Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


South Port posts record annual profit as volumes rise

South Port posts record annual profit as stock food, logs drive cargo volumes

By Paul McBeth

Aug. 20 (BusinessDesk) - South Port New Zealand, the Bluff port operator, lifted annual profit 2.7 percent to a record as increased volumes of stock food and logs drove cargo growth.

Net profit rose to $6.68 million, or 25.5 cents per share, in the 12 months ended June 30 from $6.5 million, or 24.8 cents a year earlier, the Bluff-based company said in a statement. Trading revenue rose 6.7 percent to $31.3 million on a record 2.72 million tonnes of cargo going through the port. Imported stock food volume was twice the 2013 level, while log exports were at a record 390,000 tonnes, it said.

South Port anticipates similar cargo levels in 2015, though forecasts a "slightly lower" annual profit in the 2015 financial year as global demand for dairy and forestry goods comes off the boil.

"South Port and its customers operating in these sectors are taking a more conservative view of projected activity for the coming season," chairman Rex Chapman said. "This forecast takes into account both anticipated challenging conditions in certain sectors and the impact of investing in new container handling infrastructure which will require a number of years of container growth to generate an appropriate financial return."

The board declared a final dividend of 16 cents per share, payable on Nov. 10 with a Oct. 28 record date. That takes the annual return to 22 cents per share, unchanged from a year earlier.

The shares were unchanged at $3.45, and have gained 9.9 percent this year.

South Port said tonnage from the New Zealand Aluminium Smelters' Tiwai Point plant were steady, and it will have to make "key decisions" in the next 18 months on the implications of securing a smaller parcel of electricity from Meridian Energy.

Chapman said the recent partnership between Fonterra Cooperative Group and Silver Fern Farms-led logistics company Kotahi and Port of Tauranga "will send ripples out into the NZ market" and it was unclear whether it will reduce competition and capacity.

"South Port maintains the view that market forces will ultimately dictate what level of service capacity and frequency is required by NZ exporters and importers," he said.

Last week, Tauranga's main rival Ports of Auckland announced plans team up with Napier Port and logistics group Icepak to build an inland port and freight hub in Palmerston North in a bid to make a cheaper freight distribution network.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news