PORT Taranaki’s total trade for the six months to 31 December plunged 28% compared with the same period last financial year.

The North Island port handled 1.48 million tonnes of trade in the first half of the 2024-25 financial year – a 565,000-tonne reduction on the corresponding period in 2023.

Central to the reduction was a 500,000-tonne (or 42%) drop in overall liquid bulk volumes, including methanol, across the port to 629,000 tonnes.

For the six months to 31 December 2024, Port Taranaki recorded a net profit after tax of NZ$3.87 million, which was 9.4% down on the NZ$4.27 million for the corresponding period in 2023.

Total revenue for the period was NZ$25.91 million, which was down on the NZ$27.43 million recorded in the same period the previous year.

Operating costs were NZ$19.57 million, compared with NZ$20.81 million, as marginally higher personnel costs were offset by lower insurance and repairs and maintenance costs.

Port Taranaki attributed its half-year trade results to New Zealand’s energy supply shortage, particularly the winter months last year.

Methanex, New Zealand’s only methanol manufacturer, temporarily ceased production at its Taranaki plant in August last year as it entered short-term commercial arrangements to provide contracted natural gas into the NZ electricity market until the end of October.

“Methanex is our largest customer, so any change in methanol production has an impact on overall bulk liquid volumes and, subsequently, total trade volumes through the port,” Port Taranaki chief executive Simon Craddock said.

“Although it impacted our business, we supported Methanex’s decision last year to cease methanol production for a period and then move to a one-plant operation so gas could be used to produce electricity and prop up New Zealand’s constrained energy market.”

Mr Craddock said the decisions were born out of necessity through a combination of a dry year for electricity generation and the decline in gas reserves.

“At the time, we said the situation highlighted the need to find a quick solution to the energy shortage to ensure short and long-term energy security and resilience, and we remain committed to being part of the solution, such as the port of entry for LNG imports in the short to medium term, and as a base for offshore wind energy production development in the longer term,” he said.

The reduction in liquid bulk volumes had a flow-on effect on vessel visits for the first half of the financial year, with 115 vessels coming to port, down from 126 in the same period in 2023.

“It was a difficult first six months of the year, not only for our business but for our customers as well, and we thank them for their ongoing support during challenging times,” Mr Craddock said.

“Our Port Taranaki team have worked extremely hard to produce an interim result which, while lower than recent years, is commendable considering, and in spite of, the tough market, trade and business conditions.”

Mr Craddock said Port Taranaki had been encouraged by the government’s renewed focus on unshackling the energy sector and enabling fresh investment.

“We believe Port Taranaki has the location, enabling infrastructure, and skills, to support new business across multiple industries, including renewable energy, LNG imports, offshore decommissioning, and mining. We look forward to playing our part to help these big opportunities become reality,” Mr Craddock said.

He said Port Taranaki would also look to capture more offshore work.

“We’ve successfully started providing regular offshore marine services for offtakes at the Maari oil field, and have been upskilling our marine team, including marine pilots and tug and launch crews.

“We have the location, vessels and ability to support offshore activity and have fixed costs, which means we can support these services at a low cost.”