Southern port gains from strong trading

By Phil Boeyen, ShareChat Business News Editor

Friday 8th February 2002

South Port's (NZSE: SPN) half-year result has been bolstered by a strong regional economy, with net profit jumping 65% for the six months ended December.

The Bluff-based port company says its half-year profit of $1.5 million compares with $910,000 for the previous period and reflects strong trading trends in both domestic and international markets. The result includes non-recurring net gains of $183,000 arising from a property asset disposal.

"The southern part of NZ has experienced growth levels that have not been seen for many decades," says South Port chairman John Harrington.

"Record production volumes and financial results have been recorded across a wide range of industries."

Revenue was $6.9 million, a rise of 19% on the previous interim period.

Mr Harrington says that the 2002 financial year has started extremely well and total cargo handled in the first half hit a record 1.083 million tonnes - the first time that the port has moved more than one million tonnes in a six month period.

"Increases occurred in almost all cargo categories. There were notable lifts in fertiliser, fuel and grain on the import side. In the export sector, positive gains were recorded for dairy products, gravel, stockfood, tallow and forest products," the company reports.

South Port says the strong levels of first half activity indicate that it should register more than 2 million tonnes of annual cargo for the year ended June.

The directors have declared a fully imputed interim dividend of 2.75cps, a slight increase on the previous interim dividend of 2.5 cents per share. Last November the port paid a special dividend of 11.5 cents per share when a $3 million distribution was made to shareholders.

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