Port of Tauranga Limited Analysis

Overview

The company was listed in May 1992 following a public issue of 33.6m shares at $1.05, which included a total of 12.6m shares previously owned by the Waikato Regional Council, and coincided with completion of a $53m expansion of port and cargo handling facilities.

The company's business predominantly services the forestry and farming industries in the region. Since listing the company has recorded strong growth in cargo volumes and increasing emphasis on container traffic. Significant recent initiatives have included establishment of Metroport, an inland port in South Auckland for the aggregation and distribution of import/export cargo, a 50:50 joint venture project with Northland Port to develop and operate a new $65m deepwater port (Northport) at Marsden Point in Northland, and acquisition of log handler Owens Services BOP (which operates in 10 ports.

POT derives its revenue through three main streams: port services, rental income and rental from investment properties. Other income also comes from investment dividends and fair value gains (losses).

POT has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because under the Port Companies Act 1988, changes to POT's Constitution must be approved by the Minister of Transport. For further information, please see the Port Companies Act 1988 which is publicly available at www.legislation.govt.nz.

Performance

The following information was extracted from Port of Tauranga Limited's full year results, released 29 August 2025

Port of Tauranga delivers strong financial performance amid growing capacity constraints

Financial results for the year ended 30 June 2025

Port of Tauranga Limited (NZX:POT) today reported strong financial results for the year on the back of resilient export volumes.

New Zealand’s busiest port saw total trade increase 7% on the previous year, to 25.3 million tonnes. Container volumes increased 5.3% to 1.2 million TEUs .

Underlying Group Net Profit After Tax was $126.0 million, a 23% increase on the previous year.

A judicial review of the Port’s fast-track application for the Stella Passage development has been upheld, with the High Court determining the Environmental Protection Authority should not have accepted the application as the project was not exactly as described in schedule 2 of the legislation.

The legislative drafting error has resulted in the Court putting the fast-track process on hold. The expert panel was due to commence on 1 September.

The ongoing delays in obtaining a resource consent for the Stella Passage development are extremely frustrating and are reaching crisis point as the Port is forced to turn away shipping services due to a lack of berth capacity. In the last month, the Port has had to decline a proposed new service to the Americas that would have provided New Zealand importers and exporters with an estimated $65 million to $90 million per annum in international freight savings.

Highlights and challenges

For the year ended 30 June 2025 (compared with the previous financial year)

• Group Net Profit After Tax: $173.4 million (a 90.8% increase, includes a one-off gain of $49.2 million from the sale of Northport Limited as a result of the Marsden Maritime Holdings acquisition)

• Underlying Group Net Profit After Tax: $126.0 million (a 23% increase)

• Total trade: 25.3 million tonnes (a 7.0% increase)

• Container volumes of 1.2 million TEUs (a 5.3% increase from 1.15 million)

• Revenue: $464.7 million (an 11.3% increase from $417.4 million)

• Imports: 8.9 million tonnes (a 13.9% increase from 7.8 million tonnes)

• Exports: 16.4 million tonnes (a 3.6% increase from 15.8 million tonnes)

• Ship visits: 1,442 (up from 1,427)

• Final dividend: 9.7 cents per share (up 11.5% from 8.7 cents per share)

• Total ordinary dividend for FY25: 16.7 cents per share (up 13.6% from 14.7 cents per share)

• Ruakura Inland Port volumes more than doubled cargo volumes in its second year, to 22,525 TEU

• Successful completion of the Marsden Maritime Holdings acquisition and formation of Northport Group Limited, joining port operations and the adjacent landholdings to unlock development potential.