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

 

South Port to maintain dividend in face of weaker earnings


By Paul McBeth

Oct. 25 (BusinessDesk) - South Port New Zealand reiterated plans to maintain its dividend this year, even as earnings are squeezed by increased spending to repair and replace ageing assets.

Chairman Rex Chapman reaffirmed guidance for earnings in the year ending June 30 to be about 10 percent lower than the record $9.66 million reported last year. That's due to the added cost of updating assets near the end of their life. The board also said it plans to keep paying the current dividend of 26 cents, representing a gross yield of 3.5 percent.

"For the moment trade forecasts for the port remain steady with forestry exporters still predicting strong demand in China, India and Japan," Chapman said. "The softening in the forecast farm gate milk price for the coming season could have an impact on farm inputs such as fertiliser and stock food but this will not be known until later in the year."

The board will update guidance at the first-half report in February. The port operator is holding its annual meeting in Bluff today, where shareholders will vote on whether to elect Rick Christie and Thomas Foggo to the board. Directors are also seeking a 3 percent, or $8,100, increase in the pool for their fees to $278,100.

Environment Southland owns 66 percent of the country's southern-most port. The regional council's South Port sub-committee meeting in August was told ageing infrastructure needed ongoing maintenance but that the port didn't have any major programmes on the horizon.

The shares last traded at $7.40 and have gained 23 percent so far this year, outpacing a 2.4 percent increase in the much-larger Port of Tauranga.

Chapman today said particularly strong Chinese demand for logs continued to support operations, with bulk cargo set to remain the cornerstone of its business. Expanded production at the Tiwai Point aluminium smelter will also provide more work.

The port's intermodal freight hub in Invercargill is tracking ahead of expectations and South Port said it's an important element to grow and diversify revenue. The company is also investigating how it can secure distribution relationships with Mataura Valley Milk and Plaman Global, which plans to mine black diatomite near Middlemarch.

Chapman said a recently completed external review will help the company lay the foundation for its five-year goals. A key element will likely be how the port can be a central logistics solution for the region.

"In order to achieve this, we need an appropriate and resilient infrastructural base; we need to keep our people safe and engaged in a shared vision for the company; we need to be guardians of the environment in which we operate; and we need to be engaged with the community and to earn the community’s support for the business," he said.

Council will hear a presentation on South Port next month.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: