WELLINGTON: Bluff’s South Port has booked record cargo volumes during the past year, underpinning an almost 16% increase to after-tax profit – topping to a record $7.74million.
While hitting multiple records during the past year’s trading to June, South Port New Zealand (SPN) is cautious about the year ahead, with economic ”headwinds” prompting it to forecast a lower after-tax profit next year.
During the year, SPN saw revenue from port and warehousing operations increase 11% from $31.3million to $34.6million, while earnings before interest and tax rose 20%, from $9.7million to $11.7million.
Southland has been in a state of flux recently over the impact of the dairying downturn and effects on the wider economy, which includes imports and some exports.
Also, Tiwai Point aluminium’s future, and its impact on 3200 direct and indirect jobs, was under scrutiny, but earlier this month had a reprieve, and will remain open until at least early 2017. Total cargo was up 5% on a year ago, by 142,000 tonnes to 2.8million tonnes, largely driven by fertiliser, stock food and dairy-related product.
SPN chief executive Mark O’Connor said the overall improvement in tonnage across the wharves was ”somewhat surprising” when contrasted against the challenging conditions for a range of industries. ”Dairy and forestry exporters in particular have had to manage sizeable declines in global prices and a subdued outlook,” he said.
SPN chairman Rex Chapman said despite customers’ stable cargo projections for the coming year, South Port was ”taking a more cautious view”, predicting a lower level of tax-paid profit for the 2016 financial year.
Mr O’Connor said inbound stock food and molasses were again strong performers, setting a import record of about 220,000 tonnes, while higher-than-expected fertiliser use generated increased cargo totalling 430,000 tonnes. He also singled out the New Zealand Aluminium Smelter, saying its related cargo, and petroleum, were two other sizeable bulk product flows whose volumes were up on last year.
SPN took delivery of a second, new, $6.3million mobile container crane and a container-capable forklift, which was the single largest capital expenditure item in the company’s history. Container handling rose from 32,700 last year to a record 35,800 TEUs (twenty foot equivalent units). SPN also purchased Port of Tauranga’s old tug Te Matua for $2.5million.
