South Port NZ Limited - Interim Report to 31 December 2024

INTERIM REPORT

Increased bulk cargo volumes have supported a substantially improved financial performance by South Port in the first half of FY25.

In contrast to the uncertain trading conditions in the first half last year, the Port saw volumes rise across the majority of key commodity imports and exports.

South Port's NPAT for the first six months of FY25 was $5.76 million (1H24: $3.03 million).

Several factors impacted on this interim result, including:
• A particularly wet spring in the southern region which slowed grass growth in the agricultural sector leading to an increase in supplementary feed imports. This also stimulated a rebound of fertiliser import volumes from a particularly low level of activity in the FY24 year.
• Positive signs in the forestry sector with exports of both logs and woodchips showing signs of recovery.
• The temporary closure of a potline manufacturing aluminium at NZAS saw raw material imports and aluminium exports decrease in 1H25.
• In October 2024 the Company declared a 10.7m high tide draft, the result of successfully executing project Kia Whakaū, to deepen Bluff's entrance channel, swinging basin and berth pockets, which has led to a number of increased efficiencies in the supply chain.

Based on all known factors at the date of releasing its 2025 interim result, South Port estimates that its full year earnings should be above the upper end of the previous range of $9.3M to $10.3M indicated at the Annual Shareholders Meeting in October 2024.

PERFORMANCE SNAPSHOT

• Total cargo activity was 1,691,000 tonnes compared with 1,488,000 tonnes in the prior year's interim period. This represents an increase in cargo flows of 203,000 tonnes or 13.6%.
• There were increases in logs (+31,000 t), fertiliser (+41,000 t), woodchips (+59,000 t) and stock food (+143,000 t). Cargoes to be negatively affected were alumina (-53,000 t) and aluminium (-34,000 t), both of which were related to the temporary closure of a potline at the New Zealand Aluminium Smelter.
• Container volumes were similar for 1H25, with 20,600 twenty-foot equivalent unit (TEU) handled through the terminal (1H24 - 21,000 TEU). These volumes however were handled on fewer container vessels, 13 in 1H25 (17 in 1H24).

South Port has recently upgraded the western tip of the Island Harbour, primarily to seal a 2-hectare area for storage of wind farm equipment expected to come through Bluff, and as an overflow option for other cargoes. Turbines and equipment for stage two of Mercury Energy's Kaiwera Downs wind farm, 15km east of Gore, is on target to be imported through the Port in late 2025.

INTERIM DIVIDEND

The South Port interim dividend of 7.50 cents per share for the half-year ending 31 December 2024 is due to be paid to your nominated bank account today.


Nigel Gear
Chief Executive
South Port New Zealand Limited

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