South Port lifts profit in volatile year

GROUP
NOTEGROUP
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2022
Consolidated Statement of Changes
in Equity
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2022
Share CapitalRetained EarningsTotal Equity
In Thousands of New Zealand Dollars 2022 2021

Total operating revenues from port services 5 48,584 47,291
Total operating expenses 7 (27,160) (28,447)

Operating profit before administrative and finance costs 21,424 18,844

Administrative expenses (4,642) (4,174)

Operating profit before financing costs 16,782 14,670

Financial income 1,374 340
Financial expenses (1,008) (367)

Net financing costs 6 366 (27)
Other income 5 10 36

Surplus before income tax 17,158 14,679

Income tax 10 (4,329) (3,965)

Net surplus after income tax 12,829 10,714

Other comprehensive income — —
Total other comprehensive surplus/(loss) after income tax — —
Total comprehensive surplus/(loss) after income tax 12,829 10,714

Basic earnings per share 17 $0.489 $0.408

In Thousands of New Zealand Dollars
Balance 1 July 2020 9,418 36,217 45,635
Profit/(loss) after income tax — 10,714 10,714
Other comprehensive income — — —
Total comprehensive income — 10,714 10,714
Contributions by and distributions to owners
Dividends paid during the period 15 — (6,821) (6,821)
Balance as at 30 June 2021 9,418 40,110 49,528

Balance 1 July 2021 9,418 40,110 49,528
Profit/(loss) after income tax — 12,829 12,829
Other comprehensive income — — —

Total comprehensive income — 12,829 12,829
Contributions by and distributions to owners
Dividends paid during the period 15 — (7,083) (7,083)
Balance as at 30 June 2022 9,418 45,856 55,274

Consolidated Statement of
Comprehensive Income
NOTE
113
Financials
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2022 South Port Annual Report
06

Consolidated Statement of Financial
Position
OF SOUTH PORT NEW ZEALAND LIMITED AS AT 30 JUNE 2022
On behalf of the Board
Dated 25 August 2022
Chairman of DirectorsDirector
The accompanying notes form part of these financial statements
In Thousands of New Zealand Dollars 2022 2021
TOTAL EQUITY 55,274 49,528
NON-CURRENT ASSETS
Property, plant and equipment 11 77,342 57,218
Right-of-use assets 24 427 317
Deferred tax asset 10(d) 1,107 466
Financial assets 14 789 —
Total non-current assets 79,665 58,001
CURRENT ASSETS
Cash and cash equivalents 12 1,303 1,627
Trade and other receivables 13 7,004 9,045
Financial assets 14 164 —
Total current assets 8,471 10,672
Total assets 88,136 68,673
NON-CURRENT LIABILITIES
Employee entitlements 19 50 32
Deferred tax liability 10(d) — —
Loans and borrowings 18 25,500 9,000
Financial liabilities 21 — 234
Lease liabilities 24 360 280
Total non-current liabilities 25,910 9,546
CURRENT LIABILITIES
Loans and borrowings 18 — —
Trade and other payables 20 3,325 6,553
Employee entitlements 19 1,548 1,418
Provision for taxation 10(c) 1,986 1,393
Financial liabilities 21 — 182
Lease liabilities 24 93 53
Total current liabilities 6,952 9,599

Total liabilities 32,862 19,145
TOTAL NET ASSETS 55,274 49,528
Net asset backing per share 17 $2.11 $1.89

NOTEGROUP
114

The accompanying notes form part of these financial statements
Consolidated Statement of Cash Flows
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2022
In Thousands of New Zealand Dollars 2022 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided by (applied to):
Receipts from customers 47,565 47,557
Payments to suppliers and employees (28,622) (27,392)
Interest received 5 6
Interest paid (913) (358)
Income taxes paid (4,377) (3,934)
Net goods and services tax paid 37 (52)

Net cash flow from operating activities 25 13,695 15,827

CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided by (applied to):
Proceeds from disposal of non-current assets 30 62
Acquisition of other non-current assets (23,367) (11,119)

Net cash used in investing activities (23,337) (11,057)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided by (applied to):
Dividend paid (7,083) (6,821)

Drawdown/(repayment) of borrowings 16,500 2,500
Lease liabilities paid (99) (51)
Net cash used in financing activities 9,318 (4,372)

NET INCREASE (DECREASE) IN CASH HELD (324) 398
Add cash at beginning of year 1,627 1,229
TOTAL CASH AT END OF YEAR 12 1,303 1,627
NOTEGROUP
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2022 South Port Annual Report
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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 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$49,968 4.8%
Total Revenue $49,968 4.8%
Net profit/(loss) from
continuing operations
$12,829 19.7%
Total net profit/(loss) $12,829 19.7%
Final Dividend
Amount per Quoted Equity
Security
$0.19500000

Imputed amount per Quoted
Equity Security
$0.07583333
Record Date 27/10/2022
Dividend Payment Date 08/11/2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.11 $1.89
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
Lara Stevens
Contact phone number (03) 212 8159
Contact email address lstevens@southport.co.nz
Date of release through MAP

25/08/2022

Audited financial statements accompany this announcement.

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Distribution Notice

Updated as at June 2022



Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

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 X Quarterly
Half Year Special
DRP applies
Record date 27/10/2022
Ex-Date (one business day before the
Record Date)
26/10/2022
Payment date (and allotment date for
DRP)
08/11/2022
Total monies associated with the
distribution
1

$5,115,805.11
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.27083333
Gross taxable amount
3
$0.27083333
Total cash distribution
4
$0.19500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.03441176
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed X

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.

Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.07583333
Resident Withholding Tax per
financial product
$0.01354167
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
Lara Stevens
Contact phone number (03) 212 8159
Contact email address lstevens@southport.co.nz
Date of release through MAP

25/08/2022






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

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25 August 2022
NZX Announcement / Media Release

SOUTH PORT NEW ZEALAND LIMITED (NZX SPN)
FULL YEAR 2022 RESULTS

Highlights Full Year ending 30 June 2022:
• Reported net profit after tax (NPAT) $12.83 million + 19.7%
• Operating Revenue $48.58 million + 2.7%
• Cargo 3.55 million tonnes +2.8%
• 2022 dividend 27.00 cents per share (consistent with FY21)

South Port lifts profit in volatile year
South Port New Zealand’s diversified trade mix has secured an improved annual result
for the operator of the Bluff Port in Southland, despite supply chain disruption to
containerised trade and an ongoing fluctuation in the log trade.
Total operating revenue from Port services has increased by 2.7% to $48.58 million
(FY2021: $47.29 million) during the 12 months to 30 June, 2022.
Net profit after tax of $12.83 million is a 19.7% increase on the FY2021 result ($10.71
million) and ahead of guidance provided at the half-year.
The result includes two one-off adjustments, a $0.98 million after-tax gain on interest
rate derivatives (due to increases in the floating interest rate), and a $0.68 million
adjustment to income tax / deferred tax (due to historical legislative changes to tax
depreciation on buildings).
Without the non-recurring items, normalised NPAT is $11.16 million (FY2021 $10.45
million) which is up 6.7%. Earnings per share is 49 cents (FY2021 41cps).
Earnings before income tax is $17.16 million (FY2021 14.68 million). Income tax is $4.33
million ($3.96 million).
South Port Chair, Rex Chapman said “it has been especially pleasing to see the high
levels of resilience shown in the face of operational challenges.”
Bulk cargoes supporting the NZAS aluminium smelter and the southern region’s
agricultural sector have shown growth.

Volatility in shipping movements was reflected in a 24% reduction in calls at Bluff by
container vessels.
While overall vessel calls dropped back to 305 calls, compared with 331 in FY2021,
South Port experienced an increase in bulk cargo trade.
“Greater volumes were handled on fewer vessel exchanges at Bluff, with the FY2022
results positively influenced by a 2.8% increase in overall cargo tonnage at 3,554,000
tonnes, compared with 3,454,000 tonnes in the previous year,” said Mr Chapman.
“The Board is pleased to confirm a consistent final dividend of 19.5 cents which brings
the full-year dividend to 27 cents per share (FY2021 27 cps), which represents a gross
return of 4.4% (net 3.2%) based on a share price of $8.48 as at 30 June 2022. The
dividend pay-out ratio is 55% of reported NPAT and equates to 73% of free cash flow.
Net cash flow from operating activities is $13.69 million (FY2021 $15.83 million).
The company maintains a strong balance sheet with net assets rising to $55.27 million
(FY2021 $49.53 million).
OUTLOOK
South Port estimates that FY2023 earnings will be down by 12.9% on the FY2022 result.
However, after removing the one-off items that occurred this year, underlying profit
will be consistent with FY2022 at approximately $11.2 million.
Based on this consistent earnings profile and in the absence of unforeseen
circumstances, the Directors will be endeavouring to maintain the current level of
dividend payment.
PORT OPERATIONS
“Safety First is our most important core value and is still very much front of mind in
everything we do at the Port,” said Chief Executive Nigel Gear.
“The Port industry has come under scrutiny in recent times due to two tragic fatalities,
most notably in the stevedoring sector.
South Port does not operate a stevedoring company; however it does contract local
stevedores for a container service calling at the Port. “As a result, we are reviewing
our operation to determine whether any additional changes need to be made to this
activity in light of these tragic events.”
Mr Gear said disruption in the container supply chain is continuing.
“The significant increase in demand for goods during the initial peak of the COVID-19
pandemic led to a shortage of container vessels, containers, and labour resources in
the supply chain to handle these volumes. This resulted in containers being stranded
worldwide, with no foreseeable resolution to this.

“COVID-19 continues to disrupt the China market where lockdowns are continuing in
an effort to eradicate the disease creating major bottlenecks at container ports in this
region.”
South Port has handled 44,000 TEU during the year, a reduction of 18.5% (FY2021 –
54,000 TEU).
Bulk cargo volumes were up by 6.1% at 3,123,000 tonnes (FY2021 – 2,942,000 tonnes),
led by a 148,000 tonne increase in stock food volumes imported into the region.
Log and timber volumes collectively were down 13.9% at 667,000 tonnes (FY2021 –
775,000 tonnes).
“Log activity has similarly been impacted by a downturn in the construction sector
and the COVID-19 lockdowns in the China market, the main destination for New
Zealand radiata pine.”
“This has led to a decrease in demand for logs shipped from New Zealand, which is
expected to last until the end of the 2022 calendar year.”
All other bulk cargoes were either in line with expectations or slightly up on the
previous period.
The NZAS at Bluff represents approximately 32% of the Port’s cargo volume and 20%
of NPAT.
Mr Gear said South Port has enjoyed a close and valued working relationship with
NZAS for 51 years.
We note that both NZAS and Meridian have announced that they are open to
extending the life of the smelter beyond 2024 and they are currently engaged in
negotiations for an electricity supply contract.
The consensus appears to be that there is room for the NZAS to continue operating
longer term and for a hydrogen plant to be established in the region.
During the past 12 months, planned expenditure on Port infrastructure has decreased
by 35% to $2.8 million (FY2021 - $4.3 million). The Island Harbour access bridge upgrade
project will now be finished early into FY2023, well in advance of initial expectations.
The construction of the Town Wharf fuel berth accessway, pipeline corridor, and
discharge platform has been completed, providing security for the fuel import sector
and the other berth users for a minimum of the next 50 years.
In the past 24 months, significant work has been carried out in the container terminal
to service this industry, including a new reefer tower, expansion of the storage
footprint, and the construction of a new container wash area. This work has continued
with the demolition of Shed 6.

“The Port has struggled with sufficient capacity to store containers and, to provide
clear areas to safely repair containers in the depot operation. This expansion will
provide breathing space for the coming 12 months.”
Cold store facilities provide refrigerated storage for meat and fish processing
companies in Bluff and the surrounding region. This operation underwent a significant
upgrade during the past 12 months.
The company is currently working through the consent process to deepen the port
channel, swinging basin, and berth pockets from 9.7 metres to 10.7 metres and is now
waiting for a decision, which is expected to be received later this year.

FOR FURTHER INFORMATION PLEASE CONTACT:
Mr Nigel Gear
Chief Executive
South Port New Zealand Ltd
Tel: (03) 212 8159


Mr Warren Head Charlotte Scoles
Managing Director Communications Advisor
Head Consultants Ltd South Port New Zealand Ltd
Tel: 021 340 650 Tel: 021 775 298