Port of Tauranga Earnings: Weak Economic Conditions Weigh on Profits

Wide-moat-rated Port of Tauranga’s fiscal 2024 underlying net profit after tax fell 13% to NZD 103 million on lower trade volumes and higher operating costs, close to our expectations. Total trade fell by 4% to 23.6 million metric tons because of economic weakness and supply chain challenges. Imports were particularly weak, down 13% because of weak domestic demand and higher rail costs that encourage ships to bypass Port of Tauranga. Exports rose by 1%, helped by a large increase in log supply because of storm-damaged trees that had to be harvested early. Log volumes are likely to normalize in 2025.