Diverse portfolio delivers a $64.6m profit to Port Otago
Port Otago today announced a Net Profit After Tax of $64.6 million for the 2024/25 year, compared to $30.4 million the previous year. This net profit result includes property revaluations of $33.0 million, while the underlying profit result was $36.9 million, up 7% on last year’s $34.4 million result.
Port Otago uses underlying profit to measure its business performance, as it shows profit made from the four core business units – container, bulk, cruise and property – and excludes the impact of property revaluations.
The company paid an annual dividend of $18.0 million to its shareholder, the Otago Regional Council (ORC) – up $2.0 million on last year and in line with the Statement of Corporate Intent.
Port Otago Chair Tim Gibson presented the financial results to the ORC this afternoon. He says that, while the four business units had mixed results, the overall result reinforces the strength of a diverse business portfolio.
“Property performed well, with property rental income up $2.4 million on last year. Container throughput was down 7% to 249,000 TEU, due to the loss of MSC’s Capricorn service in the first quarter of the financial year and Maersk’s Polaris service in November 2024. We did, however, pick up the new Maersk Northern Star service, which continues on direct to China and is being well supported by our region’s exporters.
“Cruise income was down, with 91 cruise vessels calling compared to 118 last season. It will be leaner still this coming season, with only 80 vessels booked.”
Bulk cargo volumes remained similar to last year at 1.7 million tonnes, reflecting the stable nature of non-containerised cargo flows in and out of our region.
Group revenue was almost identical to last year at $132 million, compared to $133 million. Operating expenses were up 8% to $94.4 million. This included a $2.7 million increase in the cost of materials and services, related to increased maintenance costs and higher IT costs, as Port Otago transitions to being data led in its day-to-day business.
In October 2024, Port Otago reached the extraordinary milestone of 150 years of operations. During the official celebration at the Dunedin Town Hall, attendees reflected on achievements and challenges faced by our forebears. “We recognise that, in 2025, we are navigating the same challenges – larger ships, needing more landside space, managing extreme weather and harnessing new technology. Port Otago is here for the long-term, contributing towards a healthy future for our owners – the people of our region.
“To that end, we have refined our strategy over the past 12 months. Supporting our ‘always open’ policy, we are also focused on creating space to grow and being data led in our decision making. Southern Link is key to addressing our wharf-side space constraints. In relation to being data led, we have taken significant steps towards improving our raw data and we are already a stronger business for it.
“In the 12 months to 30 June 2025, more than $70 million was invested in long-term assets, including ordering a new $36 million dredge – jointly with Napier Port – and a $15 million Damen tug, the $14 million rail pad project, early stage development of Southern Link and development of the ORC head office in Dunedin. This is on top of investing $47 million developing assets last financial year.”
Looking ahead, Mr Gibson says shipping reliability is expected to remain volatile, due to ongoing global supply chain issues.
“Consenting and construction of Stage 2 of Southern Link is a key project for the next 12 months. We are also looking forward to being big-ship capable by the second half of the financial year, with the arrival of our new Damen tug in January. Attention will then turn to reinforcing our harbour defences to withstand more frequent extreme weather events. Channel design work – including strengthening the Aramoana mole – is due for completion around mid next year.”
Mr Gibson says the further reduction in cruise ship volumes for 2025/26 is disappointing, but recent government support for the cruise sector will help rebuild cruise numbers in the years ahead.
“We look forward to supporting customers’ growth on the back of an improved economy. We are well placed to partner and invest, as we continue creating value for our community-owned shareholder.”