PROFIT before tax is up at the Port of Milford Haven despite a drop in cargo passing through according to its 2016 Annual Report.

The Port published its annual report this week and it shows “strong investment in the marine, leisure, tourism and marine renewable energy sectors".

It states that a profit before tax of £5.6m and a turnover of £25.3m was recorded for 2016.

Cargo throughput was 34.9m tonnes, a decrease from 2015’s 37.8m tonnes.

It has planned a diversification strategy to ensure the "required Port infrastructure is maintained".

Chief executive Alec Don states: “In 2016 the Port achieved a turnover of £25.3m. Although this is slightly below the level achieved in 2015, profit before tax at £5.6m for the year is 26% up on the previous year.

“Progress made on our property investment and development activity is having a greater influence on the Port’s results. This year we recorded a gain of £300,000 in the valuation of our property investments and our development costs for Milford Waterfront are now being recorded as an asset.

“When these effects are stripped out it is important to note that the underlying trading performance of our core port operations was in fact weaker in 2016 than in the previous year, primarily due to a substantial reduction in the throughput of LNG.

“It is, however, an important indicator of the overall health of the organisation and a testament to the work done to improve the Port’s resilience in the face of turbulent energy markets that the Port’s operating cash flow increased from £8.1m in 2015 to £9.2m in 2016. Whilst resilient, we are not immune. South Hook LNG volumes were down significantly in 2016 and are expected to be lower again in 2017.”

Highlights of 2016 includes the official launch of the Milford Waterfront brand, a flagship development for the Port and Milford Marina celebrated its 25th anniversary.

The report also covers the significant investment made on the marine side of the business such as the state-of-the-art marine navigation simulation suite which was installed and will provide the Port’s own marine professionals with training software as well as being able to offer it to external bodies and eventually market it to a global audience.

Investment was also made in a fleet of new pilot vessels – St Brides and St Davids, with St Govans expected to arrive in 2017.

It states that volumes at Pembroke Dock Ferry Terminal continued to show annual growth on both the freight and passenger side, as did volumes of imports and exports at Pembroke Port.

“There is great optimism for the marine renewables sector in Pembrokeshire which was cemented by the creation of a Marine Hub at Pembroke Port. Following the approval of the £1.3bn Swansea Bay City Deal in March 2017 by the UK’s Prime Minister, our Pembroke Dock Marine project can now move forward and activity within the renewables industry as a whole is expected to increase with earnest over the coming months and years,” adds the report.

Mr Don added that dedication and collaboration of Port staff, who continuously go that “extra mile”, has assisted in the pleasing set of results in turbulent markets.

“2017 is set to be considerably more challenging, with significantly reduced volumes of LNG currently affecting the business. In line with the rest of the market we also experienced a substantial increase in our pension liabilities. It is for these aspects of volatility we have ensured as a business that we have a strong balance sheet and are pursuing growth and development in the infrastructure and property parts of our business,” he added.