AMENDED – South Port – Interim Report to 31 December 2023

Financial Performance
Reduced volumes across the majority of South Port’s key
commodities and inflationary pressure on costs have negatively
impacted South Port’s financial performance in the first half of
the financial year. Both the agricultural and forestry sectors have
been under significant pressure for a number of months due
to poor market conditions, which is negatively reflected in the
majority of our import and export bulk cargoes.
The deterioration in trade is common across the port sector and
unfortunately South Port is not immune.
These market conditions have been reflected in South Port’s net
profit after tax (NPAT) for the first six months of FY2024 at
$3.0 million (FY2023 $5.2 million). The factors influencing this
interim result, as briefly discussed above, include:
• Forestry exports, logs and woodchips, faced reduced
demand in both China and Japan.
• Imports of agricultural inputs, fertiliser and stock food, were
back and are expected to remain down for the remainder of
the financial year due to depressed sheep and beef prices.
• Marine calls were similarly impacted by reduced volumes
being shipped through the Port.
• Inflationary pressures on labour and materials costs have
increased substantially.
• Insurance costs have significantly increased.
• Increased financing costs due to an upwards movement in
interest rates and additional debt on the balance sheet.
Cargo
Total cargo activity was 1,488,000 tonnes compared with 1,732,000
tonnes in the prior year’s interim period. This represents a
decrease in cargo flows of 244,000 tonnes or 14%. Increases were
registered in cement (+14,000 t) and timber (+17,000 t), however
other cargoes were negatively impacted with woodchips
(-72,000 t), logs (-68,000 t), alumina (-43,000 t), stock food
(-39,000 t) and fertiliser (-37,000 t) down in comparison to the
prior half year.
108 large vessel calls were registered (FY2023, 139 calls), a direct
reflection of the reduced cargo flows through the Port.
Container volumes are showing some signs of recovery with
21,000 Twenty-foot equivalent unit (TEU) handled through the
terminal (FY2023, 18,000 TEU).
Operational Events
Cold Storage Operation
The cold store operation has performed well. Increased volumes
of meat products being handled, longer dwell times and reduced
overheads compared with the same period last year has seen an
improved result for this business unit.
Syncrolift – Dry Dock
After a major maintenance programme in FY23, the syncrolift has
shown a marked improvement in FY24. Increased vessel dockings
and reduced maintenance costs have also seen a better result for
this operation.
Climate-Related Disclosures
From the 2024 reporting period it will be mandatory for South Port
to produce climate-related statements according to disclosure
requirements in the External Reporting Board (XRB) standards.
South Port is progressing towards meeting these requirements, to
be published in this year’s annual report.
Interim Report
2

Initiatives
Kia Whakaū Project
The Kia Whakaū project to dredge and remove seabed materials
to 9.7m chart datum (CD) in the harbour entrance channel was
successfully completed and celebrated with a formal opening on
30 October 2023.
The Company is taking a staged approach to the new draft by
declaring an interim operating draft of 10.3m at high tide to assess
the handling of deeper draft vessels before moving to the full
10.7m.
Green Ammonia
Meridian Energy, with the support of Ngāi Tahu, is continuing to
work with Woodside Energy and Mitsui towards making a final
investment decision in 2025 for the development of a world-class
hydrogen and ammonia facility in Southland.
South Port is assisting these parties with port and shipping-
related enquiries in relation to the export of green ammonia.
Cruise Vessels
It has been a busy cruise period in the south. There have been
a number of cruise vessels transiting through the Sounds in
Fiordland with a record number of vessel calls then making a call
into Bluff.
Wind Farm Opportunities
There are a number of wind farm opportunities in Southland
at differing stages of development. It is anticipated they will
accelerate once the NZAS smelter’s future is resolved. The most
advanced are Mercury Energy’s Kaiwera Downs and Contact
Energy’s Wyndham proposed wind farms. Stage one of Mercury
Energy’s 240MW Kaiwera Downs wind farm, 15km east of Gore,
was completed and officially opened on 20 November 2023.
Shipments for the second stage of the development, although not
confirmed, are expected to begin arriving in early 2025.
A fast-track resource consent application for Contact Energy’s
Southland Wind Farm project, was lodged with the Environmental
Protection Authority on 22 December 2023.
If the consent is approved, it is hoped that construction would
begin in 2025 with the wind farm to be fully operational by 2027.
Community
Port Open Day
The Port open day was held on Sunday 1 October 2023. This was
a good opportunity to open the gates and show off our operations
to the community. The event was quickly oversubscribed, and the
weather played its part to make this another successful event.
3

P CORY-WRIGHT
Chair
N G GEAR
Chief Executive
Outlook
Global events continue to create uncertainty and provide
challenges to our business operations.
The wars in both Ukraine and the Middle East are continuing to
impact marketplaces which has a flow-on impact to commodity
prices and volumes handled through the Port. The container
supply chain is facing additional challenges with the war in the
Middle East escalating into the Gulf of Aden and the Red Sea
preventing shipping lines gaining access to the Suez Canal,
resulting in longer transit times to market.
There are also several elections taking place in key markets that
New Zealand trades with that will create additional uncertainty as
we progress through the 2024 calendar year.
The Company has invested significant capital in recent years to
upgrade the Island Harbour and develop our infrastructure for
future growth opportunities.
The deepening of our entrance channel is especially important as
it will allow us to take greater payloads, improve the supply chain
and provide safer transit for vessels calling at the Port.
There are a number of opportunities on the horizon, and we are
now in the position to take advantage of these as they arise.
In February 2024, Fonterra upgraded its dairy payout forecast.
In addition, good progress appears to have been made in
negotiations with Rio Tinto over long term supply arrangements
for the NZAS aluminium smelter. The Government has also
announced a new fast track consenting process which may assist
projects such as Ngāi Tahu’s proposed Hananui open ocean
aquaculture farm at Rakiura (Stewart Island).
These are unlikely to have material effects on South Port this
financial year but do provide some reasons for optimism that the
current downturn will be short lived.
Based on all known factors at the date of releasing its 2024
interim result, South Port estimates that its full year earnings
should fall in the range of $7.3 million to $8.0 million (FY2023 -
$11.7 million).
Dividend
Despite the expectation of reduced full year earnings, the
Directors have declared a fully imputed interim dividend of 7.50
cents per share (2023 – 7.50 cents) payable on 12 March 2024.
The Board will consider the Company’s financial year end result,
market conditions and trading outlook before determining the
final distribution to shareholders.
4

Financial Statements
Statement of Comprehensive Income
Total operating revenues
from Port services 25,475 24,939 53,589
Total operating expenses (16,235) (14,731) (30,385)
Operating profit before
administrative and 9,240 10,208 23,204
finance costs
Administrative expenses (3,227) (2,690) (5,341)
Operating profit before
financing costs 6,013 7,518 17,863

Financial income 33 368 272
Financial expenses (1,793) (760) (1,725)

Net financing costs (1,760) (392) (1,453)
Other income 36 95 104
Surplus before income tax 4,289 7,221 16,514
Income tax (1,256) (2,068) (4,802)
Net surplus after income tax 3,033 5,153 11,712
Other comprehensive income – – –
Total comprehensive
surplus/(loss) after income tax 3,033 5,153 11,712
Basic earnings per share $0.116 $0.196 $0.446
Statement of Cash Flows
SIX MONTH PERIOD ENDED
31 DECEMBER 2023
Cash flows from operating
(note 7) 876 5,434 16,448
Cash flows from investing (8,706) (9,508) (14,040)
Cash flows from financing 8,336 4,838 (2,676)
506 764 (268)
31/12
2022
$000’s
31/12
2023
$000’s
Year to
30/06/23
$000’s
31/12
2022
$000’s
31/12
2023
$000’s
Year to
30/06/23
$000’s
UnauditedUnauditedAudited
UnauditedUnauditedAudited
Statement of Financial Position
AS AT 31 DECEMBER 2023
TOTAL EQUITY 57,829 55,311 59,903
Non-Current Assets
Property, plant & equipment 92,550 84,184 87,727
Right-of-use assets 282 379 330
Deferred tax asset 1,130 1,189 1,106
Financial assets 173 870 658
Total non-current assets 94,135 86,622 89,821
Current Assets
Cash and cash equivalents 1,541 2,067 1,035
Trade and other receivables 10,514 8,868 6,509
Financial assets 451 441 541

Total current assets 12,506 11,376 8,085
Total assets 106,641 97,998 97,906
Non-Current Liabilities
Employee entitlements 63 56 59
Loans and borrowings 43,500 35,500 25,000
Lease liabilities 220 320 262
Total non-current liabilities 43,783 35,876 25,321
Current Liabilities
Loans and borrowings – – 5,000
Trade and other payables 3,588 4,358 4,105
Employee entitlements 1,946 1,874 1,897
Provision for taxation (597) 492 1,582
Lease liabilities 92 87 98

Total current liabilities 5,029 6,811 12,682

Total liabilities 48,812 42,687 38,003
TOTAL NET ASSETS 57,829 55,311 59,903

Net asset backing per share $2.20 $2.11 $2.28
31/12
2022
$000’s
31/12
2023
$000’s
Year to
30/06/23
$000’s
UnauditedUnauditedAudited
NET INCREASE/(DECREASE)
IN CASH
SIX MONTH PERIOD ENDED
31 DECEMBER 2023
5

Notes to the Financial Statements
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2023
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 Employee Share Rights
The Group adopted a performance share rights plan during
this period. The plan grants participants a right to receive
ordinary shares in South Port NZ for no consideration if the
vesting conditions are met. Vesting is subject to certain
performance conditions measured over a three-year period and
the participants remaining employed by the Group during that
period.
The plan is an equity-settled share-based payment arrangement
for accounting purposes. The fair value of the rights is
expensed on a straight-line basis over the vesting period with a
corresponding increase in equity.
30,928 rights were granted during the period, having an
estimated fair value of $142,000, with $9,000 of this being
expensed during the period ended 31 December 2023.
04 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.
6

Parent Company
South Port New Zealand Limited
Subsidiary
Awarua Holdings Limited
Group
Companies
Net cash provided by operating
activities
Total equity at beginning
of the period 59,903 55,274 55,274
Profit/(loss) after income tax 3,033 5,153 11,712
Other comprehensive income – – –
Total comprehensive surplus 3,033 5,153 11,712
Share based payment reserve 9 – –
Distributions to shareholders (5,116) (5,116) (7,083)
Total equity at end of the period 57,829 55,311 59,903
31/12
2022
$000’s
Year to
30/06/23
$000’s
31/12
2023
$000’s
Unaudited
06 Statement of Changes In Equity
Unaudited
Surplus after taxation 3,033 5,153 11,712
Add/(less) items classified
as investing/financing activities – – –
Add/(less) non-cash items 2,981 1,839 4,514
Add/(less) movement in working
capital (5,138) (1,558) 222

876 5,434 16,448

07 Net Cash Flow from Operating Activities
Audited
Directors
Philip Cory-Wright
Chair
Cassandra Crowley
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
05 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 2023. This
customer contributed $4.38 million for the six months ended
31 December 2023 (2022: $4.14 million).
SIX MONTH PERIOD ENDED
31 DECEMBER 2023
7