South Port has attributed an improved annual result to a diversified trade mix, despite supply chain disruption to containerised trade and an ongoing fluctuation in the log trade.
The company has posted a net profit after tax of $12.83 million, up 19.7% on the previous year, and operating revenue of $48.58 million, a 2.7% increase
In a statement on Thursday, chairman Rex Chapman said it had been especially pleasing to see the high levels of resilience shown in the face of operational challenges.
Bulk cargoes supporting the NZAS aluminium smelter and the southern region’s agricultural sector have shown growth.
Volatility in shipping movements was reflected in a 24% reduction in calls at Bluff by container vessels.
While overall vessel calls dropped back to 305 calls, compared with 331 in FY2021, South Port experienced an increase in bulk cargo trade.
"Greater volumes were handled on fewer vessel exchanges at Bluff, with the FY2022 results positively influenced by a 2.8% increase in overall cargo tonnage at 3,554,000 tonnes, compared with 3,454,000 tonnes in the previous year," Mr Chapman said.
The board confirmed a final dividend of 19.5c which brought the full year dividend to 27c per share.
South Port estimated that FY2023 earnings would be down by 12.9% on the FY2022 result.
However, after removing the one-off items that occurred this year, underlying profit would be consistent with FY2022 at about $11.2 million.
During the past 12 months, planned expenditure on port infrastructure has decreased by 35% to $2.8 million.
The Island Harbour access bridge upgrade project would now be finished early into FY2023, well in advance of initial expectations.
The construction of the Town Wharf fuel berth accessway, pipeline corridor and discharge platform had been completed, providing security for the fuel import sector and the other berth users for a minimum of the next 50 years.
In the past 24 months, significant work had been carried out in the container terminal to service this industry, including a new reefer tower, expansion of the storage footprint and the construction of a new container wash area.
"The port has struggled with sufficient capacity to store containers and, to provide clear areas to safely repair containers in the depot operation.
‘‘This expansion will provide breathing space for the coming 12 months," Mr Gear said.
Cold store facilities provide refrigerated storage for meat and fish processing companies in Bluff and the surrounding region. That operation underwent a significant upgrade during the past 12 months.
The company was working through the consent process to deepen the port channel, swinging basin and berth pockets from 9.7m to 10.7m and was now waiting for a decision, which is expected later this year.
