Covid-19 Pandemic Update

SOUTH PORT NEW ZEALAND LIMITED


NZX & MEDIA RELEASE


27 March 2020


Covid-19 Pandemic Update

South Port is classified as an essential service and continues to operate under the
Covid-19 Level 4 restrictions announced by the Government on 25 March 2020.

During the period of the lockdown South Port’s priority will be to safeguard the
health, safety and wellbeing of its staff, while ensuring essential cargo can continue
to access the Port for both import and export.

South Port Chief Executive, Nigel Gear said today that “the Company has
comprehensive Covid-19 response plans in place to protect staff and ensure
business continuity.”

“These contingency plans and the cooperation and commitment of South Port staff is
enabling the business to continue to operate to deliver essential services to the
region.”

At the time of the release of the Company’s interim result on 13 February, Mr Gear
said “the recent outbreak of the coronavirus has sent ripples through the
international marketplace, impacting tourism and trade. There is a fair amount of
uncertainty as to the level of impact however the Port will notify shareholders should
there be any material changes in the coming months.”

Mr Gear now says “the national impact of the pandemic and the necessary
Government response to it has escalated dramatically since 13 February. South
Port is fortunate that two-thirds of its cargoes are classified as essential, and in the
case of NZAS are exempt from the lockdown restrictions.”

“The most affected cargoes are logs, wood chips and processed forestry products
which are at this stage classified as non-essential.”

“The loss of these cargoes together with unbudgeted additional labour and other
costs associated with changed operational requirements will have an impact on the
current year profit.”

The Company in its 13 February interim profit announcement, said that “based on all
known factors at the date of releasing its 2020 interim result, South Port estimates
that its full year earnings should fall in the range of $8.2M-$8.7M (FY2019 -
$9.79M).”

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South Port Chairman, Rex Chapman today said that, “based on all known factors we
now expect full year earnings to be at the lower end of this range or slightly less.
This guidance is based on a number of assumptions and most importantly that the
integrity of the supply chain for essential cargoes remains intact. Further updates
will be provided if there are material changes.”



FOR FURTHER INFORMATION PLEASE CONTACT:

Mr Nigel Gear
Chief Executive
South Port New Zealand Ltd
Tel: (03) 212 8159
Email: ngear@southport.co.nz

Mr Rex Chapman
Chairman
Mobile: 027 454 8455
Email: rex.chapman@cplaw.co.nz