South Port says annual profit beats guidance on stronger cargo flows

Thursday 2nd July 2015

South Port New Zealand said annual profit beat the top end of its guidance by about 7.1 percent after the Bluff port operator reported stronger cargo flows in the final quarter of the financial year.

Net profit was about $7.5 million in the 12 months ended June 30, ahead of the company's February forecast for earnings between $6.5 million and $7 million, the Bluff based company said in a statement.

The better than expected result was due to "stronger final quarter bulk cargo flows," and is subject to statutory audit over the next six weeks, it said.

South Port reported record cargo flows of 1.479 million tonnes in the first half of the financial year as increased farmer demand for fertiliser and stock food flowed on from the 2014 dairy season's record payout to farmers and on consistent log export and petrol import volumes.

The company had warned Fonterra Cooperative Group's downgrade to the forecast dairy payout would weigh on cargo flows in the second half.

South Port shares, of which the Southland Regional Council holds about 69 percent, were unchanged at $4.58, and have gained 16 percent this year.

BusinessDesk.co.nz

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