South Port is reporting a strong uplift in log and container volumes, imported fertiliser, stock food and cold storage operations since COVID-19 restrictions.
As a result, it expects full year earnings will be more than the previous forecast range of $8.2 million to $8.7m.
On March 27, the Bluff port operator provided a COVID-19 pandemic update with adjustment to its profit guidance expected to be at the lower end of the $8.2m to $8.7m range or slightly less.
“As we reported on 27 March approximately one third of our cargoes were classified as non-essential and were affected by the alert level 4 restrictions announced,” South Port chief executive Nigel Gear says.
“The most affected cargoes were logs, woodchips and processed forestry products. It was anticipated that the loss of these cargoes together with unbudgeted additional labour and operating costs would have an impact on the forecasted current year profit.
“Since the lifting of lockdown restrictions there has been a strong uplift in log volumes exported through the port.
“There has also been an increase of imported fertiliser and stock food, an improved contribution from our cold storage operation along with a lift in container volumes,” Gear says.
“The Company is now pleased to advise that this higher than expected trade activity late in the financial year will result in a much improved full year profit compared with earlier expectations.”
