Port profit rises 14% to $9.66m
RECORD cargo handling and growth in bulk cargo have underpinned a 14% boost to South Port’s aftertax profit of $9.66 million for the year to June.
There was a 13% increase in cargo flows through Bluff during the period, total volumes rising to a record 3,445,000 tonnes, due to strong growth in bulk cargo, which makes up 85% in total.
Cargoes of logs and woodchips reached one million tonnes for the first time.
Total operating revenue for the year rose 10.9% to $41 million and operating profit before financing costs and tax increased 13% to $13.8 million.
A final dividend of 18.5c took the fullyear dividend to 26c, fully imputed. The Southland Regional Council has a 66.48% stake in South Port and receives about $6.4 million in dividends.
South Port chairman Rex Chapman said cargo volumes and revenues were expected to be ‘‘stable’’ during the year ahead, though earnings were likely to be down 10%, but the company would try to maintain dividends at current levels.
South Port chief executive Nigel Gear said due to a particularly dry summer with poor pasture growth, stock food imports increased 89% during the past year.
‘‘Stock food has been imported into the region for a number of years, primarily as supplementary feed for the dairy industry.
‘‘Specialised products are typically shipped in containers with bulk coming in the form of molas ses and palm kernel.’’
The New Zealand Aluminium Smelter at Bluff had continued to deliver strong export volumes for the port, and would soon reopen a fourth potline.
Mr Gear said the delivery of imported containers to Invercargill by rail had been a great success.
Paving of a 15,000sq m log storage area on Island Harbour had been completed during the year, as the development or refurbishment of infrastructure was important to attract cargo volumes.
Design specifications had been finalised for a $5 million upgrade of the Town Wharf fuelimport berth, and construction would start in February and take a year.
‘‘This significant project will futureproof the wharf infrastructure for the next 50 years and allow for the continued efficient distribution of fuel imports into the Southland region and Wakatipu Basin,’’ Mr Gear said.
The Mediterranean Shipping Co’s weekly service had been split into two separate loops, covering the South and North Islands respectively, increasing Bluff’s capacity to load and discharge cargo and speeding up transit times worldwide.
There had been an increase in containerised cargoes handled at the port, he said.