UK: Port of Milford Haven Profit Plunge

The Port of Milford Haven has today released its annual results for 2012 showing a dip in profits. Changes in worldwide Liquefied Natural Gas (LNG) flows have meant the Port has handled significantly fewer LNG carrying ships – a main source of revenue for the Port, and as a consequence net profits before tax have dropped around 50%, from £8.1m to £4.2m. The cost of dealing with pension deficits is also increasing substantially.

Whilst petroleum based shipments remained stable throughout the last year, the Port of Milford Haven handled 45% fewer LNG shipments as international energy markets were influenced by a combination of the 2011 Japanese Tsunami and the advent of Shale gas in the US. In 2012, coal was financially a more attractive source of fuel for power generation in the UK than LNG.

The Port’s Chairman David Benson, said: “The Port will always be susceptible to energy market fluctuations which is why we are continuing to diversify and make the most of opportunities for investment in activities more within our control.

“During 2012 we focused primarily on investing in our sites at Pembroke Port and Milford Dock and actively pursued opportunities to be involved in the wind, hydro and biomass sectors of the renewable energy economy.

“The establishment of the Haven Waterway Enterprise Zone by Welsh Government was a very welcome development – particularly for Pembroke Port which has the potential to become a key delivery centre for marine renewables. Mustang Marine, based at Pembroke Port, has secured orders to build vessels for servicing wind farms which is leading to a new phase of investment and job creation.”

Chief executive Alec Don, added: “Our exciting plans to regenerate the Milford Dock and Marina areas are gathering momentum after gaining local support. This multi-million pound development will enhance the leisure, retail and fishing offering in Milford Haven – boosting economic prosperity in the town and rejuvenating the dock for the fishing industry.

“With a strong balance sheet the Port is well placed to continue with its investment programme.”

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Port of Milford Haven, April 22, 2013