A key stakeholder in Southland’s main port has gone behind closed doors to discuss a share sell-down — the same day it received a paper detailing the company’s record profits.

But Environment Southland, which owns 66% of South Port’s shares, has since confirmed no decision was made.

The council has been looking to reduce its stake in the Bluff port since at least 2024, when it consulted with the community on dropping ownership to 51%.

On Thursday, its investment committee entered a public excluded session where two papers relating to the port were discussed in private — South Port Share Sell Down Update and South Port Resolutions.

The council has since said it would continue to explore options for a possible partial sell-down, but no decision had been made.

“Any future decision would be based on a range of factors, including market conditions and whether a proposal could deliver an appropriate financial outcome for ratepayers,” council chairman Jeremy McPhail said.

“If the council is not satisfied that the benefits outweigh the costs or risks, it will retain its current shareholding.”

In July, council chief executive Stephen Hall announced investment and advisory group Jarden had been appointed to help with a possible sell-down, which he said would “diversify income and reduce investment risk”.

South Port was contacted by Local Democracy Reporting this week but did not wish to comment on the potential sell-down.

During the public section of Thursday’s council committee meeting, the paper South Port Update drew on details publicised by South Port last month, such as a record $16.1 million after-tax profit and cargo volumes hitting almost 4 million tonnes.

South Port identified a range of drivers for its strong result, including cargo growth, agricultural activity, better throughput from the aluminium smelter and cargo for a wind farm project.

“This result reflects the strength of the Southland economy, the efficiency of our diversified trade base, and the commitment, skill and care of our people,” South Port chair Philip Cory-Wright said in an August statement.

Looking ahead, the port expected trade volumes to remain similar to the last financial year but was aware of a possible slip due to the loss of cargo for the wind farm.

South Port also noted major changes within its ranks, with chief executive Nigel Gear departing in May after over 30 years with the company, more than eight of which were in the top role.

Mr Cory-Wright was also set to retire in October after 16 years as a director.

LDR is local body journalism co-funded by RNZ and NZ On Air.