Independent auditor's review report	18
Company directory	19

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Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Port of Tauranga Limited and Subsidiaries

Consolidated Income Statement

for the six months ended 31 December 2024

	(Unaudited)	(Unaudited)	(Audited)
	Six Months Ended	Six Months Ended	Year Ended
	31 December 2024	31 December 2023	30 June 2024
	Group	Group	Group
	NZ$000	NZ$000	NZ$000

Total operating revenue (refer to note 6)	224,998	200,011	417,375
Contracted services for port operations	(45,810)	(47,285)	(95,668)
Employee benefit expenses	(32,340)	(28,001)	(57,891)
Direct fuel and power expenses	(8,832)	(7,904)	(18,761)
Maintenance of property, plant and equipment	(9,537)	(8,345)	(16,553)
Other expenses	(17,380)	(14,735)	(29,708)
Operating expenses	(113,899)	(106,270)	(218,581)

Results from operating activities	111,099	93,741	198,794
Depreciation and amortisation	(21,759)	(22,087)	(43,770)
Reversal of previous revaluation deficit of property,	0	0	622
plant and equipment
Impairment of property, plant and equipment	0	0	(28)

	(21,759)	(22,087)	(43,176)
Operating profit before finance costs, share of profit	89,340	71,654	155,618
from Equity Accounted Investees and taxation
Finance income	341	215	657
Finance expenses (refer to note 7)	(10,945)	(11,248)	(23,128)

Net finance costs	(10,604)	(11,033)	(22,471)
Share of profit from Equity Accounted Investees	3,243	3,250	4,945

	3,243	3,250	4,945
Profit before income tax	81,979	63,871	138,092
Income tax expense	(21,781)	(16,630)	(47,243)

Profit for the period	60,198	47,241	90,849
Basic earnings per share (cents)	8.9	7.0	13.5
Diluted earnings per share (cents)	8.8	6.9	13.3

Port of Tauranga Limited and Subsidiaries

Consolidated Statement of Comprehensive Income

for the six months ended 31 December 2024

				(Unaudited)	(Unaudited)	(Audited)
				Six Months Ended	Six Months Ended	Year Ended
				31 December 2024	31 December 2023	30 June 2024
				Group	Group	Group
				NZ$000	NZ$000	NZ$000

Profit for the period			60,198	47,241	90,849
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Cash flow	hedge	- changes in fair value	(4,086)	(2,550)	587
Cash flow	hedge	- reclassified to	profit or loss	(1,762)	(1,296)	(3,114)
Share of net change in cash flow	hedge reserves	(284)	(216)	(218)
of Equity Accounted Investees
Items that will never be reclassified to profit or loss:
Asset revaluation, net of tax		0	0	52,006
Share of net change in revaluation reserves of	71	1	9,340
Equity Accounted Investees
Total other comprehensive (loss)/income	(6,061)	(4,061)	58,601

Total comprehensive income		54,137	43,180	149,450

These statements are to be read in conjunction with the notes on pages 13 to 17.	09

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Port of Tauranga Limited - Market Update and Interim Consolidated Financial Statements February 2025

Port of Tauranga Limited and Subsidiaries

Consolidated Statement of Changes in Equity

for the six months ended 31 December 2024

	Share	Share Based	Hedging	Revaluation	Retained	Total
	Capital	Payment Reserve	Reserve	Reserve	Earnings	Equity
	Group	Group	Group	Group	Group	Group
	NZ$000	NZ$000	NZ$000	NZ$000	NZ$000	NZ$000

Balance at 30 June 2023	75,360	5,387	11,509	1,932,456	109,004	2,133,716
Profit for the period	0	0	0	0	47,241	47,241
Total other comprehensive income	0	0	(4,062)	1	0	(4,061)
Total comprehensive income	0	0	(4,062)	1	47,241	43,180
Decrease in share capital	(815)	0	0	0	0	(815)
Dividends paid during the period	0	0	0	0	(59,875)	(59,875)
Equity settled share based payment accrual	0	697	0	0	0	697
Shares, previously subject to call option, issued	4,722	(4,722)	0	0	0	0
Shares issued upon vesting of management long term incentive plan	300	(510)	0	0	210	0
Total transactions with owners in their capacity as owners	4,207	(4,535)	(4,062)	1	(12,424)	(16,813)

Balance at 31 December 2023	79,567	852	7,447	1,932,457	96,580	2,116,903
Profit for the period	0	0	0	0	43,608	43,608
Total other comprehensive income	0	0	1,317	61,345	0	62,662

Total comprehensive income	0	0	1,317	61,345	43,608	106,270
Decrease in share capital	(4)	0	0	0	0	(4)
Dividends paid during the period	0	0	0	0	(40,814)	(40,814)
Equity settled share based payment accrual	0	802	0	0	0	802
Total transactions with owners in their capacity as owners	(4)	802	0	0	(40,814)	(40,016)

Balance at 30 June 2024	79,563	1,654	8,764	1,993,802	99,374	2,183,157
Profit for the period	0	0	0	0	60,198	60,198
Total other comprehensive income	0	0	(6,132)	71	0	(6,061)

Total comprehensive income	0	0	(6,132)	71	60,198	54,137
Increase in share capital	88	0	0	0	0	88
Dividends paid during the period	0	0	0	0	(59,183)	(59,183)
Equity settled share based payment accrual	0	918	0	0	0	918
Shares, previously subject to call option, issued	1,382	(1,382)	0	0	0	0
Shares issued upon vesting of management long term incentive plan	4	(174)	0	0	170	0

Total transactions with owners in their capacity as owners	1,474	(638)	(6,132)	71	1,185	(4,040)

Balance at 31 December 2024	81,037	1,016	2,632	1,993,873	100,559	2,179,117

These statements are to be read in conjunction with the notes on pages 13 to 17.	10