Overview
The first six months of the year have been challenging. Revenue of $88.2 million was $2.5 million higher than for the same period last year, yet still fell $3.9 million short of budget, and, despite being $2.2 million lower than budget, total expenditure was $91.6 million.
The primary challenges to NIWA's financial performance are inflationary pressures in an environment where research revenue has been fixed for many years, revenue generation in a fiscally constrained environment, and improving overall productivity. Management is actively considering how to respond to these challenges and is in the process of developing and implementing strategic measures to ensure NIWA’s continuing financial sustainability in the face of the ongoing and escalating demand for the answers our science can provide.
The new NIWA Hamilton research facility was officially opened on 4 August. These $45 million state-of-the-art facilities were completed on time, to specification and within budget. The new research vessel Kaharoa II is on schedule and within budget. It will undergo sea trials in January 2024, and delivery is set for 22 February. A business case has been prepared for the purchase of a new supercomputer to replace the end-of-life Māui in Wellington and Kupe in Auckland. The experimental, commercial-scale Recirculating Aquaculture System (RAS) has been successfully completed and commissioned and the focus now is on growing the kingfish stock levels to an initial production target of 600 tonnes per annum.
Details about these key strategic investments follow, with summaries of several of the significant science advances achieved over the past six months.
Financial results
The first six months of the year presented considerable challenges for NIWA, as reflected in the financial results. Despite achieving revenue of $88.2M during this period, the result fell $3.9M short of the budget, though it exceeded that for the same period last year by $2.5M.
Total expenditure of $91.6M was $2.2M lower than budget, but $4.9M higher than that for the same period last year.
Loss before tax was $(3.5)M, compared with a budgeted loss before tax of $(1.8)M. Loss after tax for the six-month period was $(2.8)M, against a budget of $(1.3)M.
The closing cash balance and short-term borrowings of $17.0M were $6.0M higher than budget, driven by higher-than-expected cash outflow and lower-than-budgeted cash inflow from operating activities.
Capital spending for the period was $17.4M, against a budget of $24.0M due to differences in the timing of investment spending.
Download the full Half Yearly Report 2023: