South Port NZ Ltd - Interim Report to 31 December 2022

South Port NZ Ltd - Interim Report to 31 December 2022

INTERIM REPORT

South Port’s Interim Report for the period ended 31 December 2022 is now available on our website.

The 2023 first half has been characterised by excellent progress being made on some longer-term initiatives for the Port such as our channel dredging work associated with project Kia Whakaū, but with subdued operational performance reflecting constraints in China and a slowing domestic economy.

South Port’s NPAT for the first six months of FY2023 was $5.2 million (FY2022 $5.9 million). Several factors impacted on this interim result, including:
- There were increased stock food volumes imported into the region to service the dairy industry, and the exports of woodchips remain strong.
- The log market has maintained its downward cycle due to the currently depressed property market in China.
- Fertiliser volumes were down and are expected to remain similarly impacted for the remainder of the financial year due to lower sheep and beef prices.
- Increased financing costs due to higher interest rates and additional debt on the balance sheet.
- International container supply chains continue to be significantly disrupted.

Based on all known factors at the date of releasing its 2023 interim result, South Port estimates that its full year earnings should fall in the range of $11.1 million to $11.6 million (FY2022 $12.8 million).

PERFORMANCE SNAPSHOT

- Total cargo activity was 1,732,000 tonnes compared with 1,745,000 tonnes in the prior year interim period. This represents a decrease in cargo flows of 13,000 tonnes or 0.7%.
- There were increases in stock food (+28,000), alumina (+24,000), and woodchips (+35,000), however other bulk cargoes were negatively impacted, all down in comparison to the prior half year.
- Containerised cargo decreased 13% to 18,000 TEU (FY2022 20,800 TEU). The main decreases were imported products for the manufacturing and farming sectors.

It has been another busy period for our warehousing division. The disruption to the international container supply chain has also had an impact on our warehousing division with a steady build-up of cargo in our cold and dry stores. Several export orders near the end of CY22 however, relieved some of the significant build-up that was beginning to place strain on our available capacity.

INTERIM DIVIDEND

The South Port interim dividend of 7.50 cents per share for the half-year ending 31 December 2022 is due to be paid today.


Nigel Gear
Chief Executive
South Port New Zealand Limited

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