South Port NZ Ltd - Interim Report to 31 December 2021

South Port NZ Ltd – Interim Report to 31 December 2021


INTERIM REPORT

South Port New Zealand’s Interim Report for the period ended 31 December 2021 is now available on our website.

South Port New Zealand Ltd has recorded a steady start to the financial year. Total bulk cargo volumes were consistent with the previous financial period and in line with expectations. Container volumes however were negatively impacted showing a decline for the same reporting period.

South Port’s NPAT for the first six months of FY2022 was $5.9 million, a 3.3% decrease in profitability (FY2021 $6.1 million).

Several factors impacted on this interim result including:

- The log market is currently in a downward cycle due to decreased demand and high inventory levels in the Chinese market.

- International container supply chains continue to be significantly disrupted as a result of the ongoing COVID-19 pandemic.

- Cold storage volumes declined due to a reduction in meat storage and fish vessels calling at the Port.

- Increased stock food volumes imported into the region to service the dairy industry.

Based on all known factors at the date of releasing its 2022 interim result, South Port estimates that its full year earnings should fall in the range of $9.70 million to $10.00 million (FY2021 $10.71 million).

PERFORMANCE SNAPSHOT

- Total cargo activity was 1,745,000 tonnes compared with 1,720,000 tonnes in the prior year interim report. This represents an increase in cargo flows of 25,000 tonnes or 1.5%. There was a pleasing increase in stock food (+41,000) and aluminium volumes (+28,000), however other bulk cargoes were negatively impacted with logs (-29,000) down in comparison to the prior half year.

- Containerised cargo decreased 23% to 20,800 TEU (FY2021 27,000 TEU). The main decreases were reflected in forestry and fertiliser products. Container vessels transiting the Port were similarly down 32% on the same period last year, at 17 calls (FY2021 25 calls).

- Our warehousing operations continue to operate well, handling similar if not increased volumes of cargo through these facilities.

- Excellent progress is being made on a number of significant maintenance and capital projects underway.

INTERIM DIVIDEND

The South Port interim dividend of 7.50 cents per share for the half year ending 31 December 2021 is due to be paid today.


Nigel Gear
Chief Executive
South Port New Zealand Limited

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