Sharechat Logo

South Port FY profit falls 4.3 percent on costs to cope with higher volumes

Thursday 23rd August 2012

Text too small?

South Port New Zealand, the nation's southern-most port company, posted a 4.3 percent drop in full-year profit on costs to cope with higher cargo volumes and increased insurance premiums.

Profit was $5.99 million in the 12 months ended June 30, from $6.26 million a year earlier, the Bluff-based company said in a statement. Sales rose 3.5 percent to $26 million. The port company experienced a 25 percent surge in cargo volumes in 2011, which had required more spending on workers, plant an infrastructure, it said.

"The costs of the additional resources and higher insurance premiums resulted in a 5 percent decline in operating profit," it said. Total cargo through the port was at a record level for a second year, it said. The shares last traded at $3.27 and have declined 4.1 percent this year.

Containerised cargo slipped to 32,500 TEU from 33,000. "Container shipping lines are entering business alliances and vessel sharing arrangements which are designed to reduce operating costs in what can only be described as a brutal freight market," chief executive Mark O'Connor said.

Log exports through the port fell by 27 percent and raw materials imported for Rio Tinto's aluminium smelter fell, reflecting a 15 percent decline in production capacity at the plant. A high exchange rate, low aluminium prices and uncertainty over the price of electricity drove the decline at the smelter, the port said.

The company will focus on cost containment in the current year, saying New Zealand isn't immune from global economic ills. It doesn't expect any profit growth in 2013. South Port will pay a final dividend of 14.5 cents a share, making 20 cents for the year, unchanged from 2011.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

POT Financial Results for the year to 30 June 2025
MOVE FY25 Results for the year ended 30 June 2025
BPG - Completion of Retail Offer
Comvita releases results for the year ended 30 June 2025
August 29th Morning Report
Air New Zealand announces 2025 financial result
August 28th Morning Report
VSL - 2025 date of Annual Meeting of shareholders
WIN - Winton announces FY25 Annual Results
Meridian Energy Limited 2025 Full Year Financial Results