The Board Perspective

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At NQBP we are focused on creating value for our customers, shareholders, and communities. We create value, as professional port managers, by building the capacity and capability of our ports, coordinating the development of an efficient supply chain to the ports, and ensuring that they play a strong leadership role in economic and community development.

We create direct value by working closely with our stakeholders to solve problems, seize opportunities, attract investment, plan for growth and develop the critical resilience needed to adapt to changing circumstances.

Our achievements in 2015-16 have built upon this work and it has been another year of progress toward fulfilling our mission, upholding our values, and achieving our vision.

Facilitating Trade

Amid fluctuations in commodity demand and prices throughout the year, the total trademoved through NQBP ports in 2015-16 was 178 million tonnes, just a quarter of a per cent below last year. It is testament to the hard work of our team, the resilience of our customers and the efficiency of our ports that this level of trade has been maintained.

At the Port of Hay Point, BHP Billition Mitsubishi Alliance completed its HPX-3 expansion project in December 2015 and this has increased export capacity at its Hay Point Coal Terminal from 44 million tonnes per annum (mtpa) to 55 mtpa, and is an example of building capacity for future demand during the current downturn. There were also significant changes in the wider coal industry – in ownership, cost control and supply chain efficiency – which slightly impacted coal trade. Overall, total coal exports for 2015-16 totalled 142.8 million tonnes – only 0.6 per cent below last year.

At Port of Mackay, sugar exports were up from last year by 6 per cent and fuel up 0.9 per cent.

Bauxite exports from Port of Weipa grew by 1.7 per cent this year. Rio Tinto announced its Amrun expansion project in November 2015, and work is well under way on the early construction phase of that important development, supported by NQBP.

Trade growth will continue to be dependent upon improvements in world commodity prices and demand, however, NQBP remains focused on bringing new trades to Queensland and assisting existing customers in securing their growth opportunities.

Financial Performance

Our total revenue for 2015-16 was down 7 per cent to $95.7 million, reflecting the mixed results in coal exports and petroleum.

Net profit was $18.4 million (compared to a loss of $7.4 million in 2014-15, which was impacted by asset revaluations undertaken last year).

Work was ongoing in 2015-16 to control costs and streamline processes. We have operated during the year with 15 per cent less staff than the prior year, and therefore our achievements have been a result of changing the way we work. An emphasis on innovation and new ways of working has also contributed to savings in purchasing costs and in better use of resources, and we will continue that work in 2016-17.

Other Key Achievements

This Annual Report encompasses our many achievements and progress in 2015-16. However, particular highlights for the Board have been:

Next Steps

We know it will require new approaches and collaboration to achieve trade growth in the current tight economic conditions. Our work will include a review of our product and services in each port; building better ways to connect our information with the key stakeholders that work in and around ports, including the agriculture sector, and more emphasis on market and customer intelligence. We will also continue to develop our operational capability and to embrace technology to provide more efficient service.

Our work on strategic asset management and our development plans for each of our ports will provide a firm base to invest and attract private sector investment – delivering the infrastructure needed to support longer term trade development.

We will build on our sustainability plans in 2016-17, increasing awareness of the importance of including more environmental research within our ports and further work on our commitment to Reef 2050.

We will continue our work on the longer term planning and development of all our ports. More immediately, we are supporting the State’s master planning for the priority ports of Abbot Point, Mackay, and Hay Point. We are committed to building more trade at the Port of Mackay, and developing future trade potential at the Port of Weipa.

Building further capability in our people, and supporting them with the right processes, systems, technology and opportunities, will be a priority for 2016-17. A new website – digitally-enabled, and customer-focused – will be a key deliverable, as well as our ongoing efforts to increase our use of social media and to adopt innovative technology where this adds value to our business.

Commitment

NQBP is continuing to develop its capability to maximise the opportunities which lie ahead. We are leaner, focused and committed to creating value across our business. Our customers have also continued to show resilience in pursuing growth opportunities, and NQBP is committed to supporting their efforts from our unique position in the supply chain.

Our success in 2015-16 is underpinned by our people – the management and staff of NQBP – who have strived to implement our strategy, and who provide the face and energy of NQBP to our customers and other stakeholders. The Board appreciates the support and commitment of our people.

The Board itself has experienced change in 2015-16, moving to a six-member board, and a new Chair. The majority of the Board has more than 10 years’ experience with NQBP, and a strong regional understanding and enthusiasm for the work of the corporation and its tremendous opportunities. I thank my fellow Directors for their support, contribution and commitment to good governance. I also acknowledge the past Chair, Peter Milton, and past Directors for the contribution they made to our current success.

The challenge ahead is for NQBP to continue to adapt, to market changes to embrace technology and to add value. Our work on trade facilitation, particularly in the Port of Mackay, will be a strong focus in 2016-17. I look forward to another year of achievement, and ensuring that NQBP makes the full contribution to the economic development of Queensland that our community expects.

Brad Fish
Chair, North Queensland Bulk Ports Corporation

Business Performance

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Business Performance2015-16
Actual
2014-15
Actual
Trade Throughput ( Mtpa )Mtpa2015-16 Actual: 178.12014-15 Actual: 178.5
Lost Time Injury Frequency Rate (LITFR) ( Rate )Rate2015-16 Actual: 0.02014-15 Actual: 5.1
Total Income ( $m )$m2015-16 Actual: 95.72014-15 Actual: 102.9
Earnings Before Interest, Taxes, Depreciation and Amortisation ( $m )$m2015-16 Actual: 41.12014-15 Actual: -0.5
Net Profit/(Loss) After Tax ( $m )$m2015-16 Actual: 18.42014-15 Actual: -7.4
Underlying Net Profit After Tax ( $m )$m2015-16 Actual: 19.92014-15 Actual: 20.4
Total Comprehensive Income ( $m )$m2015-16 Actual: 22.22014-15 Actual: 173
Total Assets ( $m )$m2015-16 Actual: 634.72014-15 Actual: 626
Net Assets ( $m )$m2015-16 Actual: 408.42014-15 Actual: 421.9
Current Ratio (excluding provision for dividend) ( )2015-16 Actual: 2.272014-15 Actual: 2.21
Debt/Debt Plus Equity Ratio ( )2015-16 Actual: 0.142014-15 Actual: 0.14
Return on Assets ( % )%2015-16 Actual: 4.7%2014-15 Actual: -1.1%
Return on Equity ( % )%2015-16 Actual: 5.1%2014-15 Actual: 5.1%
CAPEX Spend ( $m )$m2015-16 Actual: 7.42014-15 Actual: 14.8
Operating Cash Flows ( $m )$m2015-16 Actual: 40.62014-15 Actual: 18.5
Dividends Provided ( $m )$m2015-16 Actual: 15.72014-15 Actual: 0
  • Port of Weipa
    Bauxite export grew
    1.7 per cent

  • Port of Mackay
    Sugar exports up to 6 per cent
    fuel up 0.9 per cent

Total Trade Summary

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