News
SouthPortNZ Ltd, The operators of the Port of Bluff have got their trading year off to a cracking start announcing an interim net profit of $5.06 million for the 6 months to December 31st.
That’s just under a 54% improvement for the corresponding period last year.
However SouthPort NZ Ltd Chairman Rex Chapman has sounded a note of caution saying the interim results are influenced by a much higher proportion of scheduled annual maintenance falling in the second half of the current financial year. He said there would be “sizeable second half maintenance expenditure which will occur across several operating areas.”
“That aside, the improvement is satisfying as it comes against a challenging market backdrop for a range of cargo providers,” said Mr Chapman.
The Company also experienced an unexpected lift in tonnage, compared with budget indications sourced from customers in autumn 2015.
“These projections had suggested reduced volumes across the board were likely given the slow-down in the Chinese economy and lower international agriculture prices,” said South Port Chief Executive, Mr Mark O’Connor.
“In actuality, total cargo volumes rose 33,000 tonnes or 2%, to 1,512,000 tonnes, compared with 1,479,000 tonnes in the prior corresponding period.”
“This cargo lift was driven primarily by stronger exports of bulk forestry products (logs and woodchip), and increased volumes of dairy products, reflecting the second seasonal impact of the production expansion made by Open Country Dairy at their Awarua manufacturing site.”
“In addition, consistent import volumes of fertiliser and petroleum, plus stable activity related to the NZAS Smelter activity, supported our overall throughput.”
Mr O’Connor said that based on the cargo pattern for FY16 to date “it would appear that financiers are supporting dairy farmers and accommodating continuing pasture maintenance and feed related expenditure.”
The major operational event of the half-year was the delivery of the tug Te Matua, a larger vessel sourced from the Port of Tauranga at a total cost of $2.5 million.
Commissioned pre-Christmas, the modern tug’s 40 tonne towing strength lifts South Port’s combined two-tug towing capacity to 75 tonnes.