LYTTELTON Port Company has reported an improvement in financial performance for the first half of the financial year, despite a decrease in trade volumes.

Posting its interim results for the six months to 31 December 2024, LPC described continued challenging economic conditions in New Zealand and a shortfall in exports.

However, the South Island port saw operating revenue increase 8.3% to NZD$100.82 million, and NPAT up 51.4% to NZD$12.23 million.

Its EBITDA increased 29.9% to NZD$31.04 million, and its expenses increased 0.8% to NZD$69.78 million.

LPC chief executive Graeme Sumner attributed the operating revenue results to effective cost management and market-based pricing.

“We have managed to stabilise our financial position despite challenging market conditions,” Mr Sumner said.

He said the port’s EBITDA results are a “significant improvement” on last year, but called it the first step on the company’s path to financial stability.

“Lyttelton Port does not generate sufficient returns on its capital base, and we have been underperforming against our peers for at least the last decade,” he said.

“We have to get to the point where we can fund replacement capital and pay an acceptable dividend to our shareholder.”

Trade volumes decreased 3%. The port reported a decline in container numbers and bulk trade, including car imports (down 20%) and coal exports (down 33%).

“Containers fell to 218,319 TEU, down 3% on the same six-month period last year,” Mr Sumner said.

“This was primarily driven by a shortfall in exports and drop in transshipments.”

LPC also noted that it is about to commence Stage 2A of the Te Awaparahi Bay Land Reclamation, a NZD$50-million construction project reclaiming a seven-hectare site to enable the future development of a deep-water berth.

“This is a critical infrastructure project that will protect Lyttelton Port Company and provide certainty for the Canterbury and South Island economy,” Mr Sumner said.

“It also adds to the resilience of the port in the event of another seismic event.”

LPC is 100% owned Christchurch City Holdings Limited.