South Port NZ Limited - Interim Report to 31 December 2024

Interim Report for the six month period ended 31 December 2024
MOVING FORWARD

Interim Report
FINANCIAL PERFORMANCE
South Port has achieved a substantially improved financial
performance for the first half of the 2025 financial year, driven
by increased volumes across the majority of South Port’s key
commodities.
In the agricultural sector, a particularly wet spring affected grass
growth which led to an increase of supplementary feed imports for
the dairy industry. The Company also noted a rebound in fertiliser
import volumes coming off a particularly low point of activity in
FY24.
There were positive signs in the forestry sector with both logs and
woodchips showing signs of recovery in 1H25.
The only cargo category that was negatively affected to any
great extent was related to the New Zealand Aluminium Smelter
(NZAS). As widely reported in 2024, NZAS temporarily reduced its
electricity usage by 185 megawatts beginning 9 August 2024 due
to a demand response call from Meridian Energy. This led to the
closure of a potline at NZAS, thereby reducing both the imports of
raw materials and exports of finished aluminium. NZAS is expected
to return to full production by April 2025.
These market conditions have been reflected in South Port’s net
profit after tax (NPAT) for the first six months of FY25 at $5.7 million
(1H24 $3.0 million), substantially better than budgeted.
2

›
Vessels containing bulk imports for the agricultural sector
and NZAS are bringing in greater payloads than were
previously achievable.
›
More vessels are now able to move on both high and low
tides due to the increase in draft, when previously only high
tide was an option.
These benefits are pleasing to see and there is an expectation
that other cargo providers will look to utilise the increased draft as
opportunities are identified.
Pilot Vessel – Murihiku
The back-up pilot vessel MV Murihiku is currently undergoing
upgrades to meet New Zealand maritime regulations. This work
is expected to be finished in early February, ready for further sea
trials and an expectation to be in service later in February.
INFRASTRUCTURE
The Company has recently finished an upgrade to the western
tip of the Island Harbour. This upgrade was primarily to seal
a 2-hectare area providing flexibility for the storage of future
wind farm equipment expected to come through Bluff and as an
overflow option for other customers of the Port.
Wind Farm Opportunities
Stage two of Mercury Energy’s Kaiwera Downs wind farm, 15km
east of Gore, is on target to be imported through the Port in late
2025, increasing the capacity from 43 MW to 198 MW. This will
entail 36 turbines and associated equipment.
Contact Energy’s planned 300MW wind farm at Slopedown,
lodged under the COVID-19 Recovery (Fast-track Consenting)
Act 2020 is currently being considered by the expert consenting
panel, appointed by the Minister for the Environment, with a
decision expected in March.
CARGO
Total cargo activity was 1,691,000 tonnes compared with
1,488,000 tonnes in the prior year’s interim period. This represents
an increase in cargo flows of 203,000 tonnes or 13.6%. Increased
tonnages in comparison to the prior half year were logs (+31,000 t),
fertiliser (+41,000 t), woodchips (+59,000 t), and stock food
(+143,000 t). Cargoes to be negatively affected were alumina
(-53,000 t) and aluminium (-34,000 t), both of which were related
to the temporary closure of a potline at NZAS.
131 large vessel calls represented an increase of 11% (1H24 - 118
calls), a direct reflection of the increased bulk cargo flows through
the Port. Container volumes were similar with 20,600 twenty-foot
equivalent unit (TEU) handled through the terminal (1H24 -
21,000 TEU). These volumes however were handled on fewer
container vessels, 13 in 1H25 (17 in 1H24).
OPERATIONAL EVENTS
Marine Activity
In October 2024 the Company declared a 10.7m high tide draft, the
result of successfully executing project Kia Whakaū to deepen the
entrance channel, swinging basin and berth pockets.
The strategy behind project Kia Whakaū, to increase efficiencies
at the Port and to optimise the supply chain, is a direct reflection of
the Company’s purpose to facilitate the best logistics solutions for
the region. The benefits of achieving this important milestone are
already being realised at the Port as follows:
›
Several woodchip vessels have called in Bluff to load in
excess of 40,000 MT, a one-port call in New Zealand for
delivery to market destinations in Asia (previously required a
two-port call in New Zealand before heading to market).
›
The MSC Wallaby Service immediately utilised the increase
in draft to load and discharge additional containers per call.
3

P W Cory-Wright
Chair
N G Gear
Chief Executive
CLIMATE-RELATED DISCLOSURES
In 2024 South Port produced its first climate-related disclosures
under the new Aotearoa New Zealand Climate Standards.
After consultation, the External Reporting Board (XRB) has
approved a one-year extension to the adoption of provisions for
three of its four climate assurance proposals. These include the
reporting of scope 3 emissions, reporting the anticipated financial
impacts of climate-related risks and opportunities and assurance
of scope 3 emissions.
South Port plans to adopt transition planning for the coming
reporting period.
OUTLOOK
Although global events continue to create some uncertainty we
are seeing signs of recovery in the export markets.
The significant increase in the farm gate milk price to the range of
$9.50 to $10.50 per kg of milk solids, which will be a new record,
is an excellent result for the dairy industry and especially the
Southland region. Noting that agricultural imports and exports
represent one third of South Port’s cargo base, this is also a
positive sign for the Port.
There are signs of recovery in the forestry industry with increased
volumes of logs and woodchips being exported through the Port
and the potential for more log volumes to be exported through to
India.
The Company has invested capital in recent years to upgrade
storage areas on the Island Harbour to provide flexibility for future
growth opportunities.
We will continue to look at opportunities to upgrade our
infrastructure to ensure that we can service additional
cargoes that will become available in the future as a result of
the deepening of our entrance channel, including wind farm
developments and open ocean aquaculture projects that are
currently lodged in the Government’s fast track consenting
process.
Based on all known factors at the date of releasing its 2025 interim
result, South Port estimates that its full year earnings should be
above the upper end of the previous range of $9.3 million to
$10.3 million indicated at the Annual Shareholders Meeting in
October 2024.
DIVIDEND
The Directors have declared a fully imputed interim dividend of
7.50 cents per share (2024 – 7.50 cents) payable on 7 March
2025.
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 29,566 25,475 56,128
Total operating expenses (16,125) (16,235) (33,187)
Operating profit before
administrative and 13,441 9,240 22,941
finance costs
Administrative expenses (3,506) (3,227) (6,615)
Operating profit before
financing costs 9,935 6,013 16,326

Financial income 22 33 58
Financial expenses (1,855) (1,793) (3,016)

Net financing costs (1,833) (1,760) (2,958)
Other income – 36 65
Surplus before income tax 8,102 4,289 13,433
Income tax (2,344) (1,256) (6,057)
Net surplus after income tax 5,758 3,033 7,376
Other comprehensive income – – –

Total comprehensive
surplus/(loss) after income tax 5,758 3,033 7,376
Basic earnings per share $0.219 $0.116 $0.281
Diluted earnings per share $0.219 $0.116 $0.281
SIX MONTH PERIOD ENDED
31 DECEMBER 2024
Cash flows from operating
(note 6) 7,039 876 12,786
Cash flows from investing (3,479) (8,706) (10,080)
Cash flows from financing (2,614) 8,336 (1,431)
946 506 1,275
Unaudited
31/12
2023
$000’s
Unaudited
31/12
2024
$000’s
Audited
Year to
30/06/24
$000’s
Unaudited
31/12
2023
$000’s
Unaudited
31/12
2024
$000’s
Audited
Year to
30/06/24
$000’s
STATEMENT OF FINANCIAL POSITION
TOTAL EQUITY 60,922 57,829 60,232
Non-Current Assets
Property, plant & equipment 93,660 92,550 91,876
Right-of-use assets 191 282 239
Deferred tax asset 57 1,130 –
Financial assets – 173 321
Total non-current assets 93,908 94,135 92,436
Current Assets
Cash and cash equivalents 3,255 1,541 2,310
Trade and other receivables 11,426 10,514 8,220
Financial assets 63 451 398

Total current assets 14,744 12,506 10,928
Total assets 108,652 106,641 103,364
Non-Current Liabilities
Employee entitlements 60 63 47
Loans and borrowings 38,304 43,500 35,750
Deferred tax liability 1,042 – 1,097
Financial liabilities 88 – –
Lease liabilities 108 220 163
Total non-current liabilities 39,602 43,783 37,057
Current Liabilities
Trade and other payables 5,305 3,588 4,036
Employee entitlements 1,611 1,946 1,451
Provision for taxation 1,103 (597) 482
Lease liabilities 109 92 106

Total current liabilities 8,128 5,029 6,075

Total liabilities 47,730 48,812 43,132
TOTAL NET ASSETS 60,922 57,829 60,232

Net asset backing per share $2.32 $2.20 $2.30
Unaudited
31/12
2023
$000’s
Unaudited
31/12
2024
$000’s
Audited
Year to
30/06/24
$000’s
NET INCREASE/(DECREASE)
IN CASH
SIX MONTH PERIOD ENDED
31 DECEMBER 2024
AS AT 31 DECEMBER 2024
STATEMENT OF CASH FLOWS
5

01 ACTIVITIES OF SOUTH PORT GROUP ..............................
The Group is primarily involved in providing and managing port
and warehousing services.
02 ACCOUNTING POLICIES ...................................................
The Parent Company 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
IFRS Accounting Standards (NZ IFRS) and other applicable
Financial Reporting Standards, as appropriate for profit
orientated entities. These financial statements comply
with IFRS Accounting 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.
The financial statements were approved by the Board of
Directors on 14 February 2025.
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.
Notes to the Financial
Statements
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2024
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 60,232 59,903 59,903
Profit/(loss) after income tax 5,758 3,033 7,376
Other comprehensive income – – –
Total comprehensive surplus 5,758 3,033 7,376
Equity settled share-based 48 9 36
payment accrual
Dividends paid during the period (5,116) (5,116) (7,083)
Total equity at end of the period 60,922 57,829 60,232
05 STATEMENT OF CHANGES IN EQUITY ......................
Surplus after taxation 5,758 3,033 7,376
Add/(less) items classified
as investing/financing activities – – –
Add/(less) non-cash items 3,137 2,981 7,586
Add/(less) movement in working
capital (1,856) (5,138) (2,176)

7,039 876 12,786

06 NET CASH FLOW FROM OPERATING ACTIVITIES ....
DIRECTORS
Philip Cory-Wright
Chair
Cassandra Crowley
Nicola Greer
Michelle Henderson
Clare Kearney
John Schol
CORPORATE
EXECUTIVES
Nigel Gear
Chief Executive Officer
Geoff Finnerty
Port General Manager
Lara Stevens
Chief Financial Officer
Jamie May
Commercial Manager
Hayden Mikkelsen
Container Operations Manager
Frank O’Boyle
Infrastructure and
Environmental Manager
Helen Young
People and Safety Manager
SIX MONTH PERIOD ENDED
31 DECEMBER 2024
Unaudited
31/12
2023
$000’s
Unaudited
31/12
2024
$000’s
Audited
Year to
30/06/24
$000’s
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
2024. This customer contributed $4.45 million for the six
months ended 31 December 2024 (2023: $4.38 million).
7

Island Harbour, PO Box 1,
Bluff 9842, New Zealand
+64 3 212 8159
reception@southport.co.nz
southport.co.nz
  South Port NZ
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