Napier Port Holdings Limited (NPH) Earnings Call Transcript & Summary

Thank you for standing by. Welcome to the Napier Port Holdings Limited 2024 Annual Results Announcement. [Operator Instructions] I would now like to hand the conference over to Mr. Kristen Lie, Napier Port's Chief Financial Officer. Please go ahead.

Good morning, and welcome, everybody, to the Napier Port Holdings 2024 Annual Results Call. My name is Kristen Lie, CFO, and I'm joined on this call this morning by Todd Dawson, Chief Executive; and Blair O'Keeffe, the Chair of Board of Directors. During this morning's presentation, we report on the highlights of our full 2024 financial year, including some detailed analysis of our financial results. We will reference a suite of information released earlier today on the NZX reporting platform and also available in the Investors Center section of our website. At the end of our presentation, we will be happy to respond to any related questions you may have. Now I hand over to Blair to get things underway.

[Foreign Language] I'm Blair O'Keeffe, Chair of the Napier Port Board. Thank you for joining us today as we review what has been a milestone year for Napier Port. Despite the challenges we faced following the impact of Cyclone Gabrielle, I'm pleased to report that our region and cargo volumes are getting back on track. This year, we achieved new financial milestones that underscore the positive momentum across our mixed revenue streams. Our cargo base continues to be both diverse and resilient supported by robust infrastructure and a highly capable team. As we move through the year, a steady recovery in volumes was evident across log exports, fresh produce and the buoyant cruise season. coupled with operating leverage, the return of volume has delivered a strong financial result. Looking forward, we are confident in the momentum of volume and earnings growth. With infrastructure, capabilities and a proven track record of operational resilience in place, Napier Port is well positioned to build on the success of this year and continue serving our customers and region effectively. Todd will now take us through the year's results.

Thank you, Blair, and good morning, and thank you for joining us today, everybody. As we look back on what has been a year of strong recovery and increased cargo flows for Napier Port. Trade is returning following Cyclone Gabrielle last year, supported by the diversity and resilience of our cargo base and also Napier Port's operational capacity and flexibility. Impairing our trade volumes to the previous financial year, total trade increased 8.1% to just under 5 million tonnes. This was driven by strong volumes of log exports, the bounce back in containerized exports of fresh produce, apples, meats and timber and a record cruise season. Containerized volume increased by 3.4% to 230,000 TEU. Good growing conditions supported the rebound in refrigerated cargo, fresh produce, apples and meat. And dry containerized cargo picked up as Pan Pac's pulp and timber production continued its ramp up. Bulk cargo volume increased by 9% to 3.47 million tonnes, underpinned by strong log exports, including from logs sourced from windthrown forest and unprocessed logs from Pan Pac. In the second half of the year, 2 of our largest cargo customers, WPI and Pan Pac undertook temporary shutdowns of either all or part of their timber and pulp processing facilities as a result of high energy costs. WPI announced in September, the closure of its pulp and timber mills. Since the WPI closure, we've been receiving additional logs from Ernslaw One, a member of WPI's parent group, and we've taken steps to reset our cost base by resizing our operational volume reduction in pulp and timber blades. With the level of increased log volumes and actions taken to reduce our cost base, this provides us confidence that the net impact on operating earnings is not significant and will not adversely impact on our ability to continue to grow our earnings. We hosted 89 cruise vessel calls compared to 64 in the previous year, bringing a record number of passengers to the region. Just moving to Slide 7. Turning to our financial results. Earnings growth has been strong and reflects the diversity across our cargoes and revenue streams. Revenue increased to a record $141.4 million, a 15.9% increase on last year's record revenue. This was primarily due to strong volumes of log exports. Cruise revenue and average revenue per unit increases linked to our investments in infrastructure and customer services on board. As Cargo volumes returned, our strategy is focused on yield management and cost management have developed strong operating leverage and earnings growth with the results from operating activities increasing to $52 million, which is a 39.5% increase on last year. Moving to Slide 8. With the recovery of cargo volumes, activity on ports increased significantly. This ramp-up came with some expected pressures as we maintained a freeze on recruitments and deferred spending following the cyclone in 2023. By taking a dynamic approach to deploying assets and resources, we are able to adapt our operations and optimize space on port. For example, cruise ships, bulk cargo, vessels for logs and container ships were flexibly berthed across Wharf on a various basis. Space, equipment and personnel were allocated according to demand, ship exchange sizes and a shipping schedules would require us, too. This adaptable approach allowed us to accommodate our customers' shifting requirements such as changes in volume or cargo type as they continued their own recovery efforts. The year has shown the effectiveness of our flexible whole of port approach, which is delivering efficiency gains and flexibility for Napier Port and our customers. Our ability to adapt and be responsive is closely linked to our strategic investments in infrastructure and customer service enhancements. The Whiti Wharf continues to ease congestion by expanding berth availability reducing wait times for vessels and minimizing ship movements within the ports harbor. Log debarking operations, approximately 10% of all export logs are now processed through our log debarker facility where demand continues to grow. And expanded payment works, these uprates created additional storage space that was used to establish a wood chip operation supporting Pan Pac during its post-cyclone closure. Currently, additional logs from WPI's parent company are now utilizing the storage space also. And in the future, we have the flexibility to use the space for containers or other purposes. These investments, coupled with our dynamic approach generating operational efficiencies that underpin our strategies for yield management and our strong financial position. Moving to Slide 9. Having built capability into our workforce equipment and infrastructure, our focus is turning towards utilizing this capability to continue to transform our business. The strong recovery seen this year across key cargoes gives us confidence in volume rebuilding within our existing cargo base. The reinvestment by Pan Pac into their operations and their subsequent rising production and continued visible investment in the port sector are indicators of demand and optimism in the region is building and particularly across the food and fiber produce areas. Napier Port Supply Chain Service viewpoint works closely with our jointly owned in Landport and Manawatu and with KiwiRail. Our partnership with KiwiRail is strong and collaboration has increased post cyclone and also post WPI's closure. This partnership extends our reach out of region by creating more options for cargo owners in the Central and lower North Island to ship via Nappier Port. In the face of tough times and changing circumstances, we responded by reshaping how we delivered our services and looking closely at our cost base. The priorities we're rightsizing, adaptability and flexibility. This journey continues as we look to respond to customer opportunities and how technology and other ways of working may enable us to grow and deliver further earnings growth. Closely led to this, we'll be continuing our focus on our cost to serve and working towards our medium-term goal of achieving returns in line with our cost of capital. Moving to Slide 10. We've had good momentum and continue on embedding sustainability across Napier Port. 79% of the more than 100 initiatives identified in 2021 are underway. This year, some of the highlights include running port tours for our local community, engaging our teams and our sponsorship of the [ sea gliders ] type sanctuary through planting days, a New Zealand first with the tracking of peers of [indiscernible] blue penguins to learn more about their behavior at sea and on land and the implementation of an environmental management system, including external certification to support this. I'll now hand over to Kristen.

Thank you, Todd, on Slide 12. This financial year, we again achieved significant total revenue growth, increasing $19.4 million year-on-year to $141.4 million. We saw this growth across all 3 service areas. Container services increased $8.2 million, bulk cargo increased $7.4 million and cruise increased $3.7 million. Container services revenue increased 11.4% year-on-year on 3.4% higher TEU volume and 7.8% higher average revenue per TEU or ARPU. Cargo laid in full export and import container volumes increased by 5,000 TEU, made up of 9,000 more reefer containers and 4,000 fewer dry containers. At the commodity level, higher reefers were driven by a rebound in apples and pears and other chilled products, which were impacted by Cyclone Gabrielle in the prior year. Lower dry containers were driven by lower wood pulp and timber and canned and other food and beverages. Empty container volumes increased 5,000 TEU, primarily due to the additional imported empty containers required for export cargo. While DLRs and transships decreased 2,000 TEU due to lower levels of container repositioning by shipping lines. Average revenue per TEU increased from $321 to $346, another strong result, driven by a number of factors, including container mix changes, tariff increases improved container depot revenues, partially offset by lower port pack in terms of storage contributions. On Slide 14. Focusing on containerized pulp and timber exports. In September, WPI announced the closure of all New Zealand manufacturing operations. In our '24 financial year, WPI containerized pulp and timber represented 18,000 of 124,000 full TEUs, approximately 7% of the result from operating activities, taking into account directly variable costs and revenues, while signaling the lost WPIs pulp and timber cargo throughput at Nappier Port. As Todd mentioned earlier, we are expecting an increased supply of export logs that otherwise would have been processed by WPI, and we've made changes to our cost base to reflect the new situation. And therefore, we expect to be a long way towards bridging the earnings impact of WPI's exit. We also understand that a possible sale of WPIs pulp timber mill plant and equipment remains on the table. Pan Pac have effectively completed the reinstatement of the processing plant following extensive damage from Cyclone Gabrielle. The timber mill is back to normal available capacity and their pulp mill is targeting normal operating capacity from December. With Pan Pac volume ramping up and assuming no other changes, at an aggregated level, we see containerized -- total containerized pulp and timber and a '25 financial year being similar to our '24 financial year. Slide 15. Bulk cargo revenue grew by 17.7% year-on-year or 9% higher bulk tonnes, an 8% higher average revenue per tonne. The volume increase was attributable to log exports, which is shown on the chart on the right, flow through the port much more consistently in 2024 compared to '23, where the second quarter was impacted by the cyclone. As noted previously, total loan volumes of 2.87 million tonnes were supported by the additional unprocessed logs of Pan Pac and the Central with post cyclone. The average revenue per tonne increase of 8% to $14.16 per tonne, increased as a result of customer mix changes, tariff increases and more log debarking, partially offset by a lower marine contribution. Cruise vessel calls nature continue to be a significant contributor to revenue, this year, increasing $3.7 million to $9.1 million on 25 more vessel visits. The current 2025 season is already underway, and we have hosted 7 vessels to date without disruption. We have 85 vessel calls booked for the season. And as we've noted earlier in the year, this season features on average, smaller vessels with fewer passengers. Slide 17. The result from operating activities of $52 million has increased $14.7 million or 39.5% as revenue increased by $19.4 million whereas operating expenses increased by $4.7 million. The operating result excludes $9.25 million of business interruption insurance income and related expenses reported within other income in our financial statements. As shown on a waterfall chart on the left, increase is attributed to higher trade volume, including cruise and improved yields or ARPU. Variable expenses, including fuel, electricity, stevedoring and other contract services have increased by $1.6 million on higher trade volumes. Other expenses have increased by $3 million and include higher insurance and higher employee benefit expenses. The margin chart on the right shows an improved operating margin of 36.8%, which has resulted from our continued focus on costs and operating leverage on higher year-on-year trade volume. Slide 18. Our results from operating activities was the key driver and our underlying net profit increasing $10 million or just under 95% to $20.7 million. Consistent with last year, we've adopted a conservative presentation to our underlying metrics by excluding BI insurance income due to matching and timing issues between underlying losses and the eventual accounting recognition of insurance income despite the fact that this income is compensating for lost operating earnings. Reported net profit after tax increased by $8.2 million or just -- or 50% -- just under 50% to $24.8 million in the year. This includes a net business interruption insurance income of $8.9 million, higher taxes on higher earnings and an additional $2 million tax charge for the recent change, removing tax depreciation on commercial buildings. A brief comment on the insurance process, a business interruption indemnity period ended in August. We are still working through claims. And whilst we expect some further insurance proceeds to come, we can't comment on the possible timing and amount. Capital expenditure during the year was $15.3 million or $13.1 million in actual cash flow spend terms. The spend was directed to mobile plant, wharf and site replacements and major maintenance and additional paved area within the container terminal. A number of larger site projects were initiated this year, the replacement of 3 Wharf fendering is complete. While maintenance dredging, breakwater and eastern beach protection works, we are underway at the end of the financial year and our plan to complete in the coming months. Capital spend is expected to increase next year to between $22 million and $27 million. This includes $13 million of committed spend, which incorporates the completion of site works already mentioned and the delivery of replacement overall part ordered earlier. 7 battery electric forklift has been ordered for our port pac operation, 5 further [indiscernible] for terminal operations. These machines are expected to reduce running costs as well as contributing towards emission reductions reduction pathway. Slide 20. Underlying cash flow from operating activities of $47 million, increased $10.6 million or 29% from the prior year. Reported cash flow from operating activities increased $16.7 million to $53.9 million and included insurance claim cash receipts of $9.3 million. Total dividends paid during the financial year of $13.1 million, included the final 2023 year dividend paid in December '23 and the '24 year interim dividend paid in June '24. Operating cash flow exceeded capital and financing outflows, leading to a $20.5 million reduction in gross debt during the year. Slide 21. We ended the financial year in a stronger capital position with gross debt totaling $109.5 million. In addition, we had $70.5 million in undrawn credit facilities available at the end of the period. Our debt-to-EBITDA ratio was 1.8x at the end of the period or 2.12x, excluding the benefits of the insurance claim income. As at 30 September, $85 million or 78% of our total gross borrowings was subject to fixed rates at a fixed underlying base interest rate, that is excluding margins and costs of 2.64%. Our operating cash flow growth and sound financial position has supported the Board's decision to increase the dividend for the upcoming December final dividend payment. We'll also note again here regarding the insurance risk reserve investment fund that we flagged with our half year investor presentation. We're expecting to commence funding of this during the '25 financial year. As a reminder, the initial funds target size of $25 million is to be established over 5 or more years. Lastly, a brief update on our sustainability emissions. This year, we've issued our fourth climate change report and third, with certified emissions. Total gross emissions increased by 0.3% compared to 2023. This was driven by higher Scope 1 emissions and a particular high usage by generators used for higher reefer container volumes. We also saw lower fuel usage by forklifts due to recent equipment replacements and fewer vessel calls. Scope 2 emissions, essentially electricity consumption related, decreased substantially despite increased electricity usage as a result of official emission tax changes. Emissions intensity on a per cargo tonne basis decreased 7.2%. The overall small total admission increase occurred while overall cargo tonnage increased by higher amounts at 8.1%. I'll now hand back over to Todd and Blair for concluding remarks.

Thank you, Kristen. Napier Port had a very solid year, marked by strong regional recovery and key customer trade volumes returning. We've reached several new financial milestones in FY '24, and this is due to the resilience of our team, a diverse cargo basin revenue streams as well as capability and infrastructure and a whole port approach to managing our operations. While the closure of WPI was a setback, Napier Port's ability to adapt and our core fundamental regional strengths continue to provide volume and support our financial resilience. Thanks to our strong financial position, we are well equipped to continue growing dividends and investing and expanding our cargo base, developing operations and enhancing our capabilities for the future. Looking at our outlook. Looking ahead, we're optimistic about Napier Port's ongoing growth. The fundamentals of core food and fiber sectors remained strong, continuing log export volumes, new seasons, crops planting, a new investment in the horticulture sector plus steady cruise bookings are all positive signs for our future. While global market is still somewhat subdued, we are seeing inflation easing and more favorable in macroeconomic conditions. This should provide further stability for cargo owners. Our strategic initiatives are driving growth, half capacity, operational flexibility, services on port and viewpoint supply chain positions Napier Port well to receive and process more cargo from across the North Island. In the short to medium term, earnings growth we linked to growing volumes together with efficiencies and yield management from the investments we have made in infrastructure and customer services on port. We expect the baseline cargo recovery to continue throughout FY '25, maintaining momentum and earnings growth. Over the medium to long term, we're focused on achieving target returns in line with our cost of capital. We will share further updates on our trading performance at the ASM in December. And I will now hand over to Blair.

Thank you, Todd. And finally, we are pleased to have announced today a final 2024 dividend of $12 million or $0.06 per share. This dividend will be fully imputed and paid on 18 December to those recorded on the register as at 6 December. This brings the total dividend in respect of the 2024 financial year to $18 million or $0.09 per share, which has increased from the $0.0525 per share total for the 2023 year. On behalf of the Board, I want to thank our shareholders, customers and Napier Port team for their ongoing commitment and support. We are proud of what we have all achieved this year given the circumstances, and I'll now hand back to Kristen, who will conclude the presentation.

Thanks, Blair. That concludes our prepared presentation. We'd like to provide the opportunity for those on the call to ask questions related to our presentation. And therefore, I hand back over to the moderator to do so.

[Operator Instructions] Your first question comes from Andy Bowley with Forsyth Barr.

Congrats on a strong recovery in the financial year. Now a few questions from me. Maybe the first around broader pricing and ARPU, further strong gains through the past 12 months, albeit not all linked tariff or price specific rate increases. But can you give us a sense -- and I recognize you've had your new tariffs on your website for the last few months. Can you give us a sense of what your expectations are with regards to broader rate increases across both bulk and containers for the next financial year, please?

Andy, Todd here. It's been a reasonable environment as we've talked about in the last year or 2 to get some good pricing through in the port sector, it's kind of pleasing to see some of those initiatives also have been taken up by other bigger ports north of us as well. That takes the pressure off us a little bit in terms of not taking the lead on some of the sort of pricing increases. It's being done [indiscernible], but we would see that the environment going forward is going to be much more challenging in terms of pricing level increases with customers. So our expectation is whilst we'll still look at price increases as a lever to pull in the business to get the sort of returns we want, we would say that our focus will be more on the management of our costs and looking to grow volumes as well.

So with regard to this year, you must have a pretty good idea of what you're going to be able to achieve, though in light of the discussions you've had with shipping lines, which should be off tariff, but also what you've got on tariffs. Can you just give us a sense of what your expectations are? I guess, by the comment much more challenging is that, that's probably less than the ARPU growth that you've seen this year at 8% and 8%, respectively, on containers and bulk?

Yes. I won't try to put a number on it, Andy. But yes, I think your conclusion about being less than probably what we've seen in the last year, that's a fair conclusion to make.

But is it fair to say that we should also see ARPU be delivered in excess of CPI in light of what you can see on your tariffs and levers, et cetera?

Again, I probably wouldn't want to make a comment on that.

Okay. Okay. Fair enough. Lots of other companies do, but that's your decision. Maybe shifting on to cost control. You've talked around taking a number of measures in the recent times. We can see the abnormal that has gone into a reported NPAT of $600,000. Can you just talk us a little bit around exactly what you've done and what kind of annualized savings you're anticipating from those cost measures taken in recent times?

Well, we've been looking at measures post-WPI in particular, where we've taken some steps to resize the operation, and we would expect that to be helped to offset some of the impact from our operating earnings loss as a result of WPI. Kristen, do you got anything to add in terms of sizing on that?

Yes. I don't think we'll comment, I guess, on the savings side of it. But yes, we have done a reorganization exercise. And unfortunately, that has meant some people have exited the business. As part of that process, we've looked at, I guess, the whole scope of our operations. So there are some that are obviously impacted like around our Port Pac operation, but we've taken a look at the whole, I guess, cost to serve, if you like. around that, and we've managed to, I guess, move people around to other vacancies. And essentially there's a number of people that have had to leave the business and that's, I guess, what you're picking up in the sort of the restructuring costs of just over $600,000. But that, as Todd said, that kind of goes part way, so I guess reflecting the kind of post-WPI world, really. So -- and as we said in our comments, we expect to go a long way to bridging the loss and, I guess, net earnings from WPI going forward.

So maybe thinking about it in the context of fourth quarter costs were circa $22 million from an OpEx point of view, well down on third quarter. What are we looking for in terms of the run rate into FY '25? Or what kind of level of OpEx can we expect in FY '25 is we spend [ 89 ] in FY '24, but fourth quarter is clearly lower on a quarterly basis than the annual total.

Well, I mean there's obviously a lot of things going into costs. So taking, I guess, a modest number of FTEs out. And I think we are, I guess, trying to manage across all, I guess, assets of our cost base. There's some variability based on throughput kind of sort of suggesting -- expecting sort of the base levels to gross. There be some upside there. There's some old ongoing challenges that we've been facing for a number of years like insurance, it's hard to say, Andy, without sort of kind of going to a lot of detail. It's still -- so I guess, still pockets of inflation, so we still see in the sector things like stevedoring charges, above inflation sort of levels, but a lot of other sort of stabilized, I guess, and kind of more flat CPI sort of levels.

So maybe I recognize there's a lot of detail that you could go into, but I don't know overall level, we should expect some increase.

Yes, yes. I mean, yes, I mean I think, it's fair.

Yes. Okay. Next question, just trying to get a sense of the movements in the log export profile through the year. There's clearly been some influences around wind throw the Pan Pac logs. And then more lastly, what's been happening from WPI, can you give us a sense of the quantum of each of those? And then what that means from a go-forward point of view, i.e., some kind of outlook for FY '25, please?

Yes. Are you there? So log exports like earlier in the year, we've talked about we had the wind throw effect, which we would say it was around about 200,000 to 300,000 tonnes of extra wood we wouldn't have otherwise seen. That's inclusive of some of the cargo that would have been also redirected from Pan Pac. That volume is obviously now ceased and Pan Pac's back up to more or less full operations. WPI, we're seeing some additional volume coming through from the Central North Island now, and we would sort of think that that's more or less commensurate with what we would have seen with the windthrow effect as well on an annualized basis. So roughly that 200,000-odd additional tonnes of logs coming through to the port, give or take.

Your next question comes from Wade Gardiner with Craigs Investment Partners.

Just a couple of questions. While we're on the logs. Those WPI volumes, are they essentially locked in regard to going through Napier? Or is there a chance that they could go to either [ Port Darren ] or Wellington in the future?

We always expect to be some competitive tension there, Wade. But more or less, those tonnage I've just spoken about, we would expect that to come through to us for the foreseeable future until there's a change perhaps in any kind of asset sales for WPI of the mill starts up again. But for now, we would see that as a steady state number for us.

Right. So outside of the mill starting up, I guess I'm just trying to understand, is there a natural sort of geographic advantage you could have with where they're coming from because it's sort of lower Central North Island, we're talking about it?

Yes. I mean some of the logs at WPI would have been taking in, they come for forest sort of around the central lower North Ireland. A small amount of it would go out to New Plymouth, the small amount would go out to CentrePort and probably the majority would come to us. It's all driven by the shipping profile and the cost that they can get on road primarily at the moment out of that central Lower North Island forest through to us. The forest that they take from can lend themselves to any of the 3 ports primarily, but a majority of it would lend itself towards Napier.

Okay. With the port pac facility, is there an opportunity there to use that space that's being freed up for other volumes to other customers?

Yes, absolutely, and that's what we're doing at the moment. I just sort of would also mention, I guess one of the things, influencing factors around those logs coming through the nature of our ability to provide the space that the exporter needs, Ernslaw needs to be able to hold those logs on port, and we're able to facilitate that with that extra pay area that we developed about a year or so ago that was used for woodchip pile, it's now being used for Ernslaw logs as well. So that's supporting region-wise logs coming through to us. The sheet that we have on site for WPI and the storage and packing of the pulp and timber, that was coming through, yes, we are, at the moment, using that facility for other customers and actively working towards a longer-term customer for that site as well.

Okay. The elevated CapEx that you've got for next year, how long should we assume that remains at sort of these higher levels.

I guess it's a bit -- I think we talked about before, it could be a bit lumpy. So we're expecting elevated capital to next year. I guess it's a bit early, probably to talk about year after, but there's, I guess, a program at the moment of some of the more major maintenance type across our site assets happening, and we've mentioned a few of them in the presentation. So there's a bit of that going on, which is kind of adding to things as part of that is a bit of a, I guess, is a minor backlog, if you want to call it, over several years of watching our finances and things like that. So it's probably likely to flow through beyond next year as well. But I guess, a bit early to give any kind of specific numbers.

[Operator Instructions] Next question comes from Steven Lin with Way To Go Limited.

Yes, a question for Christian -- Paul Christian. Great result guys, but I just wanted to clarify the depreciation on the commercial buildings, because I'm freelance accountant in 31st of March 2024 was when it cut off, you couldn't claim depreciation on commercial buildings. So that you should be able to claim in 6 months, which have you done that or not out of the 12 months?

Yes. I think we have up until, I guess, the statutory to change dates, the charge that we have booked is largely deferred tax. So it's the future impact of that change. So it's basically a noncash impact on our reported results. But yes, you're right. We have -- in terms of our actual tax return for that financial year, '24 financial year, we will claim half a year. But the major impact is the future deductions that we won't get because of that change.

That's all good. Look, I was going to do some thorough research, but I thought to just ask you first and then at the annual meeting. Question for Todd.

Sure.

Any further development on these [ seagliders ]?

Seagliders. No additional developments on that front that I'm aware of at this stage, no -- sorry projects. No further conversation has been held with them.

Right. Okay. Now that's all good. I thought that because they're located, the people that are setting up are located at the airport, basically across the road from the port would make logistical things to use your assets.

Yes. We had some early conversations a couple of years ago, but I've only been following probably like a lot of people what's been going on in the media, but no further conversations with them at this point in time.

Okay. So you haven't got a specific relationship with them while you don't -- because they've ordered -- I think they put an order in for $700 million worth of seagliders. So they're not pie in the sky material. I know they've got to get the [indiscernible] time to start up. But I think it's a thing that could affect the airline industry big time because the cost that they are going to deliver the transportation around New Zealand is going to be phenomenal compared to what the airlines charge.

Yes. I guess probably it's a pretty exciting sort of looking at project and my impression would be there's still a lot of work for to do to see those actually flying around New Zealand's coast at some point in time.

It's going to be maybe 5 years to maybe eventuate, but I said they put orders in a couple of years ago, the $700-odd million. That's a huge amount of money. So -- and they only get backyard just across the road basically at the airport, don't have the guys who sit it up or who're doing it.

That's right.

Yes, no problem. That's also going to ask. And they've got a good work on the dividend. Girlfriend is happy. She gets double what she got last from winter time, so she's been struggling. So -- and I'm happy because I sank a lot of money into your company. So even I had to take a hit after the cyclone, I sold out, but I gained a further 8,000 shares out of just sitting and waiting and it was a huge move, because I had part of the money in the warehouse, and I would have come a gut at the warehouses of useful speakers, they sold all their assets and rent their b***** buildings. They have done there. But yes, well done, and I get a huge dividend as well. So we're happy we will be probably at the Annual General Meeting with big smiles.

Excellent. That's good. We look forward to seeing you there. Really pleased. Good to hear.

And hey, I've got a couple of ideas for the tourism industry that I'll talk to you about off the phone in any way, right? I hooked up with some people that I talked to you at the meeting or after the meeting.

There are no further questions at this time. I'll now hand back to Kristen for closing remarks.

Thank you, everyone, for joining us for the Napier Port Holdings 2024 Financial Year Results Call and for your questions. That ends our presentation. Have a good day, and goodbye.

That does conclude our conference for today. Thank you for participating. You may now disconnect.