South Port New Zealand has reported record profit, revenue and cargo volumes for the year ended June 30, supported by activity across Southland’s agriculture, forestry, renewable energy and aluminium sectors.
The NZX-listed company confirmed its full-year result and announced a board leadership change at its annual shareholders’ meeting on October 28.
After-tax profit increased 21% to a record $16.11 million, while normalised net profit after tax, excluding one-off items, rose 16.2% to $16.14m.
Revenue increased 14% to $71.8m, up from $63.3m in the previous financial year.
Total cargo volumes climbed 11.5% to a record 3.9m tonnes, while container throughput reached an all-time high of 62,000 TEU.
Volumes handled through Tiwai Wharf increased 16.1% to 940,000 tonnes, approaching historical levels.
South Port declared a final dividend of 20.5 cents per share, taking its full-year dividend to 29 cents per share.
Investment supports growth
The company recorded its highest annual spending under its asset management plan and invested further in growth projects, including an expanded container terminal and additional warehousing.
Outgoing chair Philip Cory-Wright says the port is monitoring potential regional developments, including wind farms at different stages of consenting and construction, the consented Hananui aquaculture project and the proposed Datagrid data centre near Makarewa.
“The port has embarked on a long-term port planning exercise to assist in prioritising opportunities, initially optimising existing infrastructure and operations, then consideration of longer-term transformation opportunities,” Cory-Wright says.
“Additionally, it is likely that a replacement tug and mobile harbour crane will be required in the short-to-medium term.”
Chief executive Derek Nind, who began in the role in July, says record cargo volumes have reinforced the need to invest in infrastructure, planning and staff.
“With cargo volumes at record levels, we will look to recruit around 21 additional roles over the next 12 to 18 months,” Nind says.
The growth has continued into the new financial year, with South Port handling 1m tonnes of cargo during the September quarter, up 13% from the same period last year.
Greer succeeds Cory-Wright as chair
Nicola Greer has succeeded Cory-Wright as South Port chair following his retirement at the annual shareholders’ meeting.
Cory-Wright served on the board for 16 years, including three years as chair.
Greer joined the South Port board in November 2019 and chaired its audit and risk committee.
The Queenstown-based company director also serves on the boards of Fidelity Life Assurance, Precinct Properties, Vulcan Steel and New Zealand Railways Corporation. She is also a member of the NZ Markets Disciplinary Tribunal.
Cory-Wright says Environment Southland’s recent sale of a 14% shareholding has improved trading liquidity while retaining local majority ownership.
“It has been a privilege to help guide South Port over the past 16 years, and to see the business grow and mature, supporting Southland’s economic development,” he says.
“South Port has all of the ingredients for a bright future.”
