South Port remains positive despite market disruption

Island Harbour
PO Box 1
Bluff 9842
New Zealand
P + 64 3 212 8159
E reception@southport.co.nz
W www.southport.co.nz





MEDIA RELEASE
SOUTH PORT HALF-YEAR FY2023 RESULTS


9 February 2023


NZX Announcement and Media Release

NZX: SPN: South Port New Zealand

South Port retains positive outlook despite short term market disruption

The South Port 2023 first half has been characterised by excellent progress being
made on some longer term initiatives for the Port, but with subdued operational
performance reflecting demand constraints in China and a slowing domestic
economy.

Bulk cargoes through South Port New Zealand held up well in the opening half-year
of FY2023, to 31 December 2022, however slightly behind expectations. Total cargo
moved through the Port of Bluff at 1,732,000 tonnes (compared to 1,745,000 tonnes
in FY22).

Container volumes continue to be negatively impacted, showing a decline for the
same reporting period.

Operating revenue earned for the half-year stood at $24.94 million (FY21 $23.34
million).

South Port’s NPAT for the first six months of FY2023 was $5.2 million (FY2022 $5.9
million). Earnings per share were 19.6 cents (FY2022 22.4 cps).

Having regard to the forecast year-end result, the directors have declared a fully
imputed interim dividend of 7.50 cents per share (1H2022 7.50 cps) payable on 7
March 2022.

Contributing factors to the slow start to the year, include:

• The downward cycle in the log market due to the currently depressed property
market in China.

• Reduced fertiliser volumes, which are likely to remain similarly impacted for the
remainder of FY2023 due to depressed sheep and beef prices.

• Increased financing costs due to upwards movement in interest rates and
additional debt on the balance sheet.

As outlined above, total cargo flows were 13,000 tonnes or 0.7% below the prior
year’s interim period.

Increases were registered in stock food (+28,000), alumina (+24,000), and woodchips
(+35,000), however, other bulk cargoes were negatively impacted with logs (-16,000),
fuel (-20,000), and fertiliser (-44,000) all down in comparison to the prior half-year.

International container supply chains continue to be significantly disrupted and this
will continue until there is a return to normal shipping windows, especially at the
larger container ports in New Zealand, says chief executive Nigel Gear.

“Containerised cargo decreased 13% to 18,000 TEU (FY2022: 20,800 TEU). The
main decreases were imported products for the manufacturing and farming sectors.”

Container vessels transiting the Port were the same as last year at 17 calls.

OPERATIONS

Warehousing – Market and container service disruption has also had an impact on
our warehousing division with a steady build-up of cargo in our cold and dry stores.
Several export orders near the end of CY22 however, relieved some of the significant
build-up that was beginning to strain our available capacity.

Marine support – The tug Te Matua is back in service having been dry-docked in
4Q2022 for a 5-year survey. The new tug Rakiwai has completed 12 months of
service, during which there has been extensive training of pilots and tugmasters. The
Rakiwai is proving to be an excellent addition to our towing capacity.

PROJECTS

On 31 August 2022, South Port was granted resource consent by Environment
Southland for project Kia Whakaū. The removal of fragmented rock under an existing
consent nearly achieved one of the objectives set out in project Kia Whakaū, to reach
9.7m CD in the harbour entrance channel.

The successful completion of the Kia Whakaū project will provide additional capacity
to load more cargo on vessels calling at the Port, increase efficiencies, and provide a
safer transit through the entrance channel. The completion of the project will also
enable the Port to service future growth opportunities. The Port is currently working
through contractual requirements and we expect that work to complete this project
will begin in the second quarter of CY2023.

South Port has provided port and shipping responses to Meridian Energy and
Woodside Energy as they move forward to the development stage of the proposed
Southern Green Hydrogen project in Southland.

The market awaits the outcome of discussions between New Zealand Aluminium
Smelter (NZAS) and electricity generators over a potential supply contract that will
allow the smelter to continue operating after December 31, 2024. South Port

believes there is the capacity to support both NZAS and the establishment of a
hydrogen plant in the region post-2024.

It is pleasing to see that the first stage of Mercury Energy’s 240MW Kaiwera Downs
wind farm, 15km east of Gore, has begun development.

OUTLOOK

“The war in Ukraine, the rate of economic recovery in China and the threat of a global
recession are impacting marketplaces and this has a flow-on impact on commodity
prices,” said Mr Chapman.

“The container supply chain is still disrupted and although expectations are that it will
improve, the timing is unclear.”

Based on all factors currently known, South Port provides guidance for FY23
earnings in the range of $11.10 million to $11.60 million (versus FY22 $12.8 million).

In the event that the FY2023 year-end profit is within the above forecast range, the
Directors expect the full-year dividend will be at least consistent with that paid in
FY2022.


ENDS


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

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

Media:
Charlotte Scoles
Communications Advisor
South Port New Zealand Ltd
Tel: 021 775 298
Email: cscoles@southport.co.nz

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Financial Statements
Statement of Comprehensive Income
SIX MONTH PERIOD ENDED
31 DECEMBER 2022
Total operating revenues
from Port services 24,939 23,342 48,584
Total operating expenses (16,435) (14,382) (27,160)
Operating profit before
administrative and 8,504 8,960 21,424
finance costs
Administrative expenses (986) (757) (4,642)
Operating profit before
financing costs 7,518 8,203 16,782

Financial income 368 609 1,374
Financial expenses (760) (468) (1,008)
Net financing costs (392) 141 366
Other income 95 10 10
Surplus before income tax 7,221 8,354 17,158
Income tax (2,068) (2,490) (4,329)
Net surplus after income tax 5,153 5,864 12,829
Other comprehensive income – – –
Total comprehensive
surplus/(loss) after income tax 5,153 5,864 12,829
Basic earnings per share $0.196 $0.224 $0.489
Statement of Cash Flows
SIX MONTH PERIOD ENDED
31 DECEMBER 2022
Cash flows from operating
(note 6) 5,434 5,002 13,695
Cash flows from investing (9,508) (15,625) (23,337)
Cash flows from financing 4,838 10,858 9,318

764 235 (324)
31/12
2021
$000’s
31/12
2022
$000’s
Year to
30/06/22
$000’s
31/12
2021
$000’s
31/12
2022
$000’s
Year to
30/06/22
$000’s
UnauditedUnauditedAudited
UnauditedUnauditedAudited
Statement of Financial Position
AS AT 31 DECEMBER 2022
TOTAL EQUITY 55,311 50,276 55,274
Non-Current Assets
Property, plant & equipment 84,184 72,399 77,342
Right-of-use assets 379 289 427
Deferred tax asset 1,189 397 1,107
Financial assets 870 190 789
Total non-current assets 86,622 73,275 79,665
Current Assets
Cash and cash equivalents 2,067 1,862 1,303
Trade and other receivables 8,868 6,534 7,004
Financial assets 441 – 164

Total current assets 11,376 8,396 8,471
Total assets 97,998 81,671 8 8 ,1 3 6
Non-Current Liabilities
Employee entitlements 56 38 50
Loans and borrowings 35,500 25,000 25,500
Lease liabilities 320 252 360
Total non-current liabilities 35,876 25,290 25,910
Current Liabilities
Loans and borrowings – – –
Trade and other payables 4,358 3,692 3,325
Employee entitlements 1,874 1,461 1,548
Provision for taxation 492 897 1,986
Lease liabilities 87 55 93

Total current liabilities 6,811 6,105 6,952

Total liabilities 42,687 31,395 32,862
TOTAL NET ASSETS 55,311 50,276 55,274

Net asset backing per share $2.11 $1.92 $2.11
31/12
2021
$000’s
31/12
2022
$000’s
Year to
30/06/22
$000’s
UnauditedUnauditedAudited
NET INCREASE/(DECREASE)
IN CASH
5

Net cash provided by operating
activities
Notes to the Financial Statements
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2022
Total equity at beginning
of the period 55,274 49,528 49,528
Profit/(loss) after income tax 5,153 5,864 12,829
Other comprehensive income – – –
Total comprehensive surplus 5,153 5,864 12,829
Distributions to shareholders (5,116) (5,116) (7,083)
Total equity at end of the period 55,311 50,276 55,274
31/12
2021
$000’s
Year to
30/06/22
$000’s
31/12
2022
$000’s
Unaudited
05 Statement of Changes In Equity
SIX MONTH PERIOD ENDED
31 DECEMBER 2022
Unaudited
Surplus after taxation 5,153 5,864 12,829
Add/(less) items classified
as investing/financing activities – – –
Add/(less) non-cash items 1,839 1,515 2,357
Add/(less) movement in working
capital (1,558) (2,377) (1,491)

5,434 5,002 13,695

06 Net Cash Flow from Operating Activities
01 Activities of South Port Group
The Group is primarily involved in providing and managing
port and warehousing services.
02 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)
as appropriate for condensed interim financial statements.
They comply with New Zealand equivalents to International
Accounting Standards 34 (NZ IAS 34) Interim Financial
Reporting, and International Accounting Standards 34. There
has been no change in accounting policies. All policies have
been applied on a consistent basis with the most recent
annual report.
03 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.
Audited
04 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 2022. This
customer contributed $4.14 million for the six months ended
31 December 2022 (2021: $4.41 million).
6

Parent Company
South Port New Zealand Limited
Subsidiary
Awarua Holdings Limited
Group
Companies
The original Bluff Harbour
Board building, circa 1910.
Directors
Rex Chapman
Chair
Philip Cory-Wright
Nicola Greer
Michelle Henderson
Clare Kearney
John Schol
Corporate
Executives
Nigel Gear
Chief Executive
Geoff Finnerty
Port General Manager
Jamie May
Commercial Manager
Hayden Mikkelsen
Container Manager
Frank O’Boyle
Infrastructure and
Environmental Manager
Lara Stevens
Chief Financial Officer
Murray Wood
Warehousing Manager
Helen Young
People and Safety Manager
7

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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 Quarterly
Half Year X Special
DRP applies
Record date 23/02/2023
Ex-Date (one business day before the
Record Date)
22/02/2023
Payment date (and allotment date for
DRP)
07/03/2023
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

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
$0.02916667
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 – Chief Financial Officer
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

09/03/2023






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

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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 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$25,402 6.0%
Total Revenue $25,402 6.0%
Net profit/(loss) from
continuing operations
$5,153 -12.1%
Total net profit/(loss) $5,153 -12.1%
Interim Dividend
Amount per Quoted Equity
Security
$0.07500000

Imputed amount per Quoted
Equity Security
$0.02916667
Record Date 23/02/2023
Dividend Payment Date 07/03/2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.11 $1.92
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 – Chief Financial Officer
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

09/02/2023

Unaudited financial statements accompany this announcement.