Southport ups dividend and profit

Thursday 10th February 2011

Southport New Zealand Ltd has increased its interim dividend after reporting a 66.8 % jump in profit and record cargo volumes.

The operator of the port at Bluff reported a net profit attributable to shareholders of $2.9 million in the six months to December 31, up 66% on the same period a year earlier. The profit from ordinary activities rose 70.3%. Revenue rose 12.6% to $11.79m.

The company is predicting full-year earnings in the range of $4.8m and $5.2m.

Shareholders will receive a dividend of 5.5 cents a share, up from five cents the previous year, on March 2. It will be paid to shareholders on the register on February 21.

Cargo volumes rose to 1.29 million tonnes from 984,000 tonnes in the previous interim period, which is an increase of 31% in volume terms.

"This tonnage level represents a record for the company in the first half of a financial year," chairman John Harrington said.

A higher level of export activity was "in stark contrast to a subdued domestic economy", he said.

The port handled more product from NZ Aluminium Smelters, as well as more logs, fertiliser and stock food.

"The lift in cargo is due primarily to strong log demand from China, higher-than-expected fertiliser application, as well as increased imports of supplementary stock food products," Harrington said.

The company is still holding out hope that the Great South Basin will be explored and that lignite resources in Southland will be developed.

The decision by the Exxon Mobil and Todd Energy consortium to relinquish their oil and gas exploration permit in the Great South Basin last year was disappointing but not surprising, Mr Harrington said.

An OMV-led consortium will decide by the middle of 2011 whether to proceed with an extensive exploration campaign

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