South Port New Zealand reported a net profit of $11.71 million for 2023, an 8.7% increase from the previous year.
The company's cargo mix remained stable, with only a 2.5% decrease in volume despite lower container volumes.
However, due to uncertainty in international trade and slower-than-expected demand, South Port has adjusted its earnings guidance for 2024.
Trade volumes for the first quarter of FY24 were below forecast and 10% lower than the same quarter last year.
The company attributes this to weaker market conditions, particularly in the Chinese market for log exports.
The farming sector is also experiencing difficulties due to lower export prices, higher inflation, and interest rates.
As a result, South Port's earnings outlook is uncertain, and the board expects earnings to be at the lower end of $9 million after tax.
The company plans to reduce costs to minimize the impact of the trade slowdown.
South Port has maintained a total dividend of 27 cents per share for FY23.
The company's share price has decreased due to increased interest rates and a weakening NZ equity market.
However, the 10-year cumulative total shareholder return shows positive growth.
South Port completed several projects, including the deepening of the entrance channel and the Town
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