$5.8m dividend for region

The port and airport will deliver almost $3 million in dividends for each of the Nelson and Tasman councils despite a challenging year.

Port Nelson accounted for the bulk share of the total $5.8m of dividends.

Chief executive Hugh Morrison says the port was helping to facilitate regional prosperity.

“Delivering a $4.5 million dividend for the benefit of our local community is a priority here at the port, considering the positive impact it has on reducing rates for local ratepayers.”

The dividend was in line with Port Nelson’s budgets, despite “challenging” trading conditions.

Cargo of logs, wine, and processed timber – three of the port’s larger cargo types – experienced lower volumes in the past financial year than the year before.

Shipping line changes also saw fewer vessels and less equipment stored at the port, while increased interest, insurance, and payroll costs also impacted the port’s bottom line.

Net profit after tax for Port Nelson was $6.2 million, down $1.5 million from last year.

However, with $20.7 million invested into infrastructure projects like the slipway redevelopment and a new electric mobile harbour crane are hoped to enhance profitability and increase dividends for future years.

Port Nelson is on track to reduce its carbon emissions by 67 per cent by 2035, with emissions down 25 per cent from 2019 levels.

Hugh retires in November and port chair Paul Zealand says the outgoing chief executive “leaves a legacy” in the port team.

Nelson Airport contributed the remaining $1.3 million of the $5.8m total, an airport “record” according to board chair Quinton Hall.

The returns are despite “flat” passenger number when compared to the year before, as well a tax change that resulted in a one-off non-cash impact which led to a post-tax deficit of $3.6m.

The airport also struggled with high interest rates, slow economic growth, as well as rising airfares and aircraft reliability challenges.

However, company earnings – before interest, taxes, depreciation and amortisation – was up 15.6 per cent, buoyed by strong overall revenues and cost management.

Quinton adds that the year had seen improvement despite the economic challenges with the completion of two new buildings for airport tenants, terminal upgrades, as well as stormwater and hanger works.

The airport continues to work towards voluntary climate reporting to meet national standards, while its first climate report was released this year.