SPN
09/02/2012 16:32
HALFYR
REL: 1632 HRS South Port New Zealand Limited (NS)
HALFYR: SPN: South Port Interim Result
SOUTH PORT NEW ZEALAND LIMITED
Results for announcement to the market
Reporting Period 6 months to 31 December 2011
Previous Reporting Period 12 months to 30 June 2011
Amount (000s) Percentage change
Revenue from ordinary activities $NZ12,496 6.0%
Profit (loss) from ordinary activities after tax attributable to security
holder. $NZ2,543 -9.4%
Net profit (loss) attributable to security holders. $NZ2,543 -12.3%
Interim/Final Dividend Amount per security Imputed amount per security
$NZ0.055 $0.023571
Record Date 22 February 2012
Dividend Payment Date 2 March 2012
Comments: A brief
APPENDIX 7 - NZSX Listing Rules
EMAIL: [email protected]
Notice of event affecting securities
Number of pages including this one
(Please provide any other
relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10.
details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is
required.
Full name South Port New Zealand Limited
of Issuer
Name of officer authorised to Lara Stevens
Authority for event,
make this notice e.g. Directors' resolution
Contact phone 03 212 8159 Contact fax 03 212 8685
9 02 2012
number number Date
Nature of event Bonus If ticked,
Rights Issue
Tick as appropriate Issue state whether: Taxable /
Non Taxable Conversion Interest Renouncable
Rights Issue Capital Call Dividend If ticked, state
Full
non-renouncable change whether: Interim
Year Special DRP Applies
EXISTING securities affected by this If more than one
security is affected by the event, use a separate form.
Description of the Fully paid shares
ISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this event
If more than one class of security is to be issued, use a separate form for
each class.
Description of the ISIN
NZSPNE0001S8
class of securities
If unknown, contact NZX
Number of Securities to Minimum
Ratio, e.g
be issued following event Entitlement
1 for 2 for
Conversion, Maturity, Call Treatment of
Fractions
Payable or Exercise Date
Enter N/A if not applicable
Tick if provide an
pari passu OR explanation
Strike price per security for any issue in lieu or date
of the
Strike Price available. ranking
Monies Associated with Event Dividend payable, Call payable,
Exercise price, Conversion price, Redemption price, Application money.
In dollars and cents
Source of
Amount per security $0.055 Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
NZD Supplementary Amount per security
$0.009706
Currency dividend in dollars and cents
details -
$1,442,919.39 NZSX Listing Rule 7.12.7
Date Payable 2 March, 2012
Total monies
Taxation Amount per Security in Dollars and
cents to six decimal places
In the case of a taxable bonus $ Resident
$0.002357 Imputation Credits $0.023571
issue state strike price Withholding Tax
(Give details)
Foreign Nil FWP Credits
Withholding Tax (Give details)
Timing (Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pm Application Date
For calculation of entitlements - Also, Call
Payable, Dividend /
22 February, 2012 Interest Payable, Exercise
Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice Date Allotment Date
Entitlement letters, call notices, For the
issue of new securities.
conversion notices mailed Must be within 5
business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights: Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities: Security Code:
Cease Quoting Old Security 5pm:
APPENDIX I (Rule 10.4)
PRELIMINARY *HALF YEAR/FULL YEAR REPORT ANNOUNCEMENT
SOUTH PORT NEW ZEALAND LIMITED
(Name of Listing Issuer)
For Half Year/Full Year Ended 31 December 2011
(referred to in this report as the "current half year/full year")
Preliminary *Half year/full year report on consolidated results (including
the results for the previous corresponding *half year/full year) in
accordance with Listing Rule 10.4.2.
This report has been prepared in a manner which complies with generally
accepted accounting practice and gives a true and fair view of the matters to
which the report relates [see Note (X) attached] and is based on
*audited/unaudited financial statements. If the report is based on audited
financial statements, any qualification made by the auditor is to be
attached.
The Listed Issuer *has/does not have a formally constituted Audit Committee
of the Board of Directors.
[PLEASE REFER TO ATTACHED NOTES WHEN COMPLETING THIS FORM] *CONSOLIDATED
STATEMENT OF FINANCIAL PERFORMANCE
1. CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
Current
*half year/full year
$NZ'000 *Up/
Down
% Previous
corresponding
*half year/full year
$NZ'000
1.1 OPERATING REVENUE
(a) Trading revenue
12,496
6.0%
11,793
(b) Other revenue
18
161
(c) Total operating revenue
12,514
4.7%
11,954
1.2 OPERATING *SURPLUS (DEFICIT) BEFORE TAXATION
3,563
-15.5%
4,216
(a) Less taxation on operating result
(1,020)
(1,315)
1.3 OPERATING *SURPLUS (DEFICIT) AFTER TAX
2,543
-12.3%
2,901
(a) Extraordinary Items after tax [detail in Item 3]
-
-
(b) Unrealised net change in value of investment properties
-
-
1.4 NET *SURPLUS (DEFICIT) FOR THE PERIOD
2,543
-12.3%
2,901
(a) Net Surplus (Deficit) attributable to minority interests
-
-
1.5 NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF
THE LISTED ISSUER
2,543
-12.3%
2,901
*Delete as required
*CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
2. DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES FOR *HALF
YEAR/FULL YEAR Current
*half year/full year
$NZ'000
Previous
corresponding
*half year/full year
$NZ'000
2.1 INCLUDED IN CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
(a) Interest revenue included in Item 1.1(b)
5
24
(b) # Unusual items for separate disclosure (detail - Item 3)
-
-
(c) Equity earnings [detail - Item 16]
-
-
(d) Interest expense included in Item 1.2 (include all forms of interest,
etc)
170
153
(e) Leasing and renting expenses
-
-
(f) Depreciation
1,202
973
(g) Diminution in the value of assets (other than depreciation)
-
-
(h) Amortisation of goodwill
-
-
(i) Amortisation of other intangible assets
-
-
(j) Impairment of goodwill
-
-
(k) Impairment of other intangible assets
-
-
2.2 SUPPLEMENTARY ITEMS
(a) # Interest costs excluded from Item 2.1(d) and capitalised
-
-
(b) # Outlays (other than those arising from the acquisition of an existing
business) capitalised in intangibles
-
-
(c) Unrecognised differences between the carrying value and market value of
publicly traded investments
-
-
# Items marked in this way need be shown only where their inclusion as
revenue or
exclusion from expenses has had a material effect on reported *surplus
(deficit)
GROUP - CURRENT *HALF YEAR/FULL YEAR
3. DISCONTINUED, UNUSUAL (INCLUDING NON RECURRING), AND EXTRAORDINARY ITEMS
OF THE GROUP
DETAILS AND COMMENTS
Operating Revenuer
$NZ'000
Operating Surplus
$NZ'000
Discontinued Activities:
(Disclose Operating Revenue and Operating Surplus)
-
-
TOTAL DISCONTINUED ACTIVITIES
-
-
Material Unusual (including Non Recurring) Items (included in 1.2)
-
-
Description:
TOTAL MATERIAL NON RECURRING ITEMS
-
-
GROUP - CURRENT *HALF YEAR/FULL YEAR
DETAILS AND COMMENTS
Operating Revenue
$NZ'000
Operating Surplus
$NZ'000
Extraordinary Items (Ref. Item 1..3(a))
-
-
Description: Dividend received as final distribution on the sale of Hardwood
Forests Ltd assets
-
-
TOTAL EXTRAORDINARY ITEMS
-
-
* Delete as required
STATEMENT OF MOVEMENTS IN EQUITY
4. STATEMENT OF MOVEMENTS IN EQUITY
Current *half year/full year
$NZ'000
Previous corresponding *half year/full year
$NZ'000
4.1 *NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER
2,543
2,901
(a) *Net Surplus (Deficit) attributable to minority interest
-
-
4.2 OTHER RECOGNISED REVENUE AND EXPENSES
(a) * Increases (decreases) in revaluation reserves
1
-
(b) Currency Translation Differences
-
-
(c) Minority interest in other recognized revenue and expenses
-
-
4.3 TOTAL RECOGNISED REVENUES AND EXPENSES
2,544
2,901
4.4 OTHER MOVEMENTS
(a) Contributions by Owners
-
-
(b) Distributions to Owners
(3,804)
(3,277)
(c) Other
-
-
4.5 EQUITY AT BEGINNING OF HALF YEAR/FULL YEAR*
28,827
27,287
4.6 EQUITY AT END OF HALF YEAR/FULL YEAR
27,567
26,911
EARNINGS PER SECURITY
5. EARNINGS PER SECURITY
Calculation of basic and fully diluted, EPS in accordance with IAS33:
Earnings Per Share Current *half year/full year
$NZ'000 Previous corresponding *half year/full year
$NZ'000
(a) Basic EPS
$0.097
$0.111
(b) Diluted EPS (if materially different from (a))
-
-
6. MATERIAL ACQUISITIONS OF SUBSIDIARIES [see Note (VII) attached]:
(a) Name of subsidiary or group of subsidiaries
-
-
(b) Percentage of ownership acquired
-
-
(c) Contribution to consolidated net *Surplus (Deficit) (item 1.4)
$ -
-
(d) Date from which such contribution has been calculated
-
-
$ -
-
7. MATERIAL DISPOSALS OF SUBSIDIARIES [see Note (VII) attached]:
(a) Name of subsidiary or group of subsidiaries
-
-
(b) Contribution of subsidiaries to consolidated net *Surplus (Deficit) (item
1.4)
$ -
-
(c) Date to which such contribution has been calculated
-
-
(d) Contribution to consolidated net *Surplus (Deficit) (item 1.4) for the
previous corresponding half year/full year
$ -
-
(e) Contribution to consolidated net *Surplus (Deficit) (item 1.4) from sale
of subsidiary
$ -
-
8. REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS
Information on the industry and geographical segments of the Listed Issuer to
be reported for the *half year/full year in accordance with the provisions of
SSAP:23: Financial Reporting for Segments. Because of the differing nature
and extent of segments among Listed Issuers, no complete proforma is
provided, and the segment information should be completed separately and
attached to this report. However, the following shows a suitable list of
items for presentation and indicates which amounts should agree with items
included elsewhere in the *half year/full year report:
SEGMENTS
Industry
- Operating revenue:
? Sales to customer outside the group
? Intersegment sales
? Unallocated revenue
- Total revenue [consolidated total equal to Item 1.1(c)]
- Segment result
- Unallocated expenses
- Operating Surplus (Deficit) after tax [Item 1.3]
- Segment assets
- Unallocated assets
- Total assets [Equal to Item 9.3]
Geographical
- Operating revenue:
? Sales to customer outside the group
? Intersegment sales
? Unallocated revenue
- Total revenue [consolidated total equal to Item 1.1(c)]
- Segment result
- Unallocated expenses
- Operating Surplus (Deficit) after tax [Item 1.3]
- Segment assets
- Unallocated assets
- Total assets [Equal to Item 9.3]
[Note (VIII) attached has particular relevance for the preparation of this
statement] CONSOLIDATED STATEMENT OF FINANCIAL POSITION
9. CURRENT ASSETS
At end of current
*half year/full year
$NZ'000
As shown in last
Annual Report
$NZ'000 If half yearly
as shown in last
Half Yearly Report
$NZ'000
(a) Cash
957
380
1,485
(b) Trade receivables
4,430
3,008
3,602
(c) Investments
-
-
-
(d) Inventories
-
-
-
(e) Other assets, current
905
-
-
TOTAL CURRENT ASSETS
6,292
3,388
5,087
9.1 NON-CURRENT ASSETS
(a) Trade receivables
-
-
-
(b) Investments
21
19
17
(c) Inventories
-
-
-
(d) Property, plant and equipment
29,006
30,500
30,574
(e) Goodwill
-
-
-
(f) Deferred Taxation Assets
-
-
-
(g) Other Intangible Assets
-
-
-
(h) Other assets, non current
-
-
-
9.2 TOTAL NON- CURRENT ASSETS
29,027
30,519
30,591
9.3 TOTAL ASSETS
35,319
33,907
35,678
9.4 CURRENT LIABILITIES
(a) Trade Creditors
1,668
2,257
1,141
(b) Income in advance, current
82
82
-
(c) Secured loans
4,400
300
4,850
(d) Unsecured loans
-
-
-
(e) Provisions, current
714
755
686
(f) Other liabilities, current
234
1,148
1,265
TOTAL CURRENT LIABILITIES
7,098
4,542
7,942
9.5 NON- CURRENT LIABILITIES
(a) Accounts payable, non-current
-
-
-
(b) Secured loans
-
-
-
(c) Unsecured loans
-
-
-
(d) Provisions, non-current
59
55
51
(e) Deferred Taxation Liability, non-current
128
105
446
(f) Other liabilities, non-current
467
378
328
9.6 TOTAL NON-CURRENT LIABILITIES
654
538
825
9.7 TOTAL LIABILITIES
7,752
5,080
8,767
9.8 NET ASSETS
27,567
28,827
26,911
9.9 SHAREHOLDERS' EQUITY
(a) Share capital (optional)
9,418
9,418
9,418
(b) Reserves (optional) (i) Revaluation reserve
14
13
11
(ii) Other reserves
-
-
-
(c) Retained Surplus (accumulated Deficit) (optional)
18,135
19,396
17,482
9.10 SHAREHOLDERS' EQUITY ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER
27,567
28,827
26,911
(a) Minority equity interests in subsidiaries
-
-
-
9.11 TOTAL SHAREHOLDERS' EQUITY
27,567
28,827
26,911
(a) Returns on Assets (%) (EBIT divided by Total Assets)
10.8%
26.2%
12.2%
(b) Return on Equity (%) (Net Income divided by Shareholders' Equity)
9.2%
22.3%
10.7%
(c) Debt to Equity Ratio (%) (Total Liabilities divided by Shareholders')
Equity)
28.1%
17.6%
32.5%
[See Note (IX) attached] CONSOLIDATED STATEMENT OF CASH FLOWS FOR *HALF
YEAR/FULL YEAR
10. CASH FLOWS RELATING TO OPERATING ACTIVITIES
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
(a) Receipts from customers
11,079
15,593
(b) Interest received
5
24
(c) Dividends received
-
-
(d) Payment to suppliers and employees
(7,633)
(6,529)
(e) Interest paid
(156)
(120)
(f) Income taxes paid
(1,910)
(1,225)
(g) Other cash flows relating to operating activities
105
(679)
NET OPERATING FLOWS
1,490
7,064
[See Note (IX) attached]
11. CASH FLOWS RELATED TO INVESTING ACTIVITIES
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
(a) Cash proceeds from sale of property, plant and equipment
19
104
(b) Cash proceeds from sale of equity investments
-
-
(c) Loans repaid by other entities
-
-
(d) Cash paid for purchases of property, plant and equipment
(1,228)
(5,845)
(e) Interest paid - capitalised
-
-
(f) Cash paid for purchases of equity investments
-
-
(g) Loans to other entitles
-
-
(h) Other cash flows relating to investing activities
-
(155)
NET INVESTING CASH FLOWS
(1,209)
(5,896)
[See Note (IX) attached]
12. CASH FLOWS RELATED TO FINANCING ACTIVITIES
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
(a) Cash proceeds from issue of shares, options, etc
-
-
(b) Borrowings
4,100
2,900
(c) Repayment of borrowings
-
-
(d) Dividend paid
(3,804)
(3,279)
(e) Other cash flows relating to financing activities
-
-
NET FINANCING CASH FLOWS
296
(379)
[See Note (IX) attached]
13. NET INCREASE (DECREASE IN CASH HELD)
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
(a) Cash at beginning of *half year/full year
380
696
(b) Exchange rate adjustments to Item 12.3(a) above
-
-
(c) CASH AT END OF *HALF YEAR/FULL YEAR
957
1,485
14. NON-CASH FINANCING AND INVESTING ACTIVITIES
Provide details of financing and investing transactions which have had a
material effect on group assets and liabilities but did not involve cash
flows.
15. RECONCILIATION OF CASH
For the purposes of the above statement of cash flows, cash includes
.............................................................................
................................
Cash at the end of the *half year/full year as shown in the statement of cash
flows is reconciled to the related items in the financial statements as
follows:
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
Cash on hand and at bank
528
1,213
Deposits at call
429
272
Bank overdraft
-
-
Other (provide details eg. Term Deposits)
-
-
TOTAL = CASH AT END OF *HALF YEAR/FULL YEAR [Item 13(c)]
957
1,485
* Delete as required
EQUITY ACCOUNTED EARNIGS FROM ASSOCIATES
16. EQUITY ACCOUNTED INVESTMENTS IN ASSOCIATES
Information attributable to the reporting group's share of investments in
associates and other material interests to be disclosed by way of separate
note below (refer FRS-38 Accounting for Investments in Associates).
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
16.1 GROUP SHARE OF RESULTS OF ASSOCIATES
-
-
(a) OPERATING *SURPLUS (DEFICIT) BEFORE TAX
-
-
(b) Less Tax
-
-
(c) OPERATING *SURPLUS (DEFICIT) AFTER TAX
-
-
(i) Extraordinary items
-
-
(d) NET *SURPLUS (DEFICIT) AND EXTRAORDINARY ITEMS AFTER TAX
-
-
16.2 MATERIAL INTERESTS IN CORPORATIONS NOT BEING SUBSIDIARIES
(a) THE GROUP HAS A MATERIAL (FROM GROUP'S VIEWPOINT) INTEREST IN THE
FOLLOWING CORPORATIONS:
Name
Percentage of ordinary
shares held at end of
*half year/full year
Contribution to net
*surplus (deficit) (item 1.5)
EQUITY ACCOUNTED
ASSOCIATES
Current
*half year/
full year Previous
corresponding
*half year/
full year
Current
*half year/full year
$NZ'000 Previous
corresponding
*half year/full year
$NZ'000
-
-
Equity Accounted in Current Year
-
-
OTHER MATERIAL INTERESTS
Not Equity Accounted in Current Year
*Delete as required
EQUITY ACCOUNTED INVESTMENT IN ASSOCIATES
Current
*half year/full year
$NZ'000 Previous corresponding
*half year/full year
$NZ'000
(b) INVESTMENT IN ASSOCIATES
Carrying value of investments in associates at beginning of half year/full
year
-
-
Share of changes in associates' post acquisition surpluses/and reserves:
- Retained surplus
-
-
- Reserves
-
-
Net goodwill amortisation and impairment adjustments in the period
-
-
Less Dividends received in the period
-
-
Equity carrying value of investments at the end of half year/full year
-
-
17. ISSUED AND QUOTED SECURITIES AT END OF CURRENT *HALF YEAR/FULL YEAR
Category of Securities Issued Number Quoted Number Cents Paid-Up Value
(if not fully paid)
PREFERENCE SHARES:
# (Description)
Issued during current *half year/full year
ORDINARY SHARES
Issued during current *half year/full year 26,234,898 9,418,383
CONVERTIBLE NOTES
# (Description)
Issued during current *half year/full year
OPTIONS:
Exercise Price Expiry Date
Issued during current *half year/full year
DEBENTURES - Total only: $
UNSECURED NOTES - Totals only: $
OTHER SECURITIES $ $
# Description includes rate of dividend or interest and any redemption or
conversion rights together with the prices and dates thereof.
18. COMMENTS BY DIRECTORS If no report in any section, state NIL. If
insufficient space below, provide details in the pages attached to this
report. Refer to Press Release attached
(a) Material factors affecting the revenues and expenses of the group for the
current *half year/full
year.........................................................................
.....
(b) Significant trends or events since end of current *half year/full year
.............................................................................
....................................................................
(c) Changes in accounting policies since last Annual Report and/ or last Half
Yearly Report to be disclosed
.............................................................................
.............................................................................
.............................................................................
............................
(d) Critical Accounting Policies - Management believes the following to be
critical accounting policies. That is they are both important to the
portrayal of the Issuer's financial condition and results, as they require
management to make judgments and estimates about matters that they are
inherently uncertain
.............................................................................
.............................................................................
.............................................................................
.............................
(e) Management's discussion and analysis of financial condition, result,
and/or operations (optional) - this section should contain forward looking
statements that should outline where these involved risk and uncertainty.
.............................................................................
.............................................................................
.............................................................................
.............................
(f) Other Comments
.............................................................................
.............................................................................
.............................................................................
.............................
19. DIVIDEND
(a) Dividend Yield as at balance date (%) (Annual dividend per share divided
by price per share -
(b) Tax Adjusted Dividend Yield as at balance date (%) (Annual net dividend
per share divided by price per share)
20. ANNUAL MEETING (If full year report)
(a) To be held at
(b) Date Time
(c) Approximate date of availability of Annual Report
If this *half year/full year report was approved by resolution of the Board
of Directors, please indicate date of meeting: 9 February 2012
.............................................................................
..............................................
(Signed by) Authorised Officer of Listed Issuer
Lara Stevens, Finance Manager 9 February 2012
NZX/MEDIA STATEMENT
9 February 2012
HIGHER OPERATING COSTS OFFSET STRONG VOLUMES AT BLUFF
The continuing strong demand for the Southern Region's products ensured that
South Port New Zealand's cargo volumes in the first half of the 2012 year
exceeded the record level set in the first half of the previous financial
year.
"However, as we previously signalled, the impact of a higher operating cost
structure meant that the company generated a lower net profit after tax of
$2.54 million (2011 - $2.90 million)," said the Chairman, Mr Rex Chapman.
"Bulk cargo volumes again proved resilient with NZAS related products,
fertiliser, stock food and woodchips all recording significant increases over
the comparable period," he said.
He noted that South Port achieved a 25% lift in cargo volume during 2011
(compared to the average annual tonnage level of the three previous financial
years). "This on-going activity gain can only be sustained with additional
personnel, plant and infrastructure and that comes at a cost".
"The bottom line in the opening half-year reflected the cost of establishing
appropriate resources to handle a sustained lift in base cargo; the effect of
increased depreciation on large scale plant (mobile harbour crane and top
lifter forklifts) and significantly higher insurance charges."
Programmed repair and maintenance activity was slightly ahead of budget at 31
December 2011 and this should track at a lower level in the second half of
the current financial year.
The Directors have declared an improved fully imputed interim dividend of
5.50 cents per share (2010 - 5.50 cents) payable on 2 March 2012.
GUIDANCE
South Port has banked an encouraging first half result, said Mr Chapman.
"This factor together with stable short to medium term cargo indications
should enable the company to deliver a full year operating profit consistent
with the range signalled at the time of generating our 2011 annual report.
In late January, South Port entered into a contract to realise a surplus
Liebherr LHM 320 mobile harbour crane. The crane being sold was replaced by a
larger and more modern crane about a year ago and this new plant is servicing
the company's customers very effectively. Applying current exchange rates, an
after-tax gain of approximately $240,000 is expected to be achieved on
settlement.
Based on all known factors at the date of releasing its 2012 interim result
and taking into account the expected surplus crane sale, South Port estimates
that its full year earnings should fall in the range of $5.2 million to $5.5
million.
PORT ACTIVITY
The Chief Executive Mr Mark O'Connor said cargo activity for the six months
to 31 December 2011 registered at a higher level of 1,390,000 tonnes. "This
compares with 1,293,000 tonnes in the previous interim period and translates
to an increase of 7% in volume terms. This tonnage level represents a fresh
record for the company in the first half of a financial year."
"The lift in cargo is due primarily to robust NZAS import and export product
flows, strong woodchip export levels, continuing substantial fertiliser
inflows and increased imports of supplementary stock food.
"Logs developed a period of weakness during the fourth quarter of the
calendar year with China demand backing off noticeably," said Mr O'Connor.
He said other operational events included:
NZAS and Pacific Aluminium - In October 2011 Rio Tinto announced that
following a strategic review it would be streamlining its aluminium
production division and divesting several world-wide assets at an appropriate
time in the future. Among six Australian and New Zealand assets transferred
into a new business called Pacific Aluminium is New Zealand Aluminium
Smelters (NZAS) which operates the aluminium production facility located on
Tiwai Peninsula alongside Bluff Harbour.
"This significant customer of South Port has signalled that while it is now
part of a different business structure it is very much operating on a
"business as usual" basis. Rio Tinto has also stated that it expects the
Pacific Aluminium assets will have a bright future under any potential new
ownership. Divestment options may include sale to a third party or listing on
a stock exchange," said Mr O'Connor.
"It is also worthwhile noting that NZAS has a significant "take or pay"
electricity contract with Meridian Energy which covers an 18 year period
through to 2030.
Forestry Exports - Despite the sizeable decline in log export activity in the
final quarter of calendar 2011, forestry customers expect more favourable
trading conditions will be re-established post the 2012 Chinese New Year
period. Sawn timber tonnages exceeded those achieved in the comparable 2010
6-month period with strong outflows of woodchip product also occurring.
Additional Dry Warehousing - As advised to shareholders at the October annual
meeting, South Port intends to construct further dry warehousing on the
Island Harbour at Bluff in order to cater for anticipated future regional
cargo growth. Design options and costings are currently being secured with a
view to establishing this additional warehousing resource over the next 12
months.
International Shipping Line Consolidation - The latter half of 2011 was also
noteworthy for the continuing action of mainly container shipping lines to
rationalise their global operations through business alliances and vessel
sharing arrangements.
"These are designed to reduce operating costs in what can only be described
as a challenging freight market, partly attributable to the economic events
occurring in Europe which have severely impacted trade volumes flowing
between that market and Asia.
"Industry commentators predict that a sizeable percentage of the world-wide
container shipping fleet will have to be laid up in the coming year as
contracted larger new-build vessels come into the system."
OPPORTUNITIES
Mr O'Connor notes new business opportunities include plans by shipping line
MSC (which delivers a weekly global container connection through Bluff) to
offer a weekly service linked to the North and South American markets, plus a
more rapid cargo delivery to Europe via this additional route. Regional
exporters are able to access this service directly through Bluff with
transhipment to the USA and other markets occurring at Port of Tauranga.
The oil and gas exploration consortium holding licences in Great South Basin
(GSB) (Shell NZ 50%, OMV NZ 18%, PTTEP NZ 18% and Mitsui E&P Australia 14%)
has recently committed to extensive 3D seismic capture over the current
summer months. The survey vessel "Polarcus Alima" is undertaking the seismic
work in the North East area of GSB.
"Once the seismic data has been collected the consortium has indicated that
it will take the remainder of 2012 to process the information and then a
further period in 2013 to interpret and draw conclusions on the detailed
geological portrait."
"South Port and regional stakeholders continue to interact with the oil and
gas exploration companies and remain optimistic about the energy potential
available in GSB."
Development of Southland's lignite resource has begun with the construction
of a briquette conversion plant at Mataura in Eastern Southland starting in
the last quarter of 2011. Once fully operational the $25 million briquette
plant is expected to produce 90,000 tonnes of higher grade fuel units using
approximately 150,000 tonnes of lignite as raw material.
Solid Energy through direct land ownership has access to approximately 1.4
billion tonnes of lignite in Eastern Southland.
"It has conveyed its long term intentions to develop this resource by listing
potential future options under a "Staircase of Opportunity" framework for the
planned investment in progressively more capital intensive processes which
will convert the low grade lignite material into more valuable end products
such as briquettes, urea and synthetic diesel."
"Solid Energy has gone to some lengths to highlight to stakeholders that it
will take full responsibility for greenhouse gas emissions associated with
its projects including the full cost of carbon."
L&M Energy continues to advance its Coal Seam Gas project in Western
Southland as well as evaluating other energy-related developments.
"If the reserves are viable, Coal Seam Gas could be redirected to commercial
users, converted into transport fuels or used to generate electricity. In
addition L&M Energy is assessing whether Shale Gas reserves exist in
commercial quantities in the Waiau Basin (Western Southland)."
OUTLOOK
"As we move forward into 2012 it is apparent that global markets still face a
number of significant challenges," said Mr Chapman.
"It is likely that New Zealand will not be immune from the economic ills that
are being suffered by a wide range of countries around the world. An
unhealthy European zone does not bode well for our key Asian trading partners
who rely on Europe to purchase their manufactured goods.
In the trading conditions that we are currently experiencing, there will be
sectors that get buffeted around and others that will continue to perform
well.
"For a number of South Port's customers it will be a matter of bracing
themselves for the bumpy road that lies ahead. Cost containment and prudent
management will be essential tools and South Port will be focusing on these
components within its own business.
"On the local front a number of indicators suggest that New Zealand's
economic recovery is losing momentum and business confidence is waning.
Whilst New Zealand is better placed than many other nations, it is still
likely to be some time before economic growth returns to stimulatory levels.
"Fortunately our country still possesses a number of comparative advantages
which will continue to assist New Zealand to operate as an active trading
nation. Some of these advantages include water, productive land, energy, a
large exclusive economic zone, food safety, minerals, oil/gas and the brand
"NZ Inc".
______________________
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr Mark O'Connor Mr Warren Head
Chief Executive Managing Director
South Port New Zealand Ltd Head Consultants Ltd
Tel 03 212 8159 Tel 03 365 0344
Mob: 0272 560 407 Mob: 021 340 650
End CA:00219363 For:SPN Type:HALFYR Time:2012-02-09 16:32:15
