Port of Dundee owner Forth Ports has reported strong growth in its profits last year, with revenue up £26 million.
Forth Ports has eight UK ports, including Rosyth, Burntisland, Kirkcaldy and Methil as well as Tilbury, London’s closest port.
Newly filed accounts for the year to December 2021 outline the group’s recovery from the pandemic.
Challenges faced by Port of Dundee owner
Chief executive Charles Hammond said it was “another year of dealing with various unpredictable factors”.
Those included Covid, plus changes to trading and supply chains, which presented challenges for the business.
Forth Ports had its “most challenging year ever” as profits fell more than 20% in 2020 as a result of the pandemic.
However, Forth Ports saw revenues up to £257.7 million over the reporting period, an increase of more than £26m on the year previous.
Pre-tax profits, excluding exceptional items and revaluations, was £72.9m last year, compared to £62.1m in 2019.
Chief financial officer Carole Cran said: “The group delivered a strong financial performance in 2021, which was another unpredictable year.
“We continue to face challenges in the aftermath of the pandemic and with the economic recovery. That is as well as the changes in trading patterns and supply chains.
“Our business and our people have demonstrated resilience to ensure that our customers encounter minimal disruption.”
Multi-million-pound investments plan
Forth Ports also plans multi-million-pound investments across the group.
This includes a £40m investment in a renewables hub which is currently supporting the Neart Na Gaoithe (NnG) offshore wind project.
Ms Cran said the completion of that project marked a “milestone year” for the Port of Dundee.
She said the new hub enabled the port to service the offshore wind sector, which is “critical to the transition to net zero”.
Ms Cran added: “These services have been further complemented by the acquisition of OM HeavyLift at the start of 2022 to form Forth Projects, a full-service provider for offshore wind farm logistics and marshalling.
“The Port of Dundee is currently the marshalling port for the NnG offshore wind project.
“It has recently been announced as the logistics and marshalling hub for Inch Cape, which will be Scotland’s largest offshore wind project.”
Port of Dundee will be used to assemble of all 54 turbines for the NnG project.
Forth Ports’ revenues down in Dundee
Revenues in Dundee dropped slightly over the reporting period, from £14.1m to £12.5m.
However that was attributed to the redevelopment of the port which meant certain areas were unavailable during the year.
The figure for 2020 was also inflated due to a number of oil rig lay-ups.
Despite the lower revenues, 2021 saw stronger pre-tax profit of £2.5m, up from £900,000 in 2020.
Meanwhile, the report said “considerable uncertainty” remains due to the war in Ukraine and the ongoing impact of Covid.
But the report submitted alongside the account said Forth Ports is in a “solid position”.
The business has a “platform for further growth and a number of strategic priorities to advance,” it said.
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