The country's southern-most commercial port has kept its normalised profit for the first half of the year stable, despite an 8% drop in cargo volumes.
South Port has recorded a normalised interim profit of $1.67 million, down on slightly on 2009's result
The country’s southern-most commercial port has kept its normalised profit for the first half of the year stable, despite an 8% drop in cargo volumes.
South Port has recorded a normalised interim profit of $1.67 million, down on slightly on 2009’s result of $1.71 million.
Cargo volumes for the six months reached a total of 984,000 tonnes, down on the 1.07 million tonnes for the previous interim period.
South Port is now forecasting full year earnings to reach $3.5 million, down from the $4.12 million recorded in 2009, although this result was inflated by more than $800,000 in one-off gains and was well up on the 2008 result of $2.5 million.
Chairman John Harrington said the interim result was “a creditable result in the current economic conditions,” and said the trading outlook for the rest of the year looked more buoyant.
But he also warned that there was still no clear economic and trading pattern for international markets and it could take a further 12 - 18 months before complete confidence is restored to global markets.
Mr Harrington added that the New Zealand economy still had a “sense of fragility”, although the country was still more fortunate than a number of other locations around the world.
“Demand for dairy, meat and forestry goods is relatively strong and should continue to underpin a steady resurgence in export activity.”
Chief executive Mark O’Connor said the reduction in cargo was due primarily to a more cautious approach by the agricultural sector with lower fertiliser inputs being applied and less supplementary stock food being required.
“Notable import reductions were recorded for fertiliser raw material, sulphuric acid, molasses and stock food. “
Mr Harrington said while there were indications that a higher level of fertiliser application will occur in the autumn, a strong New Zealand dollar had prolonged the difficulties being experienced by other export industries such as fishing and manufactured goods.
He also warned that the outcome of the arbitration on a licence fee paid by New Zealand Aluminium Smelters could have a bearing on the final result
An unchanged fully imputed interim dividend of 4.50 cents per share has been declared and will be paid on March 3.
