Sharechat Logo

South Port beats guidance, earnings in line with 2018 record

Monday 22nd July 2019

Text too small?

South Port New Zealand says it will report flat annual earnings, beating guidance for a 10 percent decline, as strong cargo flows late in the season gave profit an extra push. 

The Bluff-based company said net profit in 12 months ended June 30 was similar to the record $9.66 million reported a year earlier. The country's southern-most port had previously expected earnings of between $8.6 million and $8.9 million due to the cost of updating assets near the end of their life. 

South Port today said "strong late season cargo flows" underpinned earnings, and it will report "a better than expected result". 

About a third of the port's cargo comes from the Tiwai Point aluminium smelter, which formally re-opened its fourth potline in December after a six-year break. 

Environment Southland owns about 66 percent of the company. In April, the council's South Port sub-committee was told the company has a positive outlook despite the lower guidance, due to the additional cargoes from Mataura Valley Milk and an MDF product, the resumption of smelter's fourth potline, and the return of frozen product from Alliance Group. 

The port operator has previously said it will maintain its dividend at 26 cents per share on the lower earnings guidance. 

The shares last traded at $6.80 and have increased 3 percent so far this year, lagging behind the 19 percent increase on the S&P/NZX All Index over the same period. 


NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Supplements, skincare firm poised for reverse listing
NZX, EEX eye carbon auction opportunity
A2 Milk boss steps down, shares fall 7.7%
NZX says operating earnings will reach top of guidance
NZ dollar consolidates weekly gain of more than a US cent
NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress

IRG See IRG research reports