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

 

South Port FY profit falls 4.3% on costs from higher volumes

South Port FY profit falls 4.3% on costs to cope with higher volumes

Aug. 23 (BusinessDesk) - South Port New Zealand, the nation’s southern-most port company, posted a 4.3 percent drop in full-year profit on costs to cope with higher cargo volumes and increased insurance premiums.

Profit was $5.99 million in the 12 months ended June 30, from $6.26 million a year earlier, the Bluff-based company said in a statement. Sales rose 3.5 percent to $26 million.

The port company experienced a 25 percent surge in cargo volumes in 2011, which had required more spending on workers, plant an infrastructure, it said. “The costs of the additional resources and higher insurance premiums resulted in a 5 percent decline in operating profit,” it said.

Total cargo through the port was at a record level for a second year, it said. The shares last traded at $3.27 and have declined 4.1 percent this year. Containerised cargo slipped to 32,500 TEU from 33,000.

“Container shipping lines are entering business alliances and vessel sharing arrangements which are designed to reduce operating costs in what can only be described as a brutal freight market,” chief executive Mark O’Connor said.

Log exports through the port fell by 27 percent and raw materials imported for Rio Tinto’s aluminium smelter fell, reflecting a 15 percent decline in production capacity at the plant. A high exchange rate, low aluminium prices and uncertainty over the price of electricity drove the decline at the smelter, the port said.

The company will focus on cost containment in the current year, saying New Zealand isn’t immune from global economic ills. It doesn’t expect any profit growth in 2013.

South Port will pay a final dividend of 14.5 cents a share, making 20 cents for the year, unchanged from 2011.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Flying Year-round To Popular Queensland Destinations

Air New Zealand is moving to year-round direct flights on its Auckland-Cairns, Auckland-Sunshine Coast and Christchurch-Gold Coast routes under an agreement with the Queensland Government... More>>




SEA: Another First For Solar Energy In New Zealand

The Sustainable Energy Association NZ (SEANZ) congratulates Sunergise on the commissioning of the Sunergise Kapuni Solar Power Plant, the largest in the country... More>>

Accenture: More Boomers Than Zoomers Want To Work From Home

While often associated with tech savvy Gen Z or Zoomers, new global research from Accenture shows that the push for more flexible working environments is being led by Gen Xers and Baby Boomers... More>>

Banking: Westpac New Zealand To Remain Part Of Westpac Group

Westpac New Zealand Limited (WNZL) remains part of Westpac Group following a decision for the two businesses not to demerge. Westpac Group Chief Executive Officer, Peter King, said: “After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>