South Port's profit drops, cites challenging economy

South Port has announced a full year profit of $7.38 million for the 2024 financial year, down from $11.71m the previous year.

The company cited the soft economy and challenging market conditions as the main factors behind the decline.

However, South Port also highlighted two major developments that are expected to contribute to its long-term financial stability and business growth.

This includes a 20-year electricity agreement with New Zealand Aluminium Smelter, which will underpin a significant portion of the port's annual revenue.

The completion of the Kia Whakaū dredging project is also set to position the port for ongoing trade growth and accommodate larger vessels.

South Port's board has declared a final dividend of 19.5 cents per share, bringing the total dividend for the year to 27 cents per share.

The company's chief executive expressed optimism about future opportunities while acknowledging the continued challenges in the agricultural and forestry sectors.