The Port of Tauranga has increased its first-half profit by 16% to $70.2 million – above market expectations – and has raised its earnings guidance for the full year.

The consensus of market expectations was for a net profit of $68.8m.

New Zealand’s biggest port said the result was driven by resilient trade volumes, productivity improvements, and increased revenue and margin.

Total trade volumes increased 1.2% to 12.6 million tonnes in the half.

Container volumes increased 2.6% to 607,114 TEUs (twenty-foot equivalent units).

Imports increased by 5.3% to 4.7 million tonnes, while exports were slightly lower, decreasing 1.0% to 7.9 million tonnes, reflecting lower log and dairy volumes.

Operating revenue increased 8.5% to $244.1m.

Earnings from subsidiary and joint venture companies were up 27.3%, reflecting improved performance across most businesses.

Looking ahead, the company said the later start to the dairy export season, combined with a strong kiwifruit export season from March, was expected to support continued strong volumes in the second half.

“This may place pressure on container terminal capacity, particularly for refrigerated cargo,” it said.

The port expects to see improved results because of a reduction in costs from the new MetroPort model, pricing changes and improved operational efficiency.

Consequently, it increased its forecast underlying net profit to $142m to $152m for the year, up from a previous forecast of $137m to $147m.

Chairwoman Julia Hoare said the strong trade and financial results were positive amid depressed economic conditions.

“Whilst the domestic economy remains sluggish, we are seeing what we hope are the early signs of a recovery, particularly in bulk imports and most export categories.”

Chief executive Leonard Sampson said the port had proven its resilience thanks to diverse income streams and a constant focus on costs.

“We are preparing for future growth and even greater resilience through our investments in infrastructure for capacity, such as our Stella Passage resource consent application.”

The application in the Environment Court is on hold pending an application under the new Fast-track Approvals Act.

In December, the port received a second interim decision from the court confirming that consent would be granted for part of the Stella Passage project, subject to revised conditions.

However, three parties have appealed against that interim decision to the High Court.

“Given the urgency of the project, to protect the interests of New Zealand importers and exporters, we are preparing an application under the new legislation,” Sampson said.

The port declared an interim dividend of 8c, up from 7c in the previous comparable period.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.