South Port New Zealand (SPN) H2 2024 earnings summary

Executive summary

• Net profit after tax fell 37% year-over-year to $7.38m, impacted by lower cargo volumes and a one-off $2.3m deferred tax expense due to legislative changes.

• Operating revenue rose 4.7% to $56.13m, but EBITDA declined 6.4% to $21.31m year-over-year.

• Container volumes increased 24.5% year-over-year, while total cargo throughput dropped 7.7% to 3.21 million tonnes.

• A 20-year electricity agreement with NZAS secures a third of cargo volume and underpins regional stability.

• The Kia Whakau dredging project was completed, increasing channel draft and enabling larger vessels.

Financial highlights

• Net profit after tax: $7.38m (down from $11.71m year-over-year).

• Normalised profit (excluding one-offs): $9.96m (down 13.4% year-over-year).

• Operating revenue: $56.13m (up 4.7% year-over-year).

• EBITDA: $21.31m (down 6.4% year-over-year).

• Earnings per share: 28.1c (down from 44.6c year-over-year).

• Dividends declared per share: 27.0c (unchanged year-over-year).

• Return on shareholders' funds: 12.3% (down from 20.3% year-over-year).

• Shareholders' equity ratio: 58.3% (down from 61.2% year-over-year).

Outlook and guidance

• FY2025 earnings forecasted at $9.3m–$10.3m, reflecting optimism from the NZAS contract and wind farm projects.

• Directors intend to maintain current dividend levels barring unforeseen circumstances.

• Bulk cargoes expected to remain challenged due to difficult offshore markets and ongoing supply chain disruptions.