New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>Napier Port Secures Long Term Agreement with WPI</h2>
Napier Port (NPH) has renewed its contract with existing customer Winstone Pulp International (WPI) for a further 10 years. This is an important contract renewal for NPH as it removes significant volume (we estimate it generates ~20k TEU of full exports annually) and shipping service (without this volume NPH was at risk of losing key services) risk over the long term.
No financial terms have been announced though the WPI contact is one of the most hotly contested containerised cargo contracts for ports in New Zealand given WPI’s location in the central&nbsp;North Island (Ohakune) with rail connections to Napier, Wellington, Tauranga and Auckland. Therefore at best we expect NPH has retained a similar margin to what it previously achieved. The contract provides no guaranteed volume commitment to NPH but ensures all WPI exports are channelled through NPH. &nbsp;
While we previously acknowledged the risk of NPH losing WPI, we incorporated its volumes in our forward earnings expectations.&nbsp;We have a NEUTRAL rating on NPH, which is&nbsp;due to report its FY20 results on 18 November.
Andy Bowley&nbsp; Head of Research
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M: +64 21 338 941 |P: +64 4 495 8246 | TF: 0800 367 227&nbsp; Level 22, NTT Tower, 157 Lambton Quay, Wellington

Napier Port Secures Long Term Agreement with WPI
Napier Port (NPH) has renewed its contract with existing customer Winstone Pulp International (WPI) for a further 10 years. This is an important contract renewal for NPH as it removes significant volume (we estimate it generates ~20k TEU of full exports annually) and shipping service (without this volume NPH was at risk of losing key services) risk over the long term.
No financial terms have been announced though the WPI contact is one of the most hotly contested containerised cargo contracts for ports in New Zealand given WPI’s location in the central&nbsp;North Island (Ohakune) with rail connections to Napier, Wellington, Tauranga and Auckland. Therefore at best we expect NPH has retained a similar margin to what it previously achieved. The contract provides no guaranteed volume commitment to NPH but ensures all WPI exports are channelled through NPH. &nbsp;
While we previously acknowledged the risk of NPH losing WPI, we incorporated its volumes in our forward earnings expectations.&nbsp;We have a NEUTRAL rating on NPH, which is&nbsp;due to report its FY20 results on 18 November.
Andy Bowley&nbsp; Head of Research

M: +64 21 338 941 |P: +64 4 495 8246 | TF: 0800 367 227&nbsp; Level 22, NTT Tower, 157 Lambton Quay, Wellington

Napier Port: Secures Long Term Agreement with WPI