Napier Port Holdings Limited ($NPH)

Thank you for standing by, and welcome to the Napier Port Holdings Limited Half Year FY '26 Results Announcement. [Operator Instructions] I would now like to hand the conference over to Mr. Kristen Lie, CFO. Please go ahead.

Good morning, everybody, and welcome to the Napier Port Holdings 2026 Half Year Results Call. My name is Kristen Lie. I'm CFO, and I'm joined on the call this morning with Todd Dawson, Chief Executive; and Blair O’Keeffe, the Chair of the Board of Directors. During this morning's presentation, we will report on the highlights of our first half 2026 financial year. We will reference the suite of information released earlier today on the NZX reporting platform and also available in the Investor Center section of our website. At the end of our presentation, we'll be happy to respond to any questions you may have. And I'll now hand over to Blair to get things underway.

Thank you, Kristen, [indiscernible] and welcome to our 2026 half year results presentation. I'm pleased to report a strong interim result for the 6 months to 31st of March 2026, with underlying earnings growth reflecting solid operational performance across the port and the continued strength of our diversified trades. During the half year, we have continued to progress our strategic investment program with capital deployed across key projects that will enhance our capacity, capability and operating efficiency over time. Our strategic investments are supported by our strong balance sheet position. While we recognize ongoing uncertainty in global markets and cost pressures for exporters and importers, we are confident in the resilience of our region and the underlying demand drivers that support Napier Port's performance into the second half of the year. I'd like to acknowledge the efforts of our people led by Todd in delivering this result. And Todd will now take you through the detail of our performance for the half year.

Thank you, Blair, and good morning, everyone. Trade volumes for the first half of the year have been seen a consolidation of the higher level of container services activity we saw across 2025. Container volumes increased by 3.5% to 116,000 TEU. This has been supported by the continued strength of our refrigerated export cargo base, particularly across squash, onions and early season apples, along with earlier positioning of empty containers to support the anticipated increases in export demand this year. Earlier positioning of empty containers has improved the availability for local exporters and supported an efficient operational flow heading into Hawke's Bay's peak horticultural season. Bulk cargo volumes were slightly lower overall, down 1.5% in the period. This reflects softer log exports, which were partially offset by increased fertilizer and other bulk cargo movements. Cruise vessel calls were lower than the previous year comparable period with 54 visits compared to 77. This reflects a broader reduction in cruise activity across New Zealand and Australia. Vessels calling nature were larger on average this year, supporting higher passenger numbers per vessel and improved revenue per vessel call. Overall, these results demonstrate the benefit of our diversified trade base with strength in containerized cargo offsetting variability across other areas. Moving to the next slide. Our team has delivered a solid performance in the first half of this year, continuing to support our customers through a busy export season. Our operational performance has been supported by improved equipment availability, particularly across our crane and container handling fleets and our ongoing focus on creating flexibility and taking a whole of thought approach to the deployment of resources required to meet customer demand while improving productivity. Despite the global uncertainty arising out of the Middle East conflict and increased cost of fuel, we are not seeing any notable impacts or disruption to our trade or shipping flows. We are aware that some New Zealand exporters have had product caught up in these events requiring diversion of cargo internationally. Due to the effect of increased fuel prices, we moved swiftly in March to adjust our fuel cost recovery mechanism to a weekly review and reset cadence, which has protected the cash flow and the majority of impacts from sudden changes and increases in diesel fuel pricing. In the first half of the year, we have seen positive momentum in both revenue and earnings, driven by increased container services activity and our continued progress in growing yields across our main service areas. Total revenue increased 8.8% to $84.9 million, led by container services, which were -- where revenue was up 16.7%. This reflects a combination of volume growth and ongoing improvements in average revenue per unit supported by cargo mix changes. At the earnings level, the result from operating activities lifted 12.5% to $37.3 million, demonstrating the benefit of operating leverage as activity levels increase. Underlying net profit also strengthened up 21.5% for the half, highlighting the quality of earnings delivered in the period. Operating cash flow was slightly lower at $23.9 million. Overall, the result reflects a continued focus on operational performance, asset reliability and delivering for our customers. Moving to the slide on our strategic investment program. Our current strategic investment programs remain on track for delivery with benefits already being seen through improvements in productivity. This program includes a series of investments aligned to our refreshed business strategy with approximately $120 million being deployed across 2025 to 2027 financial periods. We're now approaching the midpoint of that program. Our focus is on strengthening our core operations, enhancing the capacity, resilience and efficiency while we also build the capability required to capture future and current market opportunities. Our Crane Major Maintenance Programme has progressed to plan with major component replacements and servicing of our frontline cranes largely completed during the half. This has delivered improved reliability, availability and productivity of vessel operations. Our Viewpoint Supply Chain services continued its growth in the first half, extending our role beyond the Wharf with further growth of our integrated logistics offering in warehousing, transport and inland services across container and bulk trades. This is strengthening customer relationships, supporting cargo retention and growth and enabling greater efficiencies for our customers across the supply chain. Our Dredge Vessel being delivered in partnership with Port Otago continues to progress well with construction advancing during the half and with a sea launch scheduled for June 2026. This investment provides us with greater future control over channel maintenance and supports our ability to progressively deepen shipping channels to consented depths, enabling access for larger vessels as shipping requirements evolve. Moving to the next slide. Our exciting Napier Port Transformation project, or NPT, is a key investment in the future operating model of our container terminal and represents a step change in how we will operate in the future. The NPT program introduces a new horizontal transport model in the container terminal, improving safety, productivity and long-term efficiency. During the half, we have completed the core infrastructure works required to support NPT, including civil and electrical works and the rollout of our private 5G network. We're now progressing operational trials with newly arrived equipment ahead of the arrival of the bulk of the fleet of autonomous truck and trailer units during the fourth quarter of this financial year. Importantly, NPT establishes a more scalable future operating platform, allowing us to better utilize terminal space and equipment as volumes grow. A stage transition to live operations is planned through to early calendar year 2027. Alongside this, our ShoreTension Mooring System Upgrade at 6 Wharf is also progressing well with installation and commissioning underway during the half. This will improve berth availability and vessel operability, supporting safer and more reliable vessel operations and more consistent utilization of our assets. Together, these investments are enhancing the capacity, capability and efficiency of our operation and positions us well for future growth. I'll now hand over to Kristen to talk through the detail of the financial and operating results.

Thank you, Todd. Firstly, total revenue, the 8.8% revenue growth to $84.9 million breaks down into a container services revenue increase of $7.2 million or 16.7%, a bulk cargo revenue increase of $1.5 million or 5.9% and a cruise revenue decrease of $1.8 million or 21.8%. The revenue growth across container services and bulk cargo was particularly pleasing given the lower cruise bookings, again, highlighting the positive diversification effect in our portfolio. On to the containers, the increased container services revenue was a result of the 3.5% increase in TEU volume, compounded by an increase of 12.8% in average revenue per TEU. Total TEU volume was up 4,000 in the half year period with increases in for empty containers outweighing lower transship and DLR activity. The average revenue per TEU increased 12.8% to $430 from $381 in the prior period -- prior comparative period. Factors include tariff increases and customer and cargo mix changes as well as higher port access charges and infrastructure levies and a higher depot revenue contribution. Partially offsetting these unit gains were lower reefers on power and lower storage charges, partly attributed to higher vessel calls and therefore, containers on port for comparatively shorter time periods. Slide 11. Bulk cargo revenue increased by 5.9% in the period. This was on 7.5% higher average revenue per tonne, partially offset by 1.5% lower volume. The volume decrease was -- by the strong uplift in import fertilizer and was mainly attributable to log exports, which decreased by 70,000 tonnes compared to the first half of last year. Bulk average revenue per tonne increased 7.5% to $16.02. This resulted from cluster and cargo mix changes, higher marine contribution from a larger number of smaller on average vessel loads and tariff and levy increases. Cruise Vessel calls continue to be a significant contributor to Napier Port, comprising $6.4 million or 7.5% of half year revenue. Cruise revenue in the period decreased by 21.8% on 23 fewer vessel visits, of which 5 were bookings lost due to weather cancellations, partially offset by 11.6% higher average revenue per vessel. Positive ARPU growth was generated by larger vessels and higher passengers per vessel on average. Our cruise season ended in April with a total of 55 vessel visits. Slide 13. We reported another good result from operating activities for the first half of the year, with this increasing by $4.2 million or 12.5% to $37.3 million as the revenue increase of $6.8 million exceeded the OpEx increase of $2.7 million. Total operating expenses increased 6% compared to the first half of last year and decreased $1 million or 2% compared to the second half of last year. The main drivers of the operating expense increase half-on-half were container-related contract service costs, principally stevedoring and road and rail transportation and wages and salaries on a higher headcount to support service levels and a higher level of project and development work in the business. Positive operating leverage was again demonstrated with the operating margin percentage increasing to 43.9% from 42.5% in the first half of last year. Slide 14. Our higher operating result has driven the underlying net profit to an increase of $3.2 million or 21.5% to $17.9 million in the half. Our reported unadjusted net profit of $18 million for the period decreased by $2.2 million as the prior year benefited from $7.5 million of insurance income from the final settlement of our Cyclone Gabrielle insurance claim. Similarly, the lower tax charge this half year was largely due to tax associated with that insurance income last year. Finance costs decreased on higher capitalizations to property, plant and equipment, including related to our NPT dredge and mooring system projects. CapEx -- capital expenditure during the half year was $29.6 million or $28.1 million in cash flow spend terms. Approximately 2/3 of the half year spend was directed to strategic development projects and 1/3 towards asset replacements or maintenance. Replacement spend included 5 new restackers, major maintenance on cranes and tugs and various site asset works. We continue to expect approximately $120 million of capital spend across the '25 to '27 financial years, subject to approvals and timing. Cash flow. Reported cash flow from operating activities decreased to $23.8 million as the prior half year period included the receipt of $11 million of insurance proceeds. Underlying operating cash flow was the same as reported operating cash flow and decreased by $1.9 million due to the higher provisional tax payments made during this half year. The final '25 financial year dividend payment in December, December '25 of $16 million was increased from $12 million in the prior comparative period. An update on our capital management position. The continuing capital investment program led to an increase of gross drawn debt to $130.5 million at the end of the half year period, leaving $49.5 million of undrawn facilities. Our debt-to-EBITDA ratio at the end of the period was 1.81x, which is below our capital management target range of 2x to 3x. We expect this to rise to within our target range as we continue to execute on our capital investment program. We note we are considering our options for crane replacements, which will be required in the next few years and for which we are targeting an investment decision within the next 12 months. As part of our due diligence, we are exploring a variety of options, including a change in the type of container crane used at Napier Port, which if pursued, would require a step-up in capital investment over and above normal replacement CapEx levels. No decisions have been made, but our conservative approach to our gearing means we retain all investment options on the table and able to make the decision best suited for Napier Port's future. Any type of crane will not be delivered within our current CapEx guidance period covering '25 to '27 financial years, and the majority of future crane CapEx is expected to fall beyond this period. Lastly, a brief update on our sustainability and emissions reporting. As mentioned during our 2025 full year results release, we've expanded our Scope 3 emissions reporting to include the emissions associated with purchased equipment, purchased goods and services and construction projects. As a result, total gross emissions increased by 155% compared to our half year '25 or increased by 3.1% on a like-for-like basis when stripping out those newly reported categories. Scope 1 emissions increased 0.7% on higher fuel usage by generators used for powering reefer containers principally. Scope 2 emissions, essentially electricity consumption related, decreased by 7.8% on lower electricity usage, partly due to the higher generator use. Emissions intensity on a per cargo tonne basis and on a like-for-like basis, the increase was an increase of 3.1% as containerized cargo increased as a proportion of total cargo and reefer cargo increased as a proportion of containerized cargo. I now hand back over to Todd and Blair for concluding remarks.

Thanks, Kristen. Napier Port enters the second half of the financial year with confidence, supported by a strong first half performance and continued momentum across the business. This result reflects the benefit we enjoy of a diversified cargo base and continued development of our operating leverage through the yield management, productivity improvement and investments that have been supporting our earnings growth. We note the positive recent announcement by MSC that they are including Napier into their recently launched New Zealand Eagle service routing through direct to the U.S. East Coast markets. While shipping line services are constantly being reviewed and changed, we are seeing high levels of interest from container lines for additional services and exchange capacity at Napier Port, and we expect the MSC Eagle service to attract additional cargo to Napier Port from June onwards. And it's a welcome addition to our shipping service offer. Progress on our strategic investments is going well, and we are increasingly moving into the phase where these will begin to lift our capacity, capability and operating efficiencies across the port. Looking ahead, we remain mindful of the ongoing uncertainty in global markets and increasing cost pressures for exporters and importers being driven primarily by fuel and transport costs. We're also conscious of the secondary risk of elevated inflation levels taking root again in the local and global economy with its consequential macroeconomic effects. We continue to monitor log exports and market conditions being mindful of the current fuel situation and cost impacts to this trade. At the same time, demand for the region's food and fiber exports remain solid with pet food exports tracking well and supporting our position heading into the second half of the year. We currently have 52 forward crews bookings for the 2027 with the season scheduled to commence in October. Reflecting the first half performance and current trading conditions, we are reaffirming our guidance for the full year with an underlying result from operating activities expected to be in the range of $70 million to $74 million, assuming a continuation of current operating conditions. Overall, we remain well positioned to support future growth and deliver value for our customers and shareholders. I'll now hand back over to our Chair, Blair O’Keeffe for his closing remarks.

Thank you, Todd. The Board is pleased to declare a fully imputed interim dividend of $0.0525 per share, increased from the $0.04 per share interim dividend paid at the same time last year. This reflects the strength of the first half performance and the Board's confidence in the underlying earnings of the business and the strength of our financial position. The record date for the interim dividend is 11th June, with payment to be made on the 24th of June. I'll now hand you back to Kristen.

Thank you. 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'll hand back over to the moderator to do so.

[Operator Instructions] Your first question comes from Grant Lowe with Jarden.

Can you hear me okay?

Hi, Grant.

Thank you for the presentation. Very clear as usual. Just a couple of questions from me around log volumes. Obviously, you've stated sort of an insignificant impact to date. But just wondering what you're hearing. We've heard some anecdotal suggestion that some of the smaller wood lot owners are beginning to slow/postpone harvesting. Just interested in what you're seeing and hearing on that front and how you perceive that risk? And then just obviously, in relation to the reaffirmed guidance, if you could give us any sort of insight or color as to how you thought about that risk in relation to that guidance.

I'll start and maybe Kristen can build on the guidance piece for you, Grant. On the log side of the equation, what we're seeing flowing through the gate, which is the closest sort of indicator to what we're thinking about in the next month or 2 in terms of volumes going over the Wharf, we're not seeing any notable change really in terms of volumes coming in the gate of logs. What we are hearing is that some of the exporters that go through that port are shifting their operations to forests that are closer to the mill or closer to the port, obviously, to try and offset the impact of diesel on their operation, diesel price on their operations. We're relatively -- I wouldn't say comfortable, but we're relatively somewhat insulated from the effects of small wood lot owners in our volume mix, given that approximately sort of 70%, 80% of our forestry is largely supplied by what we would describe as state owners and they tend to ride through these fluctuations in the market fairly resiliently. And that's what we've seen over time as well as various different events have happened to impact the logging industry, whether that be COVID or windthrow events or macroeconomic changes in China's demand profile, et cetera. So that's sort of what we are seeing and hearing from exporters. And obviously, at the moment, we're not seeing a material decrease in volumes through the port, although there's a softer market overall.

And then just carrying it on into the guidance. Obviously, we're kind of estimating lots of different factors. It's fair to say that the log export outlook is probably a little bit softer than what we might have imagined when we set guidance originally, but in the sort of pluses and minuses of everything, we are quite comfortable with the guidance range. Obviously, it gives us a bit of room to maneuver, but we don't see it as a material shift in the outlook for the remainder of this financial year, what's happening at the moment and what we're seeing coming through the gate.

That's great. And then just around the cruise outlook. So another sort of down year for the industry as a whole by the sounds of it. I think there was a sort of a major trade show in Florida in the last month or so. And just wondering what your thoughts are on the return and momentum in cruise. Are we sort of still another 18 months away? Any thoughts on that?

Yes. Look, you're right. There was a cruise industry conference up in Miami in recent months. Our team attended that, got some feedback from the industry as to what to expect over the next year or 2. We believe that we're more or less at the bottom of the lull, I guess, in cruise coming through New Zealand, reflected in this year and probably next year's numbers. We're hopeful that we'd see a small uptick in, I guess [ '28 ], and then building back from there is our best estimate of what we see happening in that industry. Clearly, cruise as an industry in general across the globe is actually booming. There's plenty of demand there. And I think it's just at the moment, New Zealand and Australia, our cruise industries are pretty well linked. It is not necessarily the flavor of the month. And -- but we are confident that, that will come back over time.

That's great. And then just a final sort of detail one for me. Full year CapEx number is sort of around $50 million a reasonable sort of guess at this stage?

Yes, that's probably kind of a ballpark reasonable guess...

Your next question comes from Andy Bowley with Forsyth Barr.

So a couple of questions from me. Just really going back to the volume question before and expanding it in terms of the broader backdrop. Where do you see the biggest risk? And risk can mean downside and upside, but mindful of current trading conditions and elevated fuel prices. So in the context of logs, which you've talked to, it sounds like you're confident that that's not going to fall away. But how do you see the broader picture in relation to logs, agricultural imports and containers? Where is the biggest risk across those 3 broad product categories?

Look, I think we are mindful of the impact of this fuel pricing on the log industry longer term, Andy, if it sticks around for a lot longer. I think undoubtedly, it will keep the demand open whether that's a significant dip that we would see is still very uncertain. As I said to Grant, a lot of our forest is actually being supplied by those estate owners that tend to write these things and a lot more gain. So we're not seeing it as a significant risk, but [indiscernible] of it. On the import side of things, if cost remains high and/or fertilizer, we would expect to see a bit of a softening in demand on fertilizer probably next year as farmers sort of pull back their programs around fertilizer. But as you know as well, we've also had a bit of an uptick with the structural change in how fertilizer flows around the country as well. So that would mitigate to some degree that impact as well, but we are mindful. Containerized side of things, we're continuing to see good support and demand that's that food fiber base that we're lucky enough to have. It's been a great apple season so far. All the apples are picked. They're in cool stores. The risk around weather events and things is largely diminished now for us for the second half of the year. And other commodities that are flowing through Pan Pac, in particular, pulp and timber volumes are going strongly. They're selling everything they can manufacture. We don't see that changing and forecast from them is that they're very confident of that carrying on despite what we're seeing in fuel pricing. And that covers a big chunk -- and then we're seeing good growth coming out of our Viewpoint product as well and capturing of imports flowing through Napier Port. And equally, we're quite buoyed by the fact that MSC Eagle service is going to start coming to Napier from June onwards. As you know as well, the mean Americas cargo that was perhaps leaking out of the region or not coming to the region come back through here. So we'd see good support around the container volume certainly for the rest of this year as well.

What do you think the MSC Eagle service can add from a TEU point of view?

It's a little hard to say. I wouldn't want to speculate on a number. It's pretty early at this stage. And even early in, I guess, the establishment of that service in New Zealand and how well supported it's going to be.

Fair enough. But it kind of sounds in the context of the broader volume backdrop that you're more confident around the container outlook than you would be on the bulk side of things?

Yes, that's a broad characterization of where things would be, yes.

And fair to say that you'd be disappointed if you didn't see container volume growth through the second half. What the backdrop looks like at the moment?

Yes, I think it's pretty solid, yes.

Great. And then a question on the OpEx side of things. So a couple of areas of OpEx that led the growth through the first half, employee costs and contract services. Can you give us a little bit of color around particularly that contract services increase?

Yes. So contract services are, I guess, procured road and rail transportation related to, I guess, mostly our Viewpoint offer. And also included in there are stevedoring on ships, container stevedoring that we subcontract. So in both cases, volumes are up in those categories, but also subject to price fluctuations. So stevedoring is largely a labor-led, I guess, business. And over several periods now, we've seen kind of consistent pressure coming through on those rates. There's some freight increases coming through there. But that will cover the, I guess, the other contract services part of it.

Great. And then when we think about costs and how the seasonality works in the business, the second half typically plus or minus $3 million to the first half. Is that a reasonable assumption for this year? Or is there anything else that we should be thinking about in the context of what you're spending from an OpEx point of view through the next 6 months?

No, I guess off the top of my head, I'm not thinking of any kind of special or particular changes in our patterns. Yes, I'm not aware of anything at this stage.

Maybe in the context of -- yes, you've got the pass-through mechanism on diesel, but if diesel prices stay elevated, I'd imagine that's something that's passed through, but elevates your OpEx at least short term.

Yes, that's right. Yes, we'll get a gross-up effect if it's going up. And then if it's coming down, the opposite, that would be what we expect.

[Operator Instructions] Your next question comes from Wade Gardiner with Craigs Investment Partners.

Just a couple of questions from me. While we're on sort of the volume and outlook topic, this time last year, you were talking about 66 cruise visits. Well you said you lost 5 for weather, that gets us to 61, and we ended up with 55. What happened to the other 6-odd? And how should we, therefore, view the current booking numbers of 52? Is that likely to go up with more added? Or are they at risk?

Yes, I don't remember the 8. I think we went into this year talking about the 58 number. But I think the 52 is the bookings, and there is a risk, I guess, of further losses related to weather similarly. I mean, typically, in any year, it will be probably a couple or a few. In the odd year, you get 5 or 6 type thing just depending on the conditions. So yes, 52 is the current bookings. And I mean, there's some chances of a small amount being added, but more likely that there's going to be a risk of losses from weather.

Okay. Slightly technical question here. In Note 6, on interest cost, there's a $2 million fair value change on borrowings. What's that related to? And will we see anything similar in the second half? Or is that...

So [indiscernible] swaps.

I assume that's what it is, yes.

Yes. So that's just accounting. So that's offsetting -- well, so we've got fair value swaps. We've got swaps running through there. The fair value swaps just change against the value in the balance sheet. So there's net-net zero coming through in P&L. It just depends from period to period, it fluctuates quite a bit depending on where those market interest rates are moving. But it's generally a net-net zero effect through the P&L. Yes.

Okay. And finally, just in terms of autonomous vehicles and also the crane maintenance program that you're undertaking now, when will we sort of start seeing cost savings in what area?

The autonomous vehicles are due to be fully enliven by about March next year. And so from that point on, we would start to see operational efficiencies and then we would expect, I guess, those operational efficiencies to translate into some cost reductions over the preceding 2 or 3 years. And then on the crane side of things, we're already seeing, obviously, reliability and efficiency improvements on the crane maintenance program, which we'd hope to see that continue on until we have our crane replacements sorted out as well.

But does that flow through OpEx or just lower replacement CapEx?

In terms of the cranes?

The cranes. Yes.

It would be more OpEx related.

Your next question comes from [ Stephen Lynn with Waytogo Limited ].

I'll just take your speaker. Thanks for the increased dividend. Much appreciated. I've got a couple of questions. The first one, I think it was a year or 2 ago, you're going to set up a special insurance fund. Are you still going ahead with that? Or is that gone now?

Yes. No, we have set up an investment fund, which we're continuing to seed. So that's included in our balance sheet.

Sorry, I just hadn't had time to read the financials today. It's been super busy. I know that answered that. The second thing was new mooring system. Is that functioning okay with the waves and stuff? I think you've changed to Bluetooth. And I might answer the other joker's question why some of the cruise ships got canceled because I heard that they were -- the old ship was getting a little bit -- not reck but a little bit damaged from the waves and how the old system of those moorings were attaching it wouldn't move the waves. That's what I heard.

Yes. So we're moving towards a system called ShoreTension, more use. We've been using ShoreTension in the port for a number of years, but we're expanding its use across more of the Wharfs. The one that's probably of most interest is we're moving more towards ShoreTension on our 6 Wharf, our newest Wharf. And we've deployed an interim arrangement already and seeing really noticeable improvements in what it's doing for the availability of the Wharf. It means that we can hold vessels in a wider range of wave conditions. The long period wave being the most significant one that we need to manage to at Napier Port. And so we've been able to increase our limits already just in a matter of weeks since deploying ShoreTension on 6 Wharf. The more master system that you're thinking of, we don't use that on cruise ships anyway because the cruise ships tend to have too many windows and doors and things on the side of them. So the big suction cups on those more master systems don't work well on cruise ships. They're fine. There are no damage to vessels through using those more masters on all the container ships and logging ships and things that they touch.

All right. So you've got it all sorted of -- I heard that you've changed the Bluetooth on those mooring systems [indiscernible] was the other system that was not as good.

Both the [indiscernible] and the ShoreTension have remote operability. So they don't work through a WiFi network. So the mooring team can monitor and control them from basically from apps on phones or on PCs back in the office, yes.

Makes it easier. And the other thing about this cruise industry, thing I've been saying for a while, I think I sent an e-mail to the old communications officer. Yes, now that Pack & Save and Foodstuff and Four Square -- sorry, Pack & Save New World, the Foodstuffs stores have on your card, if you got a card, what is a pub card, right? You get discounts. The price might be $2 for a can of [indiscernible]. And if a tourist comes through haven't got a pub card, they might get charged $3. Looking at the thing going, hey, it sees $2. And I believe that's one of the reasons why tourists have sort of stared away. That is my belief. And also with the fuel prices like [ Gull ] has a Monday and a Thursday discount, right? But to just keep you up to date with what's happening, the Foodstuffs team have come out with a new combined card that's going to happen in June. [indiscernible] this morning at the supermarket. They just said that it's new card. A [indiscernible] who arrives on the day can go into the supermarket digitally, if they got their cell phone with them, they can digitally apply for the card then and there, get it approved and use the app so they can get that discount on the day. And I've noticed that there's a lot of tourist demand coming into New Zealand from people just coming through jumping their cars and the thing is on the increase. You've probably seen that in the news. So what we've got to work on now is to get these petrol stations instead of having a special on a Monday and a Thursday, it's got to be all week, right? Because these tourists think were a bunch of rip-offs. If you don't fill up your car on a certain day of the week or have a club card at the supermarket, you've got to pay full price. Anyway, that's just my opinion. So I'm sure the cruise ships will come back, right? Once the world guess no, we're not a bunch of ripoffs anymore, right?

Yes, absolutely. I hope you're right.

Yes. And remember that thing about Artica weekend, you need trying -- I know you're busy doing other stuff [indiscernible] all those 6 Wharfs and have 7 births of the cruise ships, the pace will rock, right? Because the guy of the gate told me it must be in a year or last year -- not last year's one. Last year's one, in 2025, you said passengers didn't want to go back at 2:00 in the afternoon on the cruise ships to run around chasing them to get home. I wanted to stay and enjoy the Artica weekend.

Have you got any other questions, Stephen? Or they just want to...

[indiscernible] I might be [indiscernible]. We'll see you at the AGM.

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

Thank you, everyone, for joining us for the Napier Port Holdings 2026 Half Year Results Call and for your questions. We look forward to providing you with a further update on progress with our 9-month interim results announcement expected to be announced towards the end of August. That ends our presentation. Have a good day.

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