South Port maintains profitability

GROUP
NOTEGROUP
Consolidated Statement of Changes in Equity
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2023
Share CapitalRetained EarningsTotal Equity
In Thousands of New Zealand Dollars
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
Balance 1 July 2022 9,418 45,856 55,274
Profit/(loss) after income tax — 11,712 11,712
Other comprehensive income — — —
Total comprehensive income — 11,712 11,712
Contributions by and distributions to owners
Dividends paid during the period 15 — (7,083) (7,083)
Balance as at 30 June 2023 9,418 50,485 59,903
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2023
Consolidated Statement of Comprehensive Income
NOTE
In Thousands of New Zealand Dollars 2023 2022
Total operating revenues from port services 5 53,589 48,584
Total operating expenses 7 (30,385) (27,160)
Operating profit before administrative and finance costs 23,204 21,424
Administrative expenses (5,341) (4,642)
Operating profit before financing costs 17,863 16,782

Financial income 272 1,374
Financial expenses (1,725) (1,008)

Net financing costs 6 (1,453) 366

Other income 5 104 10
Surplus before income tax 16,514 17,158

Income tax 10 (4,802) (4,329)

Net surplus after income tax 11,712 12,829

Other comprehensive income — —
Total other comprehensive surplus/(loss) after income tax — —
Total comprehensive surplus/(loss) after income tax 11,712 12,829

Basic/diluted earnings per share 17 $0.446 $0.489
90

Consolidated Statement of Financial Position
OF SOUTH PORT NEW ZEALAND LIMITED AS AT 30 JUNE 2023
On behalf of the Board
Dated 25 August 2023
Chair of DirectorsDirector
The accompanying notes form part of these financial statements
In Thousands of New Zealand Dollars 2023 2022
TOTAL EQUITY 59,903 55,274
NON-CURRENT ASSETS
Property, plant and equipment 11 87,727 77,342
Right-of-use assets 24 330 427
Deferred tax asset 10(d) 1,106 1,107
Financial assets 14 658 789
Total non-current assets 89,821 79,665
CURRENT ASSETS
Cash and cash equivalents 12 1,035 1,303
Trade receivables and prepayments 13 6,509 7,004
Financial assets 14 541 164
Total current assets 8,085 8,471

Total assets 97,906 88,136
NON-CURRENT LIABILITIES
Employee entitlements 19 59 50
Loans and borrowings 18 25,000 25,500
Lease liabilities 24 262 360
Total non-current liabilities 25,321 25,910
CURRENT LIABILITIES
Loans and borrowings 18 5,000 —
Trade and other payables 20 4,105 3,325
Employee entitlements 19 1,897 1,548
Provision for taxation 10(c) 1,582 1,986
Lease liabilities 24 98 93
Total current liabilities 12,682 6,952

Total liabilities 38,003 32,862
TOTAL NET ASSETS 59,903 55,274
Net asset backing per share 17 $2.28 $2.11
NOTE
GROUP
91
South Port
2023 Annual Report
Section 07
Financials

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 2023
In Thousands of New Zealand Dollars 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided by (applied to):
Receipts from customers 54,086 47,565
Payments to suppliers and employees (30,460) (28,622)
Interest received 26 5
Interest paid (1,717) (913)
Income taxes paid (5,205) (4,377)
Net goods and services tax paid (282) 37
Net cash flow from operating activities 25 16,448 13,695
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided by (applied to):
Proceeds from disposal of non-current assets 330 30
Acquisition of other non-current assets (14,370) (23,367)

Net cash used in investing activities (14,040) (23,337)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided by (applied to):
Dividend paid (7,083) (7,083)
Drawdown/(repayment) of borrowings 4,500 16,500
Lease liabilities paid (93) (99)
Net cash used in financing activities (2,676) 9,318
NET INCREASE (DECREASE) IN CASH HELD (268) (324)
Add cash at beginning of year 1,303 1,627
TOTAL CASH AT END OF YEAR 12 1,035 1,303
NOTEGROUP
92

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023


Results for announcement to the market
Name of issuer South Port New Zealand Limited
Reporting Period 12 months to 30 June 2023
Previous Reporting Period 12 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$53,965 7.9%
Total Revenue $53,965 7.9%
Net profit/(loss) from
continuing operations
$11,712 -8.7%
Total net profit/(loss) $11,712 -8.7%
Final Dividend
Amount per Quoted Equity
Security
$0.19500000
Imputed amount per Quoted
Equity Security
$0.07583333
Record Date 26/10/2023
Dividend Payment Date 07/11/2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.28 $2.11
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

25/08/2023

Audited financial statements accompany this announcement.

---

Distribution Notice

Updated as at June 2023



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 26/10/2023
Ex-Date (one business day before the
Record Date)
25/10/2023
Payment date (and allotment date for
DRP)
07/11/2023
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 – 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

25/08/2023






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

---

25 August 2023
NZX Announcement / Media Release

SOUTH PORT NEW ZEALAND LIMITED
FULL YEAR 2023 RESULTS

South Port maintains profitability on the back of a diverse cargo base
South Port New Zealand Ltd has reported a record normalised profit for the year
ended 30 June 2023, despite some headwinds facing the primary sector. This result
has been backed by a diverse range of cargoes being handled through the Port.

South Port’s FY23 reported after-tax profit of $11.71 million represents an 8.7%
decrease on the 2022 result ($12.83 million) but is ahead of the guidance provided
in the Company’s 2023 interim report ($11.1 – $11.6 million).

Normalised profit was $11.50 million (2022 - $11.16 million), a 3.1% increase on last
year and a record for South Port.

“This is an excellent result, taking into consideration the decrease in cargo
volumes,” said South Port Chair Rex Chapman.

The Board is pleased to confirm a consistent second-half dividend of 19.5 cents
per share. In addition to the 7.5 cents per share interim dividend, this takes the full-
year dividend to 27.0 cents per share (FY22 – 27.0 cents). Full imputation credits will
be attached to all distributions.

The dividend payment represents a gross return of 5.1% (net yield 3.6%), based on
a share price of $7.43 as at 30 June 2023. A dividend payout ratio of 60% results for
2023 (using reported NPAT) and equates to 59% of free cash flow.

Earnings per share were 44.6 cents per share (FY22: 48.9 cps).

Chief executive Nigel Gear noted that trade results have been mixed in the
second half.

“A number of bulk cargo volumes were down, led by decreases in fertiliser, stock
food, and woodchip volumes imported and exported through South Port.”

These decreases were balanced out by a 9% increase in logs, at 720,000 tonnes
(2022 – 659,000 tonnes).

Container volumes handled at Bluff totalled 41,700 TEU (FY22: 44,000 TEU). This
partly reflects the continued disruption to calls by Mediterranean Shipping
Company’s “Capricorn” container service with 38 calls recorded for FY23 (FY22:
35 calls). This is still significantly down from pre-COVID levels of 52 calls per annum.

Overall, this has resulted in a 2.0% decrease in cargoes being shipped through the
Port at 3,480,000 tonnes (2022 – 3,550,000 tonnes).

The marine division has had a productive year, with a 14% increase in activity at
349 vessel calls for the Port (2022 – 305 calls). This was reflected in a 26% increase
in small vessels, and an 11% increase in large vessels calling at Bluff.

Stage one of Mercury Energy’s Kaiwera Downs wind farm, 10 turbines equivalent
to an output of 40MW, was recently discharged at the Port. The equipment was
stored on the Island Harbour before being transported to the site over a period of
six weeks. A decision on the second stage is expected in the coming 12 months.

Contact Energy’s proposed development of a Southland wind farm east of
Wyndham was accepted for fast-track consenting process and if consent is
granted, has the potential to produce up to 300MW from 50 turbines.

Infrastructure

Several important infrastructure projects were completed during the year.

• A four-year project to install impressed current cathodic protection (ICCP)
on the Island Harbour access bridge has now been completed.

• Construction of the Town Wharf fuel berth accessway, pipeline corridor,
and discharge platform has now also been completed and was officially
opened in November 2022.

• Development of 17,000m2 log yard hardstand at “South Rail’ was
completed and opened in October 2022, improving operations, and
creating better environmental outcomes.

On 31 August 2022, South Port was granted resource consent by Environment
Southland for project Kia Whakaū. The removal of fragmented rock to achieve a
draft of 9.7m CD in the harbour entrance channel is almost completed.

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.

Outlook

“There is uncertainty over a number of cargoes in the current year,” said Mr
Chapman.

“The log market and farming sector are both going through a difficult period due
to lower export prices and high interest rates. This is likely to impact log exports and
expenditure on the farm, which will have a flow-on effect for the use of fertiliser
and stock feed.”

In the coming twelve months, NZAS is expected to decide on the future of their
operation past December 2024. NZAS represents 20% of South Port’s NPAT and 30%
of the cargo base.

Based on all the factors currently known, South Port estimates that earnings for
FY2024 will be in the range of $11.70 - $12.30 million (2023 - $11.71 million).

In the absence of unforeseen circumstances, earnings within this range should
allow the current level of dividend payment to be maintained.


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