International freight conditions continue to benefit the Port of Olympia’s marine terminal operations, according to Finance Director Tad Kopf’s presentation to the Port Commission on September 9.
The Port’s latest financial report shows that it earned $3.6 million in Q2 of 2024, in contrast to its projection of around $500,000, mainly due to better-than-expected revenues from the marina terminal.
Non-operating revenues, which include tenant revenue, interest income, and property tax, were also 20% higher than projected.
Higher revenues paired with lower-than-budgeted maintenance expenses across most of the port’s business lines helped the port earn 623% more than it estimated.
Most of the overperformance was derived from the marina terminal, which generated an income of $319,000, which is 156% higher than the projected loss of $572,000.
The international freight situation mainly drove the increase, with the marine terminal revenue at $4.3 million, 34% higher than the projected revenue of $3.2 million.
Loading and unloading fees were a significant contributor to the variance from the budget. They were $931,000, 171% higher than projected.
With more revenue came more operating expenses, which were $2.1 million, up 30% from the budget of $1.6 million.
The Olympia Regional Airport, one of the port’s business segments, netted $64,000, up by 126% compared to the projected loss of $247,000.
The increase was due to maintenance expenditures being less than budgeted. Maintenance expenditures were $213,000, 63% less than what was budgeted, at $573,000.
Operating revenues were, however, slightly under by 3% as space and hangar rental were down due to seasonality.
The marina incurred a loss of $127,000, which is still 42% higher than expected. Lower-than-expected expenses softened a projected $219,000 loss.
Revenue from the marina was down by 7% compared to projections due to lower fuel sales revenue and delayed revenue from general labor fees.
The port’s properties segment profited $46,000, which is 137% higher than the projected loss of $123,000. The positive variance was driven by higher operating revenue, up by 38% due to higher-than-expected space rentals.
Operating and maintenance costs were up but were offset by lower general and administrative overhead costs.
According to the presentation, the sale of the Commerce Building Center in Lacey during the first quarter also continues to skew the figures.
The report does not show how bond interest payments affect the bottom line, but the report did show how these payments were allocated to the four business segments.
The bond interest payments attributed to each business line are as follows:
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BevBassett
Thank you JOLT for publishing this information. So very important! Historically, The Olympian has never and would never print/publish these slides. That's because, historically, these reports were always missing important data and revealed losses in, usually, every single business unit at the Port. As dismal as this financial report is, it not only looks better in terms of profit/loss per business unit, but is is being published with free access and no paywall. That's an improvement.
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