Weather conditions have led to solid results for New Zealand’s southernmost commercial deep water port.
Bluff’s South Port New Zealand has reported $4.9 million in earnings for the first six months of the 2018 financial year.
It exceeds the $4.1 million result for the same period the year before.
Chairman Rex Chapman says Southland’s warm and dry weather during the half year to December was a major factor for the strong result.
Dry weather has a negative impact on pasture growth which leads to an increase in stock food imports for the dairy industry, he says.
Large volumes of inbound fertiliser and strong log exports have also boosted results.
“Market conditions for logs are buoyant and export volumes are expected to remain consistent with some potential upside,” Chapman says.
After assessing the anticipated year end result and future increased capital expenditure, the South Port directors have announced an interim dividend of 7.5 cents per share which will be paid on March 6.
South Port estimates its full year earnings will fall in the range of $8.65 million to $8.90 million.
