South Port accelerates into 2021

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer South Port New Zealand Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$23,384 8.3%
Total Revenue $23,413 8.4%
Net profit/(loss) from
continuing operations
$6,065 33.1%
Total net profit/(loss) $6,065 33.1%
Final Dividend
Amount per Quoted Equity
Security
$0.07500000

Imputed amount per Quoted
Equity Security
$0.02916667
Record Date 26/02/2021
Dividend Payment Date 08/03/2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.79 $1.63
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

authorised
to make this announcement
Lara Stevens – Finance Manager
Contact person for this
announcement
Nicole Hodson
Contact phone number 027 465 5063
Contact email address nhodson@southport.co.nz
Date of release through MAP

12/02/2021

Unaudited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer South Port New Zealand Limited
Financial product name/description Fully Paid Shares
NZX ticker code
ISIN (If unknown, check on NZX
website)
NZSPNE0001S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 26/02/2021
Ex-Date (one business day before the
Record Date)
25/02/2021
Payment date (and allotment date for
DRP)
08/03/2021
Total monies associated with the
distribution
1

$1,967,617.35

Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.10416667
Gross taxable amount
3
$0.10416667
Total cash distribution
4
$0.07500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01323529
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed X
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.02916667
Resident Withholding Tax per
financial product
$0.00520833
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Lara Stevens – Finance Manager
Contact person for this
announcement
Nicole Hodson
Contact phone number 027 465 5063
Contact email address nhodson@southport.co.nz
Date of release through MAP

12/02/2021





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

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Financial Statements
STATEMENT OF COMPREHENSIVE INCOME
SIX MONTH PERIOD ENDED
31 DECEMBER 2020
Total operating revenues
from port services 23,384 21,583 44,573
Total operating expenses (12,849) (13,140) (26,688)
Gross profit 10,535 8,443 17,885

Administrative expenses (2,045) (1,871) (4,014)
Operating profit before
financing costs 8,490 6,572 13,871

Financial income 111 66 11
Financial expenses (183) (200) (569)
Net financing costs (72) (134) (558)
Other income 29 2 35
Surplus before income tax 8,447 6,440 13,348
Income tax (2,382) (1,884) (3,988)
Adjustments relating to tax
legistlation changes – – 70
Net surplus after income tax 6,065 4,556 9,430
Other comprehensive income – – –
Total comprehensive
surplus/(loss) after income tax 6,065 4,556 9,430
Basic earnings per share $0.231 $0.174 $0.359
31/12
2019
$000’s
31/12
2020
$000’s
Year to
30/06/20
$000’s
STATEMENT OF CASH FLOWS
SIX MONTH PERIOD ENDED
31 DECEMBER 2020
Cash flows from operating
(note 7) 5,622 3,847 12,605
Cash flows from investing (4,464) (2,533) (5,433)
Cash flows from financing (379) (1,353) (7,369)
NET INCREASE/(DECREASE) 779 (39) (197)
IN CASH
31/12
2019
$000’s
31/12
2020
$000’s
Year to
30/06/20
$000’s
UnauditedUnauditedAudited
UnauditedUnauditedAudited
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
TOTAL EQUITY 46,847 42,729 45,635
Non-Current Assets
Property, plant & equipment 53,612 50,225 51,189
Right-of-use assets 346 – 374
Deferred tax asset 235 – 159
Total non-current assets 54,193 50,225 51,722
Current Assets
Cash and cash equivalents 2,008 1,387 1,229
Trade and other receivables 8,559 7,682 6,460

Total current assets 10,567 9,069 7,689
Total assets 64,760 59,294 59,411
Non-Current Liabilities
Employee entitlements 31 35 38
Deferred tax liability – 19 –
Loans and borrowings 11,000 10,500 5,000
Financial liabilities 639 542 750
Lease liabilities 307 – 333
Total non-current liabilities 11,977 11,096 6,121
Current Liabilities
Trade and other payables 3,726 3,843 3,728
Employee entitlements 1,353 1,230 1,321
Provision for taxation 805 395 1,055
Loans and borrowings – 1 1,500
Financial liabilities – – –
Lease liabilities 52 – 51
Total current liabilities 5,936 5,469 7,655

Total liabilities 17,913 16,565 13,776
TOTAL NET ASSETS 46,847 42,729 45,635

Net asset backing per share $1.79 $1.63 $1.74
31/12
2019
$000’s
31/12
2020
$000’s
Year to
30/06/20
$000’s
UnauditedUnauditedAudited

Notes to the Financial Statements
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2020
1 ACTIVITIES OF SOUTH PORT GROUP
The Group is primarily involved in providing and managing port
and warehousing services.
2 ACCOUNTING POLICIES
The Group is a Financial Markets Conduct (FMC) reporting entity
for the purposes of the Financial Reporting Act 2013 and the
Financial Markets Conduct Act 2013. These financial statements
comply with these Acts and have been prepared in accordance
with the New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable Financial
Reporting Standards, as appropriate for profit-orientated
entities. These financial statements comply with International
Financial Reporting Standards (IFRS). There has been no change
in accounting policies. All policies have been applied on a
consistent basis with the most recent annual report.
3 AMENDMENTS TO NZ IFRS
A number of new standards, amendments to standards and
interpretations are effective for annual periods ending after
30 June 2020. Those which may be relevant to the Group are set
out below.
öAmendment to NZ IAS 1: Presentation of Financial Statements
– NZ IAS 1 prescribes the basis for the presentation of general
purpose financial statements to ensure the comparability of
financial information. The amendments to this standard are
effective for annual periods beginning on or after
1 January 2020 with the purpose to clarify the existing NZ IAS 1
disclosure requirements relating to materiality and structure
of the notes to the financial statements.
öConsequential amendments have been made to NZ IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors, NZ IAS 10 Events after the Reporting Period and NZ IAS
37 Provisions, Contingent Liabilities and Contingent Assets to
clarify the definition of material.
Adopting these amendments will not result in significant
changes in disclosure for the Group’s financial statements.
4 TAXATION
Income tax expense comprises current and deferred tax at the
company tax rate of 28%. Income tax expense is recognised in
the Statement of Comprehensive Income except to the extent
that it relates to items recognised directly in equity, in which
case it is recognised in equity.
5 SEGMENTAL REPORTING
The South Port Group operates in the Port Industry in
Southland, New Zealand, and therefore only has one
reportable segment and one geographical area based on the
information as reported to the chief operating decision maker
on a regular basis. South Port engaged with one major customer
who contributed individually greater than 10% of its total
revenue for the period ended 31 December 2020. This customer
contributed $5.68 million for the six months ended
31 December 2020 (2019: $5.06 million).

Parent Company
South Port New Zealand Limited
Subsidiary
Awarua Holdings Limited
GROUP COMPANIES
Nigel Gear
Chief Executive
Geoff Finnerty
Port General Manager
Jamie May
Business Development Manager
Hayden Mikkelsen
Container Manager
Frank O’Boyle
Infrastructure Manager
Lara Stevens
Finance Manager
Murray Wood
Warehousing Manager
Helen Young
Human Resources Manager
CORPORATE EXECUTIVES
Rex Chapman
Chairman
Philip Cory-Wright
Thomas Foggo
Nicola Greer
Clare Kearney
Jeremy McClean
DIRECTORS
Total equity at beginning
of the period 45,635 43,026 43,026
Profit/(loss) after income tax 6,065 4,556 9,430
Other comprehensive income – – –
Total comprehensive surplus 6,065 4,556 9,430
Distributions to shareholders (4,853) (4,853) (6,821)
Total equity at end of the period 46,847 42,729 45,635
31/12
2019
$000’s
31/12
2020
$000’s
Year to
30/06/20
$000’s
UnauditedUnauditedAudited
6 STATEMENT OF CHANGES IN EQUITY
SIX MONTH PERIOD ENDED
31 DECEMBER 2020
Surplus after taxation 6,065 4,556 9,430
Add/(less) items classified
as investing/financing activities – – –
Add/(less) non-cash items 1,883 1,792 3,816
Add/(less) movement in working
capital (2,326) (2,501) (641)
Net cash provided by operating
activities 5,622 3,847 12,605

7 NET CASH FLOW FROM OPERATING ACTIVITIES

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SOUTH PORT NEW ZEALAND LIMITED

NZX Announcement and Media Release

SOUTH PORT HALF YEAR 2021 RESULTS

12 February 2021

South Port accelerates into 2021

South Port has recorded a strong start to the 2021 financial year due to an excellent
operational performance.

“Of our various business activities, containers, cold storage and the marine operations
were standout performers in the half-year to 31 December,” said South Port Chairman,
Mr Rex Chapman.

“This result was secured based on the Port’s bulk cargo volumes which were
consistent with the corresponding period of 2019 and remain the backbone of the
Company’s cargo mix.”

“COVID-19 continues to play a significant factor in trade lanes worldwide,” he added.

“Globally, restrictions placed at borders, lockdowns and the lack of trained staff to work
at ports on cargo/container vessels has negatively impacted the efficiency of the
supply chain.”

“This will take a number of months to improve and will continue to create uncertainty
in the marketplace until there is a successful rollout of a vaccine.”

“Given these realities, South Port’s operating revenue and net profit after tax for the
first six months of FY21 are reassuringly strong.”

Revenue for 1H21 was $23.30 million, up 8.4% (1H20 $21.60 million) and NPAT was
$6.1 million, a 33% lift in profitability (1H20 $4.6 million).

Several factors impacted on this record interim result including:

▪ Record container throughput.
▪ Higher returns from cold storage as a result of increased storage and blast
freezing activities.
▪ Increased marine activity.
▪ Timing – some container volumes have been brought forward due to supply
chain issues.

Post-balance date, on 14 January 2021, Rio Tinto announced a new electricity
agreement with Meridian Energy that allows New Zealand’s Aluminium Smelter
(NZAS) to continue to operate the Tiwai Point Aluminium Smelter until
31 December 2024.

“This extension provides certainty to the Port and the region for the next four years
and will allow planning to start in earnest for a potential future without NZAS,” says
Mr Chapman. Rio Tinto has stated they will continue to negotiate with the Government
to secure a fairer transmission pricing agreement in the coming months.

“NZAS represents approximately 30% of South Port’s cargo flow and 20% of NPAT.”

INCREASED CARGO

Total cargo activity was 1,720,000 tonnes compared with 1,687,000 tonnes in the prior
year interim period.

“This represents an increase in cargo flows of 33,000 tonnes or 2%,” said
Mr Nigel Gear, South Port’s Chief Executive. “There was a pleasing increase in log
volumes (+125,000) however other bulk cargoes were negatively impacted with
fertiliser (-20,000), woodchips (-23,000) and NZAS cargoes (-70,000) all down from
the prior half year.

Containerised cargo increased 28% to 27,000 TEU (FY2020 21,000 TEU). The main
increases were reflected in dairy, timber and refrigerated cargoes.

A new reefer tower was recently constructed and has been operational since late
January 2021. This tower has created additional capacity for refrigerated containers
and provides storage efficiencies in the terminal.

Record volumes of dairy products have been received and packed at the Port during
the last quarter of 2020 for Open Country Dairy. “This is the result of the
commissioning and operation of the new third dryer at Awarua and the improvement
of market conditions for dairy products.”

“International container supply chains have been significantly disrupted due to the
COVID-19 pandemic,” said Mr Gear. “This has led to an increase in the transshipment
and supply of empty containers through the Port as a result of a temporary
reconfiguration of the Mediterranean Shipping Company’s Capricorn Service in
New Zealand.”

Future-proofing of the Port continues with new storm bollards successfully installed on
Berth 4 and currently under construction on Berth 8. “These new bollards will
significantly improve our safety margins for the mooring of larger vessels currently
calling at the Port.”

The installation of the Impressed Current Cathodic Protection (ICCP) system on the
Access Bridge continues to make excellent progress. Seven bays (of 14) have been
successfully completed with at least two further bays to be upgraded in this financial
year.

STRATEGIC PROJECTS

South Port has undertaken extensive consultation and completed several
environmental assessments in preparation for an application for a resource consent
for a channel improvement project which is expected to be lodged by March 2021.

The Port plans to remove the high spots within the channel to achieve a deeper draft
to provide for a safer transit through the channel and increase the efficiency of loading
vessels. A final decision about the project and the timing of it will be subject to a
resource consent being granted.

The Port is investigating the purchase of a 65 tonne bollard pull (BP) tug. The Port
currently operates two tugs with a combined BP of 75 tonnes. “A new tug will increase
our total capacity to 105 tonnes BP which would provide greater safety margins for the
larger vessels that are now calling at the Port.”

OUTLOOK

COVID-19 will continue to influence the supply chain and create uncertainty in the
marketplace until there has been a successful rollout of an effective vaccine
worldwide.

“The export log market into China is performing well with higher prices for A grade logs
being received and low levels of inventories which bodes well for sales of New Zealand
Radiata softwood into this region,” said Mr Gear.

“The dairy industry forecast for the coming season is also very positive with early
signals of $6.90 to $7.50 per kilogram of milk solids for the current season.”

“The impact of the COVID-19 pandemic on restaurants globally, together with an
improvement in the utilisation of the existing storage space, has increased the level of
refrigerated cargoes held in our cold stores.”

“This, coupled with the high utilisation of our new blast freezer, has improved the
returns on this facility at the Port.”

“There is still however some uncertainty in other cargoes and market destinations for
New Zealand goods, especially in economies impacted severely by COVID-19.”

Based on all known factors at the date of releasing its 2021 interim result, South Port
estimates that its full year earnings should fall in the range of $10.00 million to
$10.50 million (FY2020 - $9.43 million).

DIVIDEND

Anticipating this year end result, the Directors have declared a fully imputed interim
dividend of 7.50 cents per share (1H20 – 7.50 cents) payable on 8 March 2021. In
the event that the FY21 year-end profit falls within the above forecast range, the
Directors are confident that the full year dividend payment will be consistent with the
previous year.

ENDS


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
South Port New Zealand Ltd
Mobile: 027 454 8455
Email: rex.chapman@cplaw.co.nz


MEDIA:

Warren Head
Head Consultants Ltd
Mobile: 021 340 650
Email: headconsultants@xtra.co.nz


Kirsten Hoyle
Communications Advisor
South Port New Zealand Ltd
DDI +64 3 212 6050 │ P +64 3 212 8159 │ F +64 3 212 8685 | M +64 27 253 9112
Email: khoyle@southport.co.nz