Soft economy slows South Port in FY24

Distribution Notice




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 SPN
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 25/10/2024
Ex-Date (one business day before the
Record Date)
24/10/2024
Payment date (and allotment date for
DRP)
08/11/2024
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
Partial imputation

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.

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

23/08/2024






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

---

23 August 2024
NZX Announcement / Media Release
SOUTH PORT NEW ZEALAND LIMITED
FULL YEAR 2024 RESULTS

Soft economy slows South Port in FY24
Against the backdrop of very subdued trading conditions, South Port welcomed two major
developments in FY24 that will contribute to financial stability and business growth in the
longer term.
The commitment by New Zealand Aluminium Smelter (NZAS) to a 20-year electricity
agreement will underscore a significant segment of the port’s annual revenue. Completion of
project Kia Whakaū, the dredging of the Bluff Harbour, will position the port for ongoing trade
growth and larger vessels.
“It is particularly encouraging that these positive events reaffirm the potential for our regional
port envisaged by local government and private investors when South Port listed on the New
Zealand Stock Exchange 30 years ago this year,” said Chair, Philip Cory-Wright.
“The NZAS agreement will provide ongoing stability for a third of our cargo volume, enabling
the smelter, the port, and the community to plan and re-invest with confidence,” says Mr Cory-
Wright.
Following recent dredging of Bluff Harbour, the new draft of 10.7m, once formally “declared,”
will provide an invaluable extra metre of draft, enabling larger ships to bring their supply chain
efficiencies to South Port.
“The opportunity for South Port and the region now is to take full advantage of the outcome,”
said Mr Cory-Wright.
Throughout FY24 South Port faced challenging market conditions across all its major cargo
categories, particularly forestry and agriculture.
In the year to 30 June 2024 South Port recorded revenue of $56.13M (2023 - $53.59M) and
recorded an after-tax profit of $7.38M (2023 - $11.71M). Earnings per share were 28.1 cents,
against 44.6 cents last year.
Consistent with other infrastructure companies, South Port’s result was also negatively
impacted by the Government’s recent decision to remove tax deductibility for depreciation on
commercial buildings.
This tax change resulted in a one-off deferred tax expense of $2.27M for the 2024 financial
year.
Normalised net profit after tax (NPAT), excluding one-offs, was $9.96M (2023 - $11.50M).
Net asset backing was $2.30 per share, up from $2.28 per share last year.

The Board has declared a final dividend of 19.5 cents, representing a full year dividend of 27.0
cents per share (2023 – 27.0 cents) amounting to $7.08M. Full imputation credits will be
attached to all distributions.
The dividend payment represents a gross return of 6.7% (net 4.8%), based on a share price
of $5.61 as at 30 June 2024.

Cargo Result
“The 2024 result reflected a 7.7% decrease in overall cargoes at 3,213,000 tonnes (2023 –
3,479,000 tonnes),” said Chief Executive Nigel Gear. “However, the year has had a stronger
finish, highlighted by a 24.5% increase in container volumes, the second highest on record at
51,900 TEU (2023 – 41,700 TEU), despite a similar number of calls (39 vs 38).”
Core bulk cargo volumes were down by 12.2% at 2,673,000 tonnes (2023 – 3,043,000
tonnes), reflecting decreases in logs, fertiliser, and woodchip volumes.
Subsequent to the completion of the dredging project in October 2023, South Port declared
an operating draft of 10.3m at high tide (up from 9.7m) as an interim step, whilst the Company
assesses the impact of handling deeper draft vessels.
The final step before we declare a new draft of 10.7m is the implementation of the NCOS
Dynamic Under Keel Clearance system, expected to be operational in this current quarter.
Initial benefits for customers include more cargo being loaded on vessels for export, reduction
in the number of vessel calls to the port and increased cargo loading efficiencies.
Many vessels now also have the opportunity to transit through the port on additional tides (low
and high), improving both the supply chain and berth utilisation at the port.

NZ Aluminium Smelter (NZAS)
A highlight of the year was the 31 May 2024 announcement that NZAS had secured electricity
supply contracts from Meridian Energy, Contact Energy and Mercury NZ for 20 years, out until
2044.
“This was a welcome announcement for both South Port and the Southland region, with the
aluminium smelter being a core business activity since 1971,” said Mr Gear.
NZAS represents approximately 20% of South Port’s NPAT, 30% of the total cargo volume
handled through the Port, 20% of bulk vessel calls, and 27% of containers.
The NZAS decision is expected to provide the catalyst for energy generation companies to
build renewable electricity generation in the Southland province.
Following the NZAS announcement, the second stage of the Kaiwera Downs wind farm has
been confirmed by Mercury NZ and others, including Contact Energy, are progressing their
wind farm projects.

Outlook
The agricultural and forestry-based sectors continue to face particularly challenging
conditions. These are expected to be reflected in the volumes of bulk cargo being handled
through the port.

“Demand in offshore markets remains subdued,” said Mr Cory-Wright. “Supply chains continue
to be disrupted, particularly around regions where conflict is present. These variables are out
of our control and are not expected to improve in the near future.”
However, the Company remains optimistic about future opportunities.
The NZAS extension is a major boost in providing consistency in vessel calls and base cargo
that can now be factored into future planning.
A large majority of the project cargo associated with wind farm development activity is
expected to be handled through the port in coming years, including Mercury NZ’s recently
confirmed Kaiwera Downs Stage Two project.
We are aware that there are applications to the Fast Track Advisory Group for aquaculture
projects in Murihiku including the Hananui ocean Salmon Farm, the Impact Marine land-based
Salmon Farm and the Kelp Blue ocean kelp farm.
The Company’s diversity of cargoes provides us with resilience and helps to smooth out
fluctuations in the market.
Based on all known factors at this time, South Port estimates that FY25 earnings will be in the
range of $9.3M to $10.3M.
On the assumption of a consistent earnings profile and in the absence of any unforeseen
circumstances, the Directors will seek to, at least, maintain the current level of dividend
payment.

For further information contact:

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

Mr Philip Cory-Wright
Chair
South Port New Zealand Ltd
Mobile: 021 767 828
Email: philip@cory-wright.co.nz

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

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer South Port New Zealand Limited
Reporting Period 12 months to 30 June 2024
Previous Reporting Period 12 months to 30 June 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$56,251 4.2%
Total Revenue $56,251 4.2%
Net profit/(loss) from
continuing operations
$7,376 -37.0%
Total net profit/(loss) $7,376 -37.0%
Final Dividend
Amount per Quoted Equity
Security
$0.19500000
Imputed amount per Quoted
Equity Security
$0.07583333
Record Date 25/10/2024
Dividend Payment Date 08/11/2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.30 $2.28
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

23/08/2024

Audited financial statements accompany this announcement.

---

Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
GROUP
NOTEGROUP
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2024
Share-based
Payment Reserve
Retained EarningsTotal Equity
In Thousands of New Zealand Dollars
Balance 1 July 2022 9,418 — 45,856 55,274
Profit/(loss) after income tax — — 11,712 11,712
Total comprehensive income — — 11,712 11,712
Contributions by and distributions to owners
Dividends paid during the period — — (7,083) (7,083)
Balance as at 30 June 2023 9,418 — 50,485 59,903
Balance 1 July 2023 9,418 — 50,485 59,903
Profit/(loss) after income tax — — 7,376 7,376
Total comprehensive income — 7,376 7,376
Contributions by and distributions to owners
Equity settled share-based payment accrual 36 — 36
Dividends paid during the period — (7,083) (7,083)
Balance as at 30 June 2024 9,418 36 50,778 60,232
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2024
NOTE
In Thousands of New Zealand Dollars 2024 2023

Total operating revenues from port services 5 56,128 53,589
Total operating expenses 7 (33,187) (30,385)
Operating profit before administrative and finance costs 22,941 23,204
Administrative expenses (6,615) (5,341)
Operating profit before financing costs 16,326 17,863

Financial income 58 272
Financial expenses (3,016) (1,725)

Net financing costs 6 (2,958) (1,453)

Other income 5 65 104
Surplus before income tax 13,433 16,514

Income tax 10 (6,057) (4,802)

Net surplus after income tax 7,376 11,712

Other comprehensive income — —
Total other comprehensive surplus/(loss) after income tax — —
Total comprehensive surplus/(loss) after income tax 7,376 11,712

Basic earnings per share 17 $0.281 $0.446
Diluted earnings per share 17 $0.281 $0.446
Share Capital
15
24
15

Consolidated Statement of Financial Position
OF SOUTH PORT NEW ZEALAND LIMITED AS AT 30 JUNE 2024
On behalf of the Board
23 August 2024
The accompanying notes form part of these financial statements
In Thousands of New Zealand Dollars 2024 2023
TOTAL EQUITY 60,232 59,903
NON-CURRENT ASSETS
Property, plant and equipment 11 91,876 87,727
Right-of-use assets 25 239 330
Deferred tax asset 10(d) — 1,106
Financial assets 14 321 658
Total non-current assets 92,436 89,821
CURRENT ASSETS
Cash and cash equivalents 12 2,310 1,035
Trade receivables and prepayments 13 8,220 6,509
Financial assets 14 398 541
Total current assets 10,928 8,085

Total assets 103,364 97,906
NON-CURRENT LIABILITIES
Employee entitlements 19 47 59
Loans and borrowings 18 35,750 25,000
Deferred tax liability 10(d) 1,097 —
Lease liabilities 25 163 262
Total non-current liabilities 37,057 25,321
CURRENT LIABILITIES
Loans and borrowings 18 — 5,000
Trade and other payables 20 4,036 4,105
Employee entitlements 19 1,451 1,897
Provision for taxation 10(c) 482 1,582
Lease liabilities 25 106 98
Total current liabilities 6,075 12,682

Total liabilities 43,132 38,003
TOTAL NET ASSETS 60,232 59,903
Net asset backing per share 17 $2.30 $2.28
NOTEGROUP
ChairChair, Audit and Risk Committee
P.79
› South Port
Annual Report 2024
› Section 07
Financials

The accompanying notes form part of these financial statements
OF SOUTH PORT NEW ZEALAND LIMITED FOR THE YEAR ENDED 30 JUNE 2024
In Thousands of New Zealand Dollars 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided by (applied to):
Receipts from customers 54,410 54,086
Payments to suppliers and employees (35,040) (30,460)
Interest received 58 26
Interest paid (2,483) (1,717)
Income taxes paid (4,954) (5,205)
Net goods and services tax paid 795 (282)
Net cash flow from operating activities 26 12,786 16,448
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided by (applied to):
Proceeds from disposal of non-current PPE 203 330
Acquisition of other non-current PPE (10,283) (14,370)

Net cash used in investing activities (10,080) (14,040)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided by (applied to):
Dividend paid (7,083) (7,083)
Drawdown/(repayment) of borrowings 5,750 4,500
Lease liabilities paid (98) (93)
Net cash used in financing activities (1,431) (2,676)
NET INCREASE (DECREASE) IN CASH HELD 1,275 (268)
Add cash at beginning of year 1,035 1,303
TOTAL CASH AT END OF YEAR 12 2,310 1,035
NOTEGROUP
Consolidated Statement of Cash Flows