Lyttelton Port Company (LPC) has reported a net profit of $15.5 million for the financial year 2024, down 18% from $18.9 million last year.
Despite this, the company saw its earnings before expenses like interest and taxes go up by nearly 14%, reaching $52.4 million, thanks to an increase in revenue.
LPC Chair Barry Bragg said, “Our earnings will need to keep improving to justify our large investments and support future growth.”
Container volumes at the port stayed mostly the same, with a slight drop of 1.6% from last year. Bragg said that efficiency and productivity are crucial for their customers, adding, “We are focused on delivering the safe and efficient performance our customers expect. This has been a major focus for us, and it will continue to be in the coming year.”
Health and safety remain top priorities for LPC. “The Board has been working hard to improve health and safety at LPC. We have a detailed plan to enhance leadership, improve work practices, upgrade equipment, and ensure our workforce is healthy,” Bragg said. LPC is also halfway through a three-year programme aimed at reducing risks in operations.
Changes in tax laws resulted in a one-off charge, bringing the net profit down to $9.9 million. Operating costs also increased by 4.3% due to rising wages and material costs.
LPC CEO Graeme Sumner said, “The team has worked hard to manage costs, and this will continue. We need to be more efficient to meet shareholders’ expectations and to invest in future infrastructure.”
LPC paid $10.6 million in dividends this year and managed to keep its debt relatively stable at $215.3 million. Sumner said that next year’s spending on new projects will be moderate, helping to keep debt levels steady.
The company saw mixed results in its trade activities, with a small increase in full container exports but a 9% drop in bulk goods like logs and cars. Sustainability remains a key focus, with LPC committing to reducing its carbon emissions by 50% by 2030. “We are also focusing on our impact on nature and will release our first report on this later this year,” Sumner said.
