South Port NZ Ltd – Interim Report to 31 December 2020

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2020
INTERIM REPORT

FINANCIAL PERFORMANCE
South Port has recorded a strong start to the financial year.
Containers, Cold Storage and Marine operations were the
standout performers. Bulk Cargo volumes were consistent with
the previous financial period and remain the backbone of the
Company’s cargo mix.
South Port’s NPAT for the first six months of FY2021 was
$6.1 million, a 33% lift in profitability (FY2020 $4.6 million).
Several factors impacted on this record interim result including:
öRecord container throughput.
öHigher returns from cold storage as a result of increased
storage and blast freezing activities.
öIncreased marine activity.
öTiming – some container volumes have been brought forward
due to supply chain issues.
The reported FY2021 interim profit should be read in conjunction
with the Outlook section of this Report where a year end NPAT
forecast range is provided.
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%. 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.
International container supply chains have been significantly
disrupted due to the COVID-19 pandemic. This has led
to an increase in the supply of empty containers and the
transshipment of containers through the Port as a result of
a temporary reconfiguration of the Mediterranean Shipping
Company’s Capricorn Service in New Zealand.
COVID-19
COVID-19 continues to play a significant factor in trade lanes.
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.
OPERATIONAL EVENTS
Cold Stores
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.
Maintenance
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.
Container Terminal Reefer Tower
A new reefer tower became operational in late January 2021.
This tower has created additional capacity for refrigerated
containers and provides storage efficiencies in the terminal.
Storm Bollards
New storm bollards have been successfully installed on
Berth 4 and are 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.
STRATEGIC PROJECTS
Channel Improvement Project
The Port has undertaken extensive consultation and completed
several environmental assessments in preparation for an
application for a resource consent for this 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. This
will provide for a safer transit through the channel and increase
the efficiency of loading vessels at the Port. A final decision
about the project and the timing of it will be subject to the
resource consent being granted.
Tug Review
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.
CUSTOMERS
New Zealand Aluminium Smelter (NZAS)
On 14 January 2021, Rio Tinto announced a new electricity
agreement with Meridian Energy that allows New Zealand’s
Aluminium Smelter (NZAS) to continue operating 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. Rio Tinto have stated that
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 our NPAT.
Open Country Dairy (OCD)
Record volumes of dairy products have been received and
packed at the Port during the last quarter of 2020 for OCD. 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.
Interim Report

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
R T CHAPMAN
Chairman
N G GEAR
Chief Executive
HEALTH, SAFETY AND WELLBEING (HSW)
A new prequalification process is now in place. This is an important
step to ensure that our contractors working on site have effective
health and safety systems in place to prevent damage to property,
harm to employees and the environment.
A new induction process is also underway and expected to be
operational in February 2021. This process will include greater
detail and increased focus on critical risks both at the Port and at
each department level.
OUTLOOK
COVID-19 will continue to influence the supply chain and create
uncertainty in the marketplace until there has been a successful
rollout of a 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. The Dairy industry forecast is also very positive with
early signals of $6.90 to $7.50 per kilogram of milk solids for the
current season. 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
After assessing the anticipated year end result, the Directors have
declared a fully imputed interim dividend of 7.50 cents per share
(2020 – 7.50 cents) payable on 8 March 2021. In the event that the
Company’s FY2021 year end profit falls within the above forecast
range then the Directors are confident that the full year dividend
payment will be consistent with the previous year.

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
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.
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
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).

WWW.SOUTHPORT.CO.NZ
Island Harbour, PO Box 1, Bluff 9842, New Zealand
 +64 3 212 8159  reception@southport.co.nz
  South Port NZ
Printed on 100% recycled paper

---

1
Dear Shareholder
Interim Report
South Port New Zealand’s Interim Report for the period ended 31 December 2020 is
now available on our website.
You can view the Report here.
South Port New Zealand Ltd has recorded a strong start to the financial year.
Containers, Cold Storage and Marine operations were the standout performers. Bulk
Cargo volumes were consistent with the previous financial period and remain the
backbone of the Company’s cargo mix.
South Port’s NPAT for the first six months of FY2021 was $6.1 million, a 33% lift in
profitability (FY2020 $4.6 million).
Several factors impacted on this 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.
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%. 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.
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).
Performance Snapshot
•Containerised cargo increased 28% to 27,000 TEU (FY2020 21,000 TEU). The
main increases were reflected in dairy, timber and refrigerated cargoes.
•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
use of our new blast freezer has improved the returns on this facility at the Port.
•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.

2
Interim NPAT to 31 Dec 2020
$6.10M
(up 33%)
Interim Dividend
7.50 cps
(no change)
Interim Dividend
The South Port interim dividend of 7.50 cents per share for the half year ending
31 December 2020 is due to be paid to your nominated bank account today.
Your electronic dividend advice is now available from the Link Investor Centre
(South Port’s Share Registry).
To access your dividend advice(s) please follow the instructions below:
1.Click on the Shareholder link(s) below (each link represents a separate
shareholding):
ExpressID link
2.Enter your Authorisation Code (FIN) for secure access.
3.Click on the icon next to the payment dated 8 March 2021 to view the
payment advice.
Yours sincerely
Nigel Gear
Chief Executive
South Port New Zealand Limited
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